H. B. 2363
(By Mr. Speaker, Mr. Kiss, and Delegate Browning)
[Introduced January 17, 2003; referred to the
Committee on the Judiciary then Finance.]
A BILL to amend and reenact section five, article twelve, chapter
eleven of the code of West Virginia, one thousand nine hundred
thirty-one, as amended; and to amend and reenact section
eleven, article two, chapter eleven-a of said code, all
relating to payment of personal property taxes as a condition
precedent to receiving or maintaining a business registration
certificate; allowing the tax commissioner to suspend a
business registration certificate for failure to pay
delinquent personal property taxes; requiring the tax
commissioner to suspend or refuse to issue a business
registration certificate upon notice from the sheriff that the
registrant has not paid delinquent personal property taxes;
and requiring the tax commissioner to propose legislative
Be it enacted by the Legislature of West Virginia:
That section five, article twelve, chapter eleven of the code
of West Virginia, one thousand nine hundred thirty-one, as amended,
be amended and reenacted; and that section eleven, article two,
chapter eleven-a of said code be amended and reenacted, all to read
CHAPTER 11. TAXATION.
ARTICLE 12. BUSINESS REGISTRATION TAX.
§11-12-5. Time for which registration certificate granted; power
of tax commissioner to suspend or cancel certificate;
refusal to renew.
(a) Registration period. -- All business registration
certificates issued under the provisions of section four of this
shall be are for the period of one year beginning the first
day of July and ending the thirtieth day of the following June:
Provided, That beginning on or after the first day of July, one
thousand nine hundred ninety-nine, all business registration
certificates issued under the provisions of section four of this
article shall be issued for two fiscal years of this state, subject
to the following transition rule. If the first year for which a
business was issued a business registration certificate under this
article began on the first day of July of an even-numbered calendar
year, then the tax commissioner may issue a renewal certificate to
that business for the period beginning the first day of July, one
thousand nine hundred ninety-nine, and ending the thirtieth day of June, two thousand, upon receipt of fifteen dollars for each such
one-year certificate. Thereafter, only certificates covering two
fiscal years of this state shall be issued.
(b) Revocation or suspension of certificate. --
(1) The tax commissioner may cancel or suspend a business
registration certificate at any time during a registration period
(A) The registrant filed an application for a business
registration certificate, or an application for renewal thereof,
for the registration period that was false or fraudulent.
(B) The registrant willfully refused or neglected to file a
tax return or to report information required by the tax
commissioner for any tax imposed by or pursuant to this chapter.
(C) The registrant willfully refused or neglected to pay any
tax, additions to tax, penalties or interest, or any part thereof,
when they became due and payable under this chapter, determined
with regard to any authorized extension of time for payment.
(D) The registrant neglected to pay over to the tax
commissioner on or before its due date, determined with regard to
any authorized extension of time for payment, any tax imposed by
this chapter which the registrant collects from any person and
holds in trust for this state.
(E) The registrant abused the privilege afforded to it by
article fifteen or fifteen-a of this chapter to be exempt from payment of the taxes imposed by such articles on some or all of the
registrant's purchases for use in business upon issuing to the
vendor a properly executed exemption certificate, by failing to
timely pay use tax on taxable purchase for use in business, or by
failing to either pay the tax or give a properly executed exemption
certificate to the vendor.
(F) The registrant has failed to pay in full delinquent
personal property taxes owing for the calendar year immediately
preceding the calendar year in which the application is made.
(2) Before canceling or suspending any
registration certificate, the tax commissioner shall give written
notice of his or her intent to suspend or cancel the business
registration certificate of the taxpayer, the reason for the
suspension or cancellation, the effective date of the cancellation
or suspension and the date, time and place where the taxpayer may
appear and show cause why such business registration certificate
should not be canceled or suspended. This written notice shall be
served on the taxpayer in the same manner as a notice of assessment
is served under article ten of this chapter, not less than twenty
days prior to the date of such the show cause informal hearing.
The taxpayer may appeal cancellation or suspension of its business
registration certificate in the same manner as a notice of
assessment is appealed under article ten ten-a of this chapter:
Provided, That the filing of a petition for appeal shall does not stay the effective date of the suspension or cancellation. A stay
may be granted only after a hearing is held on a motion to stay
filed by the registrant, upon finding that state revenues will not
be jeopardized by the granting of the stay. The tax commissioner
may, in his or her discretion and upon such terms as he or she may
specify, agree to stay the effective date of the cancellation or
suspension until another date certain.
(3) On or before the first day of August, two thousand three,
the tax commissioner shall propose for promulgation legislative
rules through which ancillary procedures may be provided, pursuant
to authorization by the Legislature, to streamline the tax
commissioner's suspension of business registration certificates for
failure to pay delinquent personal property taxes pursuant to
paragraph (F), subdivision (1) of this section. If the rules
proposed for promulgation are authorized by the Legislature and
include requirements that county sheriffs provide the tax
commissioner or the registrant with information or notice, then
those requirements shall have the same force and effect as if set
forth herein. No provision of this subdivision may be construed to
restrict in any manner the authority of the tax commissioner to
suspend such certificates for failure to pay delinquent personal
property taxes under paragraph (C) or (F), subdivision (1) of this
or under any other provision of this code prior to the
authorization of the rules.
(c) Refusal to renew. -- The tax commissioner may refuse to
issue or renew a business registration certificate if the
registrant is delinquent in the payment of any tax administered by
the tax commissioner under article ten of this chapter or the
corporate license tax imposed by article twelve-c of this chapter,
until the registrant pays in full all
such the delinquent taxes
including interest and applicable additions to tax and penalties.
In his or her discretion and upon such terms as he or she may
specify, the tax commissioner may enter into an installment payment
agreement with such the taxpayer in lieu of the complete payment.
Failure of the taxpayer to fully comply with the terms of the
installment payment agreement shall render the amount remaining due
thereunder immediately due and payable and the tax commissioner may
suspend or cancel the business registration certificate in the
manner hereinbefore provided in this section.
(d) Refusal to renew due to delinquent personal property tax.
-- The tax commissioner shall refuse to issue or renew a business
registration certificate when informed in writing, signed by the
county sheriff, that personal property owned by the applicant and
used in conjunction with the business activity of the applicant is
subject to delinquent property taxes. The tax commissioner shall
forthwith notify the applicant that the commissioner will not act
upon the application until information is provided evidencing that
the taxes due are either exonerated or paid.
CHAPTER 11A. COLLECTION AND ENFORCEMENT OF PROPERTY TAXES.
ARTICLE 2. DELINQUENCY AND METHODS OF ENFORCING PAYMENT.
§11A-2-11. Delinquent lists; oath.
The sheriff, after ascertaining which of the taxes assessed in
his or her county are delinquent, shall, on or before the first day
of May next succeeding the year for which the taxes were assessed,
prepare the following delinquent lists, arranged by districts and
alphabetically by name of the person charged, and showing in
respect to each the amount of taxes remaining delinquent on April
thirtieth: (1) A list of property in the landbook improperly
entered or not ascertainable; (2) a list of other delinquent real
estate; and (3) a list of all other delinquent taxes: Provided,
That the list shall conclude with a notice, substantially as
follows: "Any person holding a West Virginia business registration
certificate under the authority of article twelve, chapter eleven
of this code who does not pay all delinquent personal property
taxes shall have his or her license to do business in this state
suspended until the delinquency is cured".
The sheriff on returning each list shall, at the foot thereof,
subscribe an oath, which shall be subscribed before and certified
by some person duly authorized to administer oaths, in
from form or
effect as follows:
I, ........, sheriff (or deputy sheriff or collector) of the
County of ........., do swear that the foregoing list is, to the best of my knowledge and belief, complete and accurate, and that I
have received none of the taxes listed therein.
Except for the oath, the
tax commissioner state auditor shall
prescribe the form of the delinquent lists.