H. B. 3211


(By Delegate Walters)
[Introduced March 30, 2001; referred to the
Committee on Finance.]




A BILL to amend and reenact section one, article twenty-one, chapter eleven of the code of West Virginia, one thousand nine hundred thirty-one, as amended; to further amend said article by adding thereto a new section, designated section four-g; to amend and reenact section one, article twenty-four of said chapter; and to further amend said article by adding thereto a new section, designated section four-b, all relating to legislative findings; and providing for a ten percent tax reduction to all personal income and corporate net income tax rates.

Be it enacted by the Legislature of West Virginia:
That section one, article twenty-one, chapter eleven of the code of West Virginia, one thousand nine hundred thirty-one, as amended, be amended and reenacted; that said article be further amended by adding thereto a new section, designated section four-g; that section one, article twenty-four of said chapter be amended and reenacted; and that said article be further amended by adding thereto a new section, designated section four-b, all to read as follows:
ARTICLE 21. PERSONAL INCOME TAX.

PART I. GENERAL.

§11-21-1. Legislative findings.

(a) The Legislature hereby finds and declares that the adoption by this state for its personal income tax purposes of the provisions of the laws of the United States relating to the determination of income for federal income tax purposes will: (1) Simplify preparation of state income tax returns by taxpayers; (2) improve enforcement of the state income tax through better use of information obtained from federal income tax audits; and (3) aid interpretation of the state tax law through increased use of federal judicial and administrative determinations and precedents.
(b) The Legislature finds that tax policy is a legitimate instrument for state government to utilize in efforts to stimulate small business and that too often the tax policies in force have had an opposite effect.
(c) The Legislature recognizes that the level of poverty in this state is among the highest in the country while per capita income is among the lowest and that reducing the personal income tax will serve to reverse these troubling statistical trends.
(d) The Legislature finds that an across-the-board income tax cut of ten percent would stimulate the growth of small business, help create jobs and render relief to those citizens of this state who are in need of financial relief.
§11-21-4g. Ten percent income tax reduction.

For taxable years ending on and after the first day of July, two thousand one, there shall be a ten percent reduction in all personal income tax rates.
ARTICLE 24. CORPORATION NET INCOME TAX.
§11-24-1. Legislative findings.
(a) The Legislature finds and declares that the adoption by this state for its corporation net income tax purposes of certain provisions of the laws of the United States relating to the determination of income for federal income tax purposes will: (1) Simplify preparation of state corporation net income tax returns by taxpayers; (2) improve enforcement of the state corporation net income tax through better use of information obtained from federal income tax audits; and (3) aid interpretation of the state corporation net income tax law through increased use of federal judicial and administrative determinations and precedents.
(b) The Legislature finds that tax policy is a legitimate instrument for state government to utilize in efforts to stimulate small business and that too often the tax policies in force have had an opposite effect.
(c) The Legislature recognizes that the level of unemployment in this state is unacceptably high while per capita income is among the lowest in the country and that reducing the corporate net income tax will serve to reverse these troubling statistical trends.
(d) The Legislature finds that an across-the-board income tax cut of ten percent would stimulate the growth of small business, help create jobs and render relief to those citizens of this state who are in need of financial relief.
(e) The Legislature does therefore declare declares that this article twenty-four be construed so as to accomplish the foregoing purposes.
§11-24-4b. Ten percent reduction for all rates.

For taxable years ending on and after the first day of July, two thousand one, there shall be a ten percent reduction in any corporate net income tax rate.



NOTE: This bill provides that all personal and corporate taxpayers receive a ten percent across-the-board tax reduction. It includes legislative findings that support the tax reductions.

Strike-throughs indicate language that would be stricken from the present law, and underscoring indicates new language that would be added.

§§11-21-4g and 11-24-4b are new; therefore, strike-throughs and underscoring are omitted.