H. B. 2042
(By Delegate Blair)
[Introduced January 13, 2010; referred to the
Committee on Finance.]
A BILL to amend the Code of West Virginia, 1931, as amended, by
adding thereto a new section, designated as §11-23-29; and to
amend said code by adding thereto a new section, designated
§11-24-44, all relating to taxation; a credit for ad valorem
tax paid on manufacturing inventory, and other tangible
personal property which will reduce either or both the amount
of business franchise tax or corporate net income tax owed,
effective July 1, 2009.
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 section, designated
§11-23-29;
and that
said code be amended by adding thereto a new section, designated
§11-24-44, all to read as follows:
ARTICLE 23. BUSINESS FRANCHISE TAX.
§11-23-29. Credit for ad valorem taxation of manufacturing inventory, and other tangible personal property.
(1) Allowance of credit.--
In the case of taxable periods
beginning on or after July 1, 2009, every new incoming foreign
corporation, in its first year of business of which it is engaging
in business in this state or deriving income from property,
activity or other sources in this state, shall be allowed a
refundable credit against the taxes paid by this article equal to
the amount of ad valorem property taxes paid
on tangible personal
property
.
(2) Allowance of credit.
--
In the case of taxable periods
beginning on or after July 1, 2009, every
foreign or domestic
corporation, engaging in business in this state or deriving income
from property, activity or other sources in this state,
shall be
allowed a refundable credit against the taxes imposed by this
article equal to the amount of ad valorem property taxes paid
on
personal property for any new equipment purchased
over the previous
taxable year.
(3)Any remaining credit from tax paid under the provisions of
this section may be applied to any tax owed under the corporate net
income tax, as described in chapter eleven, section twenty four of
the Code of West Virginia, 1931, as amended.
(4) Legislative rule. --
The Tax Commissioner shall propose
rules for legislative approval in accordance with article 3,
chapter 29A, for implementation of this section.
ARTICLE 24. CORPORATION NET INCOME TAX.
§11-24-44. Credit for ad valorem taxation of manufacturing
inventory, and other tangible personal property.
(1) Allowance of credit.--
In the case of taxable periods
beginning on or after July 1, 2009, every new incoming foreign
corporation, in its first year of business of which it is engaging
in business in this state or deriving income from property,
activity or other sources in this state, shall be allowed a
refundable credit against the taxes paid by this article equal to
the amount of ad valorem property taxes paid
on tangible personal
property
.
(2) Allowance of credit.--
In the case of taxable periods
beginning on or after July 1, 2009, every
foreign or domestic
corporation, engaging in business in this state or deriving income
from property, activity or other sources in this state,
shall be
allowed a refundable credit against the taxes imposed by this
article equal to the amount of ad valorem property taxes paid
on
personal property for any new equipment purchased
over the previous
taxable year.
(3) Any remaining credit from tax paid under the provisions of
this section may be applied to any tax owed under the business
franchise tax, as described in chapter eleven, section twenty three
of the Code of West Virginia, 1931, as amended.
(4) Legislative rule.
--
The Tax Commissioner shall propose rules
for legislative approval in accordance with the provisions of
article 3, chapter 29A, for implementation of this section.
NOTE:
The purpose of this bill is to provide a
tax credit for
ad valorem tax paid on manufacturing inventory, and other tangible
personal property which will reduce either or both the amount of
business franchise tax or corporate net income tax owed
, effective
the tax year beginning July 1, 2009.
Strike-throughs indicate language that would be stricken from
the present law, and underscoring indicates new language that would
be added.