H. B. 2725
(By Delegates Frederick and Flanigan
)
[Introduced March 5, 2001
; referred to the
Committee on Finance.]
A BILL to amend and reenact section four, article twenty-four,
chapter eleven of the code of West Virginia, one thousand nine
hundred thirty-one, as amended, relating to reducing the
corporation net income tax.
Be it enacted by the Legislature of West Virginia:
That section four, article twenty-four, 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 24. CORPORATION NET INCOME TAX.
§11-24-4. Imposition of primary tax and rate thereof;
effective
and termination dates.
Primary tax.
(1) In the case of taxable periods beginning after the thirtieth day of June, one thousand nine hundred sixty-seven, and
ending prior to the first day of January, one thousand nine hundred
eighty-three, a tax is hereby imposed for each taxable year at the
rate of six percent per annum on the West Virginia taxable income
of every domestic or foreign corporation engaging in business in
this state or deriving income from property, activity or other
sources in this state, except corporations exempt under section
five of this article.
(2) In the case of taxable periods beginning on or after the
first day of January, one thousand nine hundred eighty-three, and
ending prior to the first day of July, one thousand nine hundred
eighty-seven, a tax is hereby imposed for each taxable year on the
West Virginia taxable income of every domestic or foreign
corporation engaging in business in this state or deriving income
from property, activity or other sources in this state, except
corporations exempt under section five of this article, and any
banks, banking associations or corporations, trust companies,
building and loan associations, and savings and loan associations,
at the rates which follow:
(A) On taxable income not in excess of fifty thousand dollars,
the rate of six percent; and
(B) On taxable income in excess of fifty thousand dollars, the
rate of seven percent.
(3) In the case of taxable periods beginning on or after the
first day of July, one thousand nine hundred eighty-seven, a tax is
hereby imposed for each taxable year on the West Virginia taxable
income of every domestic or foreign corporation engaging in
business in this state or deriving income from property, activity
or other sources in this state, except corporations exempt under
section five of this article, at the rate of nine and three
quarters percent. Beginning the first day of July, one thousand
nine hundred eighty-eight, and on each first day of July thereafter
for four successive calendar years, the rate shall be reduced by
fifteen one hundredths of one percent per year, with such rate to
be nine percent on and after the first day of July, one thousand
nine hundred ninety-two.
(4) In the case of taxable periods beginning on or after the
first day of July, two thousand one, a tax is hereby imposed for
each taxable year on the West Virginia taxable income of every
domestic or foreign corporation engaging in business in this state
or deriving income from property, activity or other sources in this
state, except corporations exempt under section five of this article, at the rate of nine percent. Beginning the first day of
July, two thousand two, and on each first day of July thereafter
for six successive calendar years, the rate shall be reduced by one
half of one percent per year, with the rate to be six percent on
and after the first day of July, two thousand eight.
NOTE: The purpose of this bill is to reduce the primary rate
of tax on corporations 1/2% a year for 6 years so that the
corporation net income tax rate will be 6% at the end of 6 years.
Strike-throughs indicate language that would be stricken from
the present law, and underscoring indicates new language that would
be added.