Senate Bill No. 549
(By Senators Ross, Sharpe, Anderson and McCabe)
____________
[Introduced March 21, 2001; referred to the Committee on
Finance.]
____________
A BILL to amend and reenact section seven, article thirteen-d,
chapter eleven of the code of West Virginia, one thousand nine
hundred thirty-one, as amended, relating to authorizing the
tax commissioner to waive the requirement that prior approval
be given by the tax commissioner for a transfer or sale of
property with respect to which a tax credit has been allowed
under said article so the transfer or sale will not be treated
as a premature disposition of the property under the
provisions of section six of said article.
Be it enacted by the Legislature of West Virginia:
That section seven, article thirteen-d, chapter eleven of the
code of West Virginia, one thousand nine hundred thirty-one, as
amended, be amended and reenacted to read as follows:
ARTICLE 13D. TAX CREDITS FOR INDUSTRIAL EXPANSION AND
REVITALIZATION, RESEARCH AND DEVELOPMENT
PROJECTS, CERTAIN HOUSING DEVELOPMENT PROJECTS,
MANAGEMENT INFORMATION SERVICES FACILITIES,
INDUSTRIAL FACILITIES PRODUCING COAL-BASED
LIQUIDS USED TO PRODUCE SYNTHETIC FUELS, AND
AEROSPACE INDUSTRIAL FACILITY INVESTMENTS.
§11-13D-7. Transfer of eligible investment to successors.
(a) Mere change in form of business. -- Property shall may not
be treated as disposed of under section six of this article by
reason of a mere change in the form of conducting the business as
long as the property is retained in a similar industrial business
or management information services business activity in this state
and the taxpayer retains a controlling interest in the successor
business. In this event, the successor business shall be allowed
to may claim the amount of credit still available with respect to
the industrial facility or facilities transferred or to the
eligible research and development project or management information
services facility, and the taxpayer (transferor) shall may not be
required to redetermine the amount of credit allowed in earlier
years.
(b) Transfer or sale to successor. -- Provided that the tax commissioner gives prior approval for a transfer or sale, property
shall may not be treated as disposed of under section six by reason
of any transfer or sale to a successor business which continues to
operate the industrial facility or management information services
facility in this state. This requirement for prior approval may be
waived by the tax commissioner at any time prior to, or subsequent
to, the transfer or sale. Upon transfer or sale, the successor
shall acquire the amount of credit that remains available under
this article for each taxable year subsequent to the taxable year
of the transferor during which the transfer occurred, and, for the
year of transfer, an amount of annual credit for such the year in
the same proportion as the number of days remaining in the
transferor's taxable year bears to the total number of days in such
the taxable year, and the taxpayer (transferor) shall not be
required to redetermine the amount of credit allowed in earlier
years. In determining whether or not to approve a disposition
pursuant to this subsection, the tax commissioner shall take into
account the legislative findings and purpose contained in section
one of this article in making such the decision.
NOTE: The purpose of this bill is authorize the tax
commissioner to waive the requirement that prior approval be given
by the tax commissioner for a transfer or sale of property to a successor business with respect to which a tax credit has been
allowed under article thirteen-d so the transfer or sale will not
be treated as a premature disposition of the property under the
provisions of section six of that article.
Strike-throughs indicate language that would be stricken from
the present law, and underscoring indicates new language that would
be added.