H. B. 2272
(By Delegates Pino, Cann and Brown)
[Introduced January 15, 2003; referred to the
Committee on Political Subdivisions then Finance.]
A BILL to amend chapter eighteen of the code of West Virginia, one
thousand nine hundred thirty-one, as amended, by adding
thereto a new article, designated article twenty-one, relating
to exempting start-up businesses founded by West Virginia
college or university graduates from various state, county and
municipal taxes for the first three years of operation.
Be it enacted by the Legislature of West Virginia:
That chapter eighteen of the code of West Virginia, one
thousand nine hundred thirty-one, as amended, be amended by adding
thereto a new article, designated article twenty-one, to read as
follows:
ARTICLE 21. WEST VIRGINIA COLLEGE AND UNIVERSITY GRADUATE
INCENTIVE PROGRAM TO ENCOURAGE IN-STATE CREATION
OF BUSINESSES.
§18-21-1. Legislative purpose.
The Legislature finds that West Virginia falls short from
national averages for the percentage of state residents engaged in
entrepreneurial activity. Further, recent evidence indicates that
a high percentage of West Virginia youth planning to attend an
institution of higher learning, plan to do so out-of-state.
Finally, the Legislature finds that these adverse phenomena of lack
of entrepreneurial activity and a majority of in-state youth
planning to go out-of-state for higher learning can best and most
cost-efficiently be addressed by creative tax policy that creates
incentives to both, engage in entrepreneurial activity and attend
and graduate from an in-state institution of higher learning.
§18-21-2. Tax incentives for West Virginia graduates of higher
learning conducting state-based private businesses.
Any resident who graduates from a state sanctioned institution
of higher education and who engages in any lawful business activity
as a sole proprietorship, for the first three years of operation,
is exempt from the payment of business-related personal income tax,
capital gains tax, or any municipal, county or state business and
occupation tax. Any resident who graduates from a state sanctioned
institution of higher education and who is a stockholder and
officer of a corporation, or general partner in a partnership, or
partner in a limited liability company shall be exempt from any
business related corporate, partnership or limited liability
company taxes, capital gains tax, or any municipal, county or state business and occupation tax to the extent of their proportionate
share in the interests in the corporation, partnership or limited
liability company for the first three years they are involved with
the business entity.
NOTE: The purpose of this bill is to exempt start-up
businesses founded by West Virginia college or university graduates
from various state, county and municipal taxes for the first three
years of operation.
This article is new; therefore, strike-throughs and
underscoring have been omitted.