H. B. 2671
(By Delegate Rowe)
[Introduced February 23, 1995; referred to the Committee
on the Judiciary.]

A BILL to amend and reenact section five, article twelve, chapter eleven of the code of West Virginia, one thousand nine hundred thirty-one, as amended, relating to business registration certificates; effective periods, revocation, suspension and refusal to renew certificates; and requirement that all delinquent personal and real property taxes be paid prior to issuance or renewal of certificate.

Be it enacted by the Legislature of West Virginia:
That section five, article twelve, 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 12. BUSINESS REGISTRATION TAX.

§11-12-5. Time for which registration certificate granted; power of tax commissioner to suspend or cancel certificate; refusal to renew; payment of delinquent property taxes.

(a) Registration year. -- All business registration certificates issued under the provisions of section four of this article shall be for the period of one year beginning the first day of July and ending the thirtieth day of the following June.
(b) Revocation or suspension of certificate.
(1) The tax commissioner may cancel or suspend a business registration certificate at any time during a registration year if:
(A) The registrant filed an application for a business registration certificate, or an application for renewal thereof, for the registration year that was false or fraudulent.
(B) The registrant willfully refused or neglected to file a tax return or to report information required by the tax commissioner for any tax imposed by or pursuant to this chapter.
(C) The registrant willfully refused or neglected to pay any tax, additions to tax, penalties or interest, or any part thereof, when they became due and payable under this chapter, determined with regard to any authorized extension of time for payment.
(D) The registrant neglected to pay over to the tax commissioner on or before its due date, determined with regard to any authorized extension of time for payment, any tax imposed by this chapter which the registrant collects from any person and holds in trust for this state.
(E) The registrant abused the privilege afforded to it by article fifteen or fifteen-a of this chapter to be exempt from payment of the taxes imposed by such articles on some or all of the registrant's purchases for use in business upon issuing to the vendor a properly executed exemption certificate, by failing to timely pay use tax on taxable purchase for use in business, or by failing to either pay the tax or give a properly executed exemption certificate to the vendor.
(2) Before cancelling or suspending any such certificate, the tax commissioner shall give written notice of his intent to suspend or cancel the business registration certificate of the taxpayer, the reason for the suspension or cancellation, the effective date of the cancellation or suspension, and the date, time and place where the taxpayer may appear and show cause why such business registration certificate should not be canceled or suspended. This written notice shall be served on the taxpayer in the same manner as a notice of assessment is served under article ten of this chapter, not less than twenty days prior to the date of such show cause informal hearing. The taxpayer may appeal cancellation or suspension of its business registration certificate in the same manner as a notice of assessment is appealed under article ten of this chapter: Provided, That the filing of a petition for appeal shall not stay the effective date of the suspension or cancellation. A stay may be granted only after a hearing is held on a motion to stay filed by the registrant, upon finding that state revenues will not be jeopardized by the granting of the stay. The tax commissioner may, in his discretion and upon such terms as he may specify, agree to stay the effective date of the cancellation or suspension until another date certain.
(c) Refusal to renew. -- The tax commissioner may refuse to issue or renew a business registration certificate if the registrant is delinquent in the payment of any tax administered by the tax commissioner under article ten of this chapter or the corporate license tax imposed by this article, until the registrant pays in full all such delinquent taxes including interest and applicable additions to tax and penalties. In his discretion and upon such terms as he may specify, the tax commissioner may enter into an installment payment agreement with such taxpayer in lieu of the complete payment. Failure of the taxpayer to fully comply with the terms of the installment payment agreement shall render the amount remaining due thereunder immediately due and payable and the tax commissioner may suspend or cancel the business registration certificate in the manner hereinbefore provided.
(d) Payment of real and personal property taxes required. -- The tax commissioner shall refuse to issue or renew a business registration certificate if the applicant or registrant is delinquent in the payment of any real or personal property tax subject to collection pursuant to the provisions of chapter eleven-a of this code until the applicant or registrant pays in full all such delinquent taxes and interest and penalties applicable thereto. Each application for a business registration certificate shall be accompanied by receipts or other proof in form approved by the tax commissioner that all payable real and personal property taxes, including any applicable interest and penalties thereon, arising out of all business activities of the applicant have been paid in full.

NOTE: The purpose of this bill is to require businesses in this State to remain current in their payment of their personal and real property taxes at the county level. Currently, a business registration certificate may be denied if a business fails to pay other taxes administered by the Tax Commissioner. This bill will require the denial of the certificate if the business fails to pay its personal and real property taxes.