Senate Bill No. 269
(By Senators Tomblin, Mr. President, and Buckalew,
By Request of the Executive)
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[Introduced March 10, 1997; referred to
the Committee on Finance.]
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A BILL to amend and reenact section three, article twenty-four,
chapter eleven of the code of West Virginia, one thousand
nine hundred thirty-one, as amended, relating to updating
the meaning of certain terms used in the West Virginia
corporation net income tax act by bringing them into
conformity with their meanings for federal income tax
purposes; and specifying effective dates.
Be it enacted by the Legislature of West Virginia:
That section three, 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.
§11-24-3. Meaning of terms; general rule.
(a) Any term used in this article shall have the same meaning as when used in a comparable context in the laws of the United States relating to federal income taxes, unless a
different meaning is clearly required by the context or by
definition in this article. Any reference in this article to the
laws of the United States shall mean the provisions of the
Internal Revenue Code of 1986, as amended, and such other
provisions of the laws of the United States as relate to the
determination of income for federal income tax purposes. All
amendments made to the laws of the United States
after the
thirty-first day of December, one thousand nine hundred ninety- five, but prior to the first day of January,
one thousand nine
hundred ninety-six one thousand nine hundred ninety-seven, shall
be given effect in determining the taxes imposed by this article
for any taxable year beginning the first day of January, one
thousand nine hundred ninety-five, or thereafter to the same
extent those changes are allowed for federal income tax purposes,
whether such changes are retroactive or prospective, but no
amendment to the laws of the United States made on or after the
first day of January,
one thousand nine hundred ninety-six one
thousand nine hundred ninety-seven, shall be given any effect.
(b) The term "Internal Revenue Code of 1986" means the
Internal Revenue Code of the United States enacted by the
"Federal Tax Reform Act of 1986" and includes the provisions of
law formerly known as the Internal Revenue Code of 1954, as
amended, and in effect when the "Federal Tax Reform Act of 1986"
was enacted, that were not amended or repealed by the "Federal Tax Reform Act of 1986". Except when inappropriate, any
references in any law, executive order or other document:
(1) To the Internal Revenue Code of 1954 shall include
reference to the Internal Revenue Code of 1986; and
(2) To the Internal Revenue Code of 1986 shall include a
reference to the provisions of law formerly known as the Internal
Revenue Code of 1954.
(c)
Effective date. -- The amendments to this section
enacted in the year
one thousand nine hundred ninety-six one
thousand nine hundred ninety-seven shall be retroactive
and shall
apply to taxable years beginning on or after the first day of
January, one thousand nine hundred ninety-five one thousand nine
hundred ninety-six, to the extent allowable under federal income
tax law. With respect to taxable years that begin prior to the
first day of January,
one thousand nine hundred ninety-five one
thousand nine hundred ninety-six, the law in effect for each of
those years shall be fully preserved as to such year,
except as
provided in this section.
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(NOTE: The purpose of this bill is to update the meaning of
certain terms such as "federal taxable income" used in the West
Virginia Corporation Net Income Tax Act to bring them into
conformity with their meaning for federal income tax purposes.
Numerous federal changes enacted during 1996 are retroactive to
taxable years that began before January 1, 1996. This bill also
adopts those changes for West Virginia income tax purposes to the
same extent they are retroactive for federal income tax purposes.
Strike-throughs indicate language that would be deleted from current law. Underscoring indicates new language that would be
added.)
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FINANCE COMMITTEE AMENDMENT
Oon page _____three, section three, line _____thirteen, before the word
"one" by inserting the words "to the tax year beginning the first
day of January,".
Adopted
Rejected