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Introduced Version House Bill 2042 History

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Key: Green = existing Code. Red = new code to be enacted
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.
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