H. B. 2554
(By Delegate Walters)
[Introduced February 21, 2005; referred to the
Committee on Industry and Labor, Economic Development and
Small Business then Finance.]
A BILL to amend the Code of West Virginia, 1931, as amended, by
adding thereto a new article, designated §11-13W-1, §11-13W-2,
§11-13W-3, §11-13W-4 and §11-13W-5, all relating to the "Small
Business Development Incentive Program for Internal Growth
Act"; providing a short title; declaring legislative findings;
providing definitions of certain terms; providing exemptions
from certain business-related taxes required by the state; and
requiring the Commissioner of the Department of Revenue to
propose legislative rules to implement the purposes and
provisions of the article.
Be it enacted by the Legislature of West Virginia:
That the Code of West Virginia, 1931, as amended, be amended
by adding thereto a new article, designated §11-13W-1, §11-13W-2,
§11-13W-3, §11-13W-4 and §11-13W-5, all to read as follows:
ARTICLE 13W. SMALL BUSINESS DEVELOPMENT INCENTIVE PROGRAM FOR INTERNAL GROWTH ACT.
§11-13W-1. Short title.
This article may be cited as the "Small Business Development
Incentive Program for Internal Growth Act."
§11-13W-2. Legislative findings.
The Legislature finds that the encouragement of the location
of new businesses in this state, and the expansion and growth of
new businesses in the state is in the public interest and promotes
the general welfare of this state. The Legislature further finds
that during the start-up phase of a new business, it is
particularly financially difficult for the business to grow and
survive due to limited assets and resources in combination with
significant liabilities and debt burdens necessarily incurred and
which exist requiring repayment. This financial difficulty is
further exacerbated by the significant business-related tax burden
that exists beyond the required payments of amounts necessary to
maintain workers' compensation and unemployment compensation
For purposes of this article:
(a) "Small business" means any legal business, other than one
directly related to the gambling industry, in which the owner or
owners have been residents of the state for one year, the owner of
the business has no other out-of-state business locations involving similar businesses, and the business employs no more than fifty
employees and no other businesses of its nature exists in the
county or municipality where the business is to locate; and
(b) "Business related tax" means any tax otherwise required by
the Department of Revenue of this state, with the exception of
personal income tax, workers' compensation quarterly premiums or
unemployment compensation premiums, which is required as a direct
result of doing business in this state.
§11-13W-4. Exemption from requirement to pay business-related
Within three months from inception of initial operations of a
qualified small business, the owner of the business may apply to
the State Tax Department for qualification status to participate as
a small business and receive the exemptions from business-related
taxes as provided herein. The Tax Department shall design, cause
to be made, and provide upon request, application forms to be used
by applicant businesses. Upon qualifying to participate in the
Small Business Development Incentive Program for Internal Growth
Act, a business is exempted from the payment of any business
related tax with the exception of being required to pay appropriate
calculated sums required to maintain workers' compensation and
unemployment compensation coverage. Upon the completion of five
years of operation, or the employment of more than fifty employees,
whichever occurs first, a business qualification status under the favorable treatment provided under the provisions of this article
§11-13W-5. Commissioner of the Department of Revenue to propose
The Commissioner of the Department of Revenue shall propose
legislative rules in accordance with the provisions of article
three, chapter twenty-nine-a of this code, designed to implement
the provisions and purposes of this article.
NOTE: The purpose of this bill is to create the "Small
Business Development Incentive Program for Internal Growth Act."
The bill exempts certain small businesses from paying
business-related taxes if they qualify as start up businesses with
This article is new; therefore, strike-throughs and
underscoring have been omitted.