Senate Bill No. 387
(By Senators Sprouse, Anderson, Ross, Kimble, Buckalew, Scott,
Dugan, McKensie and Sharpe)
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[Introduced March 20, 1997; referred to the Committee
on the Judiciary; and then to the Committee on Finance.]
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A BILL to amend chapter eleven of the code of West Virginia, one
thousand nine hundred thirty-one, as amended, by adding
thereto a new article, designated article twenty-eight; and
to amend chapter twenty-three of said code by adding thereto
a new article, designated article two-a, all relating to
small business tax and worker's compensation amnesty program
for interest and penalties on delinquent taxes and premiums;
legislative findings; authority to promulgate rules; and
prohibition against future amnesty plans.
Be it enacted by the Legislature of West Virginia:
That chapter eleven of the code of West Virginia, one
thousand nine hundred thirty-one, as amended, be amended by
adding thereto a new article, designated article twenty-eight; and that chapter twenty-three of said code be amended by adding
thereto a new article, designated article two-a, all to read as
follows:
CHAPTER 11. TAXATION.
ARTICLE 28. SMALL BUSINESS TAX AMNESTY PROGRAM OF 1997.
§11-28-1. Legislative findings.
The Legislature finds that a one-time amnesty program which
permits small businesses, as defined in this article, which are
delinquent in paying their taxes, to pay back tax obligations
without interest or penalty will have a positive effect on state
revenues, on small businesses, and on the citizens of the state.
The Legislature finds further that, while it has no tolerance for
scofflaws, otherwise law-abiding operators of small businesses
may have fallen behind in tax payments and be unable to pay both
the taxes and the heavy interest and penalties attendant thereto.
However, a program such as this should be a once-in-a-lifetime
opportunity, and as such, the Legislature intends that this
program not be repeated in the foreseeable future.
§11-28-2. Small business defined; small business tax amnesty
program created; amnesty allowed on interest and penalties of delinquent taxes; taxes affected.
For purposes of this article, the term "small business" is
defined as any business operating within the state, whether operating as a sole proprietorship, partnership or corporation,
which employs one hundred persons or less. The general term
"taxpayer," as used in this article, refers to the small business
entity which owes any tax obligations to the state.
There is created the small business tax amnesty program of
one thousand nine hundred ninety-seven. Notwithstanding any
other sections of this code to the contrary, for all taxes
delinquent on and after the first day of October, one thousand
nine hundred ninety-seven, but before midnight on the
thirty-first day of December, one thousand nine hundred
ninety-seven, the taxpayer may elect to pay the taxes in full
without the addition of interest or penalties.
This amnesty extends to all taxes imposed for any purpose
by the state of West Virginia against a small business, whether
designated in-state or out-of-state.
§11-28-3. Filing dates.
No amnesty for interest and penalties pursuant to this
article shall be allowed unless the delinquent taxes are actually
paid and in the possession of the state tax commissioner between
and including the respective dates of the first day of October,
one thousand nine hundred ninety-seven, and on the thirty-first
day of December, one thousand nine hundred ninety-seven.
Taxpayers not filing for amnesty as provided by this article within the time frame established under this section are deemed
to have waived all claims for amnesty: Provided, That a taxpayer
filing a timely claim for amnesty, accompanied by a completed
return form as prescribed by the state tax commissioner and tax
payment in full, may file an amended return form at a later date
as allowed by rules promulgated pursuant to this article.
§11-28-4. Forms and instructions; maximum participation.
The state tax commissioner shall prescribe and make
available forms for paying taxes pursuant to this article, with
instructions for taxpayers, and every assessor and sheriff shall
comply with all reasonable requests and rules of the state tax
commissioner in order to encourage maximum participation of
delinquent taxpayers under the provisions of this article.
§11-28-5. Tax commissioner to propose rules for legislative
promulgation.
The state tax commissioner shall propose rules for
legislative promulgation pursuant to article three, chapter
twenty-nine-a of this code to effectuate the provisions of this
article.
§11-28-6. Effective date; prohibition against future amnesty
programs.
The provisions of this article shall be in effect on and
between the first day of October, one thousand nine hundred ninety-seven and on the thirty-first day of December, one
thousand nine hundred ninety-seven.
No other amnesty program affecting interest and penalties
on taxes for small businesses may be implemented by statute or
rule before the first day of January, two thousand twenty-two.
CHAPTER 23. WORKERS' COMPENSATION.
ARTICLE 2A. WORKERS' COMPENSATION DELINQUENT SMALL BUSINESS
AMNESTY PROGRAM OF 1997.
§23-2A-1. Legislative findings.
The Legislature finds that a one-time amnesty program which
permits employers who operate small businesses, as defined in
this article, and who are delinquent in paying premiums into the
workers' compensation fund, to pay their back premium obligations
without interest or penalty will have a positive effect on state
revenues, on small businesses, and on the citizens of the state.
The Legislature finds further that, while it has no tolerance for
scofflaws, otherwise law-abiding operators of small businesses
may have fallen behind in workers' compensation premiums and be
unable to pay both the premiums and the heavy interest and
penalties attendant thereto. However, a program such as this
should be a once-in-a-lifetime opportunity, and as such, the
Legislature intends that this program not be repeated in the
foreseeable future.
§23-2A-2. Small business defined; workers' compensation
delinquent small business amnesty program created; amnesty allowed on interest and penalties of delinquent premiums.
For purposes of this article, the term "small business" is
defined as any business operating within the state, whether
operating as a sole proprietorship, partnership or corporation,
which employs one hundred persons or less. The general term
"employer," as used in this article, refers to the small business
entity which owes the workers' compensation obligation to the
state.
There is created the workers' compensation delinquent small
business amnesty program of one thousand nine hundred
ninety-seven. Notwithstanding any other sections of this code to
the contrary, for all premiums delinquent on and after the first
day of October, one thousand nine hundred ninety-seven, but
before midnight on the thirty-first day of December, one thousand
nine hundred ninety-seven, the employer may elect to pay the
premiums in full without the addition of interest or penalties.
This amnesty extends to all premiums imposed by the state of
West Virginia against an employer pursuant to article two of this
chapter.
§23-2A-3. Filing dates.
No amnesty for interest and penalties pursuant to this
article shall be allowed unless the delinquent premiums are
actually paid and in the possession of the commissioner of the
bureau of employment programs between and including the
respective dates of the first day of October, one thousand nine
hundred ninety-seven and the thirty-first day of December, one
thousand nine hundred ninety-seven. Employers not filing for
amnesty as provided by this article within the time frame
established under this section are deemed to have waived all
claims for amnesty: Provided, That an employer filing a timely
claim for amnesty, accompanied by a completed form as prescribed
by the commissioner of the bureau of employment programs and
premium payment in full, may file an amended form at a later date
as allowed by rules promulgated pursuant to this article.
§23-2A-4. Forms and instructions.
The commissioner of the bureau of employment programs shall
prescribe and make available forms for paying delinquent premiums
pursuant to this article, with instructions for employers
included.
§23-2A-5. Commissioner of the bureau of employment programs to
propose rules for legislative promulgation.
The commissioner of the bureau of employment programs shall
propose rules for legislative promulgation pursuant to article three, chapter twenty-nine-a of this code to effectuate the
provisions of this article.
§23-2A-6. Effective date; prohibition against future amnesty
programs.
The provisions of this article shall be in effect on and
between the first day of October, one thousand nine hundred
ninety-seven and the thirty-first day of December, one thousand
nine hundred ninety-seven.
No other amnesty program affecting interest or penalties on
workers' compensation premiums may be implemented by statute or
rule before the first day of January, two thousand twenty-two.
NOTE: The purpose of this bill is to create the "Small
Business Tax and Workers' Compensation Amnesty Programs of 1997."
The programs would allow operators of small businesses to pay
delinquent taxes, and would allow employers who operate small
businesses to pay delinquent workers' compensation premiums on
and between October 1, 1997 and December 31, 1997. If paid in
full during this period, no penalties or interest would attach to
the payments. The bill permits promulgation of rules regarding
the program. The bill prohibits any other like amnesty programs
for the next twenty-five years. The bill defines small business
as any business employing one hundred employees or less.
These articles are new; therefore, strike-throughs and
underscoring have been omitted.