Senate Bill No. 557
(By Senator Boley)
[Introduced February 17, 2003; referred to the Committee on
Economic Development; and then to the Committee on Finance.]
A BILL to amend chapter eleven of the code of West Virginia, one
thousand nine hundred thirty-one, as amended, by adding
thereto a new article, designated article thirteen-t, relating
to taxation; and providing a small business tax abatement for
real and personal property for a period of five years on new
construction on improvements of one hundred fifty thousand
dollars or less.
Be it enacted by the Legislature of West Virginia:
That chapter eleven of the code of West Virginia, one thousand
nine hundred thirty-one, as amended, be amended by adding thereto
a new article, designated article thirteen-t, to read as follows:
ARTICLE 13T. SMALL BUSINESS PROPERTY TAX ABATEMENT.
§11-13T-1. Short title.
This article may be cited as the "West Virginia Small Business
Property Tax Abatement Act."
§11-13T-2. Small business property tax abatement.
(a) For the purposes of this article, a small business is any
corporation, partnership, sole proprietorship or other business
entity which has an annual payroll of one million five thousand
dollars or less, or annual gross sales of not more than five
million dollars. The tax commissioner may adjust these amounts
based on the cost-of-living index for that calendar year beginning
on the first day of January, two thousand four, and each subsequent
(b) Each small business formed under the laws of the state of
West Virginia and operating within the state is entitled to an
abatement of real and personal property taxes assessed and imposed
under the provisions of articles three, four and five of this
chapter on any new construction or improvements to existing
facilities made by that business the cost of which is one hundred
fifty thousand dollars or less.
(c) The abatement of real and personal taxes shall extend for
a period not to exceed five years from the completion of the new
construction or improvements to existing facilities by the small
business. The tax abatement may be claimed only one time within a
ten-year period from the date of new construction or improvements
to existing facilities by the small business that is actually
occupying and operating the business facility.
§11-13T-3. Tax commissioner to propose legislative rules; effective date.
(a) The tax commissioner shall propose rules for legislative
approval prescribing the method and documentation to be used to
claim the real and personal property tax abatement in accordance
with the provisions of article three, chapter twenty-nine of the
code. The commissioner may initially promulgate emergency rules in
order to facilitate the implementation of the provisions of this
(b) The abatement allowed by this section applies to tax years
beginning after the thirty-first day of December, two thousand
NOTE: The purpose of this bill is to give small businesses a
real and personal tax abatement for new construction or
improvements on existing facilities of $150,000.00 or less for a
period not to exceed 5 years.
This article is new; therefore, strike-throughs and
underscoring have been omitted.