H. B. 4330
(By Delegate Louisos)
[Introduced February 1, 2006; referred to the
Committee on the Judiciary then Finance.]
A BILL to amend and reenact §4-1-18 of the Code of West Virginia,
1931, as amended; to amend said code by adding thereto a new
section, designated §11-21-4g; and to amend said code by
adding thereto a new section, designated §11-24-4b, all
relating to providing limitations on budget increases;
requiring eighty percent vote of House of Delegates for any
such increase; and providing that one half of budget increase
or surplus revenues in the General Revenue Fund remaining
after one half of the surplus or revenues have been set aside
for the revenue shortfall reserve fund shall be used to reduce
personal and corporate income tax rates.
Be it enacted by the Legislature of West Virginia:
That §4-1-18 of the Code of West Virginia, 1931, as amended,
be amended and reenacted; that said code be amended by adding
thereto a new section, designated §11-21-4g; and that said code be amended by adding thereto a new section, designated §11-24-4b, all
to read as follows:
CHAPTER 4. THE LEGISLATURE.
ARTICLE 1. OFFICERS, MEMBERS AND EMPLOYEES; APPROPRIATIONS;
INVESTIGATIONS; DISPLAY OF FLAGS; RECORDS; USE OF
CAPITOL BUILDING; PREFILING OF BILLS AND
RESOLUTIONS; STANDING COMMITTEES; INTERIM MEETINGS;
NEXT MEETING OF THE SENATE.
§4-1-18. Legislature to prepare digest of budget bill;
distribution.
(a) The Legislature, acting by its appropriate committees,
shall consider the budget bill, the budget document and matters
relating thereto, and following such consideration and upon the
passage of the budget bill by the Legislature, the Legislature
shall prepare a digest or summary of the budget bill containing
detailed information similar to that included in the budget
document submitted to the Legislature by the Governor but including
amendments of legislative committees, and as finally enacted by the
Legislature. Such The digest or summary shall be prepared at the
direction of and approved by members of the conferees committee on
the budget and shall be included in the journals of the Legislature
or printed as a separate document, and copies shall be furnished to
the Governor, Commissioner Secretary of Finance and Administration,
and the various state spending units for such use as may be deemed considered proper.
(b) Notwithstanding any other provision of law to the
contrary, the budget may not be increased by more than fifty
percent of any budget surplus and only then with a vote of eighty
percent of the members of the House of Delegates present and
entitled to vote. One half of the budget surplus shall be set
aside for the revenue shortfall fund as provided in section twenty,
article two, chapter five-a of this code and the other one half of
the surplus shall be used to lower the personal income and
corporate net income tax rates as provided in section four-g,
article twenty-one and section four-b, article twenty-four, chapter
eleven of this code.
CHAPTER 11. TAXATION.
ARTICLE 21. PERSONAL INCOME TAX.
§11-21-4g. Surplus revenues used to lower rate of tax.
Beginning on the first day of January, two thousand six, and
every four years thereafter, the personal income tax rate imposed
by this article shall be reduced by an amount proportionate to
sixty percent of the remaining surplus revenues accumulated in the
previous four fiscal years, if any, in the state fund, general
revenue, which are left over after surplus revenues have been set
aside for the revenue shortfall fund as provided in section twenty,
article two, chapter five-a of this code.
ARTICLE 24. CORPORATION NET INCOME TAX.
§11-24-4b. Surplus revenues used to lower rate of tax.
Beginning on the first day of January, two thousand six, and
every four years thereafter, the corporate income tax rate imposed
by this article shall be reduced by an amount proportionate to
forty percent of the remaining surplus revenues accumulated in the
previous four fiscal years, if any, in the state fund, general
revenue, which are left over after surplus revenues have been set
aside for the revenue shortfall fund as provided in section twenty,
article two, chapter five-a of this code.
NOTE: The purpose of this bill is to provide that surplus
revenues remaining in the General Revenue Fund after such revenues
have been set aside for the revenue shortfall reserve fund shall be
used to reduce personal and corporate income tax rates.
Strike-throughs indicate language that would be stricken from
the present law, and underscoring indicates new language that would
be added.
§§11-21-4g and 11-24-4b are new; therefore, strike-throughs
and underscoring have been omitted.