H. B. 2110
(By Delegates Walters, Harrison, Henderson and Webb) [Introduced January 14, 1998
; referred to the
Committee on Finance.]
A BILL to amend and reenact section one, article twenty-one,
chapter eleven of the code of West Virginia, one thousand
nine hundred thirty-one, as amended; to further amend said
article by adding thereto a new section, designated section
four-g; to amend and reenact section one, article
twenty-four of said chapter; and to further amend said
article by adding thereto a new section, designated section
four-b, all relating to legislative findings; and providing
for a ten percent tax reduction to all personal income and
corporate net income tax rates.
Be it enacted by the Legislature of West Virginia:
That section one, article twenty-one, chapter eleven of the
code of West Virginia, one thousand nine hundred thirty-one, as amended, be amended and reenacted; that said article be further
amended by adding thereto a new section, designated section
four-g; that section one, article twenty-four of said chapter be
amended and reenacted; and that said article be further amended
by adding thereto a new section, designated section four-b, all
to read as follows:
ARTICLE 21. PERSONAL INCOME TAX.
PART I. GENERAL.
§11-21-1. Legislative findings.
(a) The Legislature
hereby finds
and declares that the
adoption by this state for its personal income tax purposes of
the provisions of the laws of the United States relating to the
determination of income for federal income tax purposes will:
(1) Simplify preparation of state income tax returns by
taxpayers; (2) improve enforcement of the state income tax
through better use of information obtained from federal income
tax audits; and (3) aid interpretation of the state tax law
through increased use of federal judicial and administrative
determinations and precedents.
(b) The Legislature finds that tax policy is a legitimate
instrument for state government to utilize in efforts to
stimulate small business and that too often the tax policies in force have had an opposite effect.
(c) The Legislature recognizes that the level of poverty in
this state is among the highest in the country while per capita
income is among the lowest and that reducing the personal income
tax will serve to reverse these troubling statistical trends.
(d) The Legislature finds that an across the board income
tax cut of ten percent would stimulate the growth of small
business, help create jobs and render relief to those citizens of
this state who are in need of financial relief.
§11-21-4g. Ten percent income tax reduction.
For taxable years ending on and after the first day of July,
one thousand nine hundred ninety-seven, there shall be a ten
percent reduction in all personal income tax rates.
ARTICLE 24. CORPORATION NET INCOME TAX.
§11-24-1. Legislative findings.
(a) The Legislature finds
and declares that the adoption by
this state for its corporation net income tax purposes of certain
provisions of the laws of the United States relating to the
determination of income for federal income tax purposes will:
(1) Simplify preparation of state corporation net income tax
returns by taxpayers; (2) improve enforcement of the state
corporation net income tax through better use of information obtained from federal income tax audits; and (3) aid
interpretation of the state corporation net income tax law
through increased use of federal judicial and administrative
determinations and precedents.
(b) The Legislature finds that tax policy is a legitimate
instrument for state government to utilize in efforts to
stimulate small business and that too often the tax policies in
force have had an opposite effect.
(c) The Legislature recognizes that the level of
unemployment in this state is unacceptably high while per capita
income is among the lowest in the country and that reducing the
corporate net income tax will serve to reverse these troubling
statistical trends.
(d) The Legislature finds that an across the board income
tax cut of ten percent would stimulate the growth of small
business, help create jobs and render relief to those citizens of
this state who are in need of financial relief.
(e) The Legislature
does therefore declare declares that
this article
twenty-four be construed so as to accomplish the
foregoing purposes.
§11-24-4b. Ten percent reduction for all rates.
For taxable years ending on and after the first day of July, one thousand nine hundred ninety-seven, there shall be a ten
percent reduction in any corporate net income tax rate.
NOTE: This bill provides that all personal and corporate
taxpayers receive a ten percent across the board tax reduction.
It includes legislative findings that support the tax reductions.
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 are omitted.