H. B. 4393
(By Delegate Walters)
[Introduced
February 10, 2004
; 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 §11-13U-1, §11-13U-2,
§11-13U-3, §11-13U-4 and §11-13U-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 tax and
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 §11-13U-1, §11-13U-2,
§11-13U-3, §11-13U-4 and §11-13U-5, all to read as follows:
ARTICLE 13U. SMALL BUSINESS DEVELOPMENT INCENTIVE PROGRAM FOR INTERNAL GROWTH ACT.
§11-13U-1. Short title.
This article may be cited as the "Small Business Development
Incentive Program for Internal Growth Act."
§11-13U-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
coverage.
§11-13U-3. Definitions.
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 tax and 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.
§11-13U-4. Exemption from requirement to pay business-related
taxes.
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
shall cease.
§11-13U-5. Commissioner of the department of tax and revenue to
propose rules.
The commissioner of the department of tax and 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."
Provisions of the bill include the following: (1) A short title;
(2) declaration of legislative findings; (3) definitions of certain
terms; (4) exemptions from certain business-related taxes required
by the state; and (5) requiring the commissioner of the department
of tax and revenue to propose legislative rules to implement the
purposes and provisions of the article.
This article is new; therefore, strike-throughs and
underscoring have been omitted.