Senate Bill No. 751
(By Senators Helmick, Plymale, Chafin, Prezioso,
Edgell, Love, Bailey, Bowman, McCabe, Unger, Sypolt,
Fanning, Facemyer, Boley, Sprouse and Guills)
____________
[Originating in the Committee on Finance;
reported February 26, 2007.]
____________
A BILL to amend and reenact §11-23-6 of the Code of West Virginia,
1931, as amended, relating to phasing out business franchise
tax over seven years.
Be it enacted by the Legislature of West Virginia:
That §11-23-6 of the Code of West Virginia, 1931, as amended,
be amended and reenacted to read as follows:
ARTICLE 23. BUSINESS FRANCHISE TAX.
§11-23-6. Imposition of tax; change in rate of tax.
(a)
General. -- An annual business franchise tax is hereby
imposed on the privilege of doing business in this state and in
respect of the benefits and protection conferred. Such tax shall be
collected from every domestic corporation, every corporation having
its commercial domicile in this state, every foreign or domestic
corporation owning or leasing real or tangible personal property
located in this state or doing business in this state and from every partnership owning or leasing real or tangible personal
property located in this state or doing business in this state,
effective on and after the first day of July, one thousand nine
hundred eighty-seven.
(b)
Amount of tax and rate; effective date. --
(1) On and after the first day of July, one thousand nine
hundred eighty-seven, the amount of tax shall be the greater of
fifty dollars or fifty-five one hundredths of one percent of the
value of the tax base, as determined under this article:
Provided,
That when the taxpayer's first taxable year under this article is
a short taxable year, the taxpayer's liability shall be prorated
based upon the ratio which the number of months in which such short
taxable year bears to twelve:
Provided, however, That this
subdivision shall not apply to taxable years beginning on or after
the first day of January, one thousand nine hundred eighty-nine.
(2)
Taxable years after the thirty-first day of December, one
thousand nine hundred eighty-eight. -- For taxable years beginning
on or after the first day of January, one thousand nine hundred
eighty-nine, the amount of tax due under this article shall be the
greater of fifty dollars or seventy-five one hundredths of one
percent of the value of the tax base as determined under this
article.
(3)
Taxable years after the thirtieth day of June, one
thousand nine hundred ninety-seven. -- For taxable years beginning on or after the first day of July, one thousand nine hundred
ninety-seven, the amount of tax due under this article shall be the
greater of fifty dollars or seventy hundredths of one percent of
the value of the tax base as determined under this article.
(4)
Taxable years after the first day of January, two thousand
seven. -- For taxable years beginning on or after the first day of
January, two thousand seven, the amount of tax due under this
article shall be the greater of fifty dollars or fifty-five one
hundredths of one percent of the value of the tax base as
determined under this article.
(5) Taxable years after the first day of January, two thousand
eight. -- For taxable years beginning on or after the first day of
January, two thousand eight, the amount of tax due under this
article shall be the greater of fifty dollars or forty one
hundredths of one percent of the value of the tax base as
determined under this article. Beginning the first day of January,
two thousand nine, and on each first day of January thereafter for
four successive taxable years, the rate shall be reduced by six and
one-half one hundredths of one percent per year until there is no
tax due under this article.
(c)
Short taxable years. -- When the taxpayer's taxable year
for federal income tax purposes is a short taxable year, the tax
determined by application of the tax rate to the taxpayer's tax
base shall be prorated based upon the ratio which the number of months in such short taxable year bears to twelve:
Provided, That
when the taxpayer's first taxable year under this article is less
than twelve months, the taxpayer's liability shall be prorated
based upon the ratio which the number of months the taxpayer was
doing business in this state bears to twelve but in no event shall
the tax due be less than fifty dollars.
______
(NOTE: The purpose of this bill is to eliminate the business
franchise tax gradually over seven years.)
Email
Webmaster | © 2024 West Virginia Legislature **
