SENATE CONCURRENT RESOLUTION NO. 17
(By Senators Chafin, Barnes and Minard)
Requesting the Joint Committee on Government and Finance study the
impact on state revenues from various tax-sheltering devices
used by national corporations doing business in this state.
Whereas,
On July 15, 2003, the Multistate Tax Commission
released a report entitled Corporate Tax Sheltering and the Impact
on State Corporate Income Tax Revenue Collections that showed state
corporate income taxes as a proportion of corporate profits
declined by 34 percent from approximately 9 percent during the
period from 1980 to 1989 to 5.9 percent in 2001; and
Whereas, Corporate tax sheltering reduced state corporate
income tax revenues by more than a third of actual collections in
2001 and, according to the report, West Virginia is listed as one
of the states with the highest percentage loss of revenue; and
Whereas, The lost revenue attributable to domestic and
international income tax sheltering is adding to the state's budget
deficits while undermining the equity and integrity of the state's
tax system; therefore, be it
Resolved by the Legislature of West Virginia:
That the Joint Committee on Government and Finance is hereby
requested to study the impact on state revenues from various
tax-sheltering devices used by national corporations doing business in this state; and, be it
Further Resolved, That the Joint Committee on Government and
Finance report to the regular session of the Legislature, 2007, on
its findings, conclusions and recommendations, together with drafts
of any legislation necessary to effectuate its recommendations;
and, be it
Further Resolved, That the expenses necessary to conduct this
study, to prepare a report and to draft necessary legislation be
paid from legislative appropriations to the Joint Committee on
Government and Finance.