H. B. 3316
(By Delegate Armstead)
[Introduced January 13, 2010; referred to the
Committee on Finance.]
A BILL to amend and reenact §11-24-4 of the Code of West Virginia,
1931, as amended, relating to decreasing the corporate income
tax rate beginning in the year 2012 by eliminating the higher
tax rate should the combined balance in the Revenue Fund
Shortfall Reserve Fund and the Revenue Fund Shortfall Reserve
Fund - Part B not equal or exceed ten percent of the General
Revenue Fund.
Be it enacted by the Legislature of West Virginia:
That §11-24-4 of the Code of West Virginia, 1931, as amended,
be amended and reenacted to read as follows:
ARTICLE 24. CORPORATION NET INCOME TAX.
§11-24-4. Imposition of primary tax and rate thereof; effective
and termination dates.
Primary tax. --
(1) In the case of taxable periods beginning after June 30,
1967, and ending prior to January 1, 1983, a tax is hereby imposed
for each taxable year at the rate of six percent per annum on the
West Virginia taxable income of every domestic or foreign
corporation engaging in business in this state or deriving income
from property, activity or other sources in this state, except
corporations exempt under section five.
(2) In the case of taxable periods beginning on or after
January 1, 1983, and ending prior to July 1, 1987, a tax is hereby
imposed for each taxable year on the West Virginia taxable income
of every domestic or foreign corporation engaging in business in
this state or deriving income from property, activity or other
sources in this state, except corporations exempt under section
five of this article, and any banks, banking associations or
corporations, trust companies, building and loan associations and
savings and loan associations, at the rates which follow:
(A) On taxable income not in excess of $50,000, the rate of
six percent; and
(B) On taxable income in excess of $50,000, the rate of seven
percent.
(3) In the case of taxable periods beginning on or after July
1, 1987, a tax is hereby imposed for each taxable year on the West
Virginia taxable income of every domestic or foreign corporation
engaging in business in this state or deriving income from property, activity or other sources in this state, except
corporations exempt under section five of this article, at the rate
of nine and three-quarters percent. Beginning July 1, 1988, and on
each July 1 thereafter for four successive calendar years, the rate
shall be reduced by fifteen one hundredths of one percent per year,
with such rate to be nine percent on and after July 1, 1992.
(4) In the case of taxable periods beginning on or after
January 1, 2007, a tax is hereby imposed for each taxable year on
the West Virginia taxable income of every domestic or foreign
corporation engaging in business in this state or deriving income
from property, activity or other sources in this state, except
corporations exempt under section five of this article, at the rate
of eight and three-quarters percent.
(5) In the case of taxable periods beginning on or after
January 1, 2009, a tax is hereby imposed for each taxable year on
the West Virginia taxable income of every domestic or foreign
corporation engaging in business in this state or deriving income
from property, activity or other sources in this state, except
corporations exempt under section five of this article, at the rate
of eight and one-half percent.
(6) In the case of taxable periods beginning on or after
January 1, 2012, a tax is hereby imposed for each taxable year on
the West Virginia taxable income of every domestic or foreign
corporation engaging in business in this state or deriving income from property, activity or other sources in this state, except
corporations exempt under section five of this article, at the rate
of seven and three-quarters percent.
Provided, That the reduction
in tax authorized by this subsection shall be suspended if the
combined balance of funds as of June 30, two thousand eleven, in
the Revenue Fund Shortfall Reserve Fund and the Revenue Fund
Shortfall Reserve Fund - Part B established in section twenty,
article two, chapter eleven-b of this code does not equal or exceed
ten percent of the General Revenue Fund budgeted for the fiscal
year commencing July 1, two thousand eleven: Provided, however,
That the rate reduction schedule will resume in the calendar year
immediately following any subsequent fiscal year when the combined
balance of funds as of June 30 of that fiscal year in the Revenue
Fund Shortfall Reserve Fund and the Revenue Fund Shortfall Reserve
Fund - Part B next equals or exceeds ten percent of the General
Revenue Fund budgeted for the immediately succeeding fiscal year
(7) In the case of taxable periods beginning on or after
January 1, 2013, a tax is hereby imposed for each taxable year on
the West Virginia taxable income of every domestic or foreign
corporation engaging in business in this state or deriving income
from property, activity or other sources in this state, except
corporations exempt under section five of this article, at the rate
of seven percent.
Provided, That the reduction in tax authorized
by this subsection shall be suspended for one calendar year subsequent to the occurrence of the suspension of the reduction in
tax authorized by subdivision (6) of this section: Provided,
however, That the reduction in tax on the first day of any calendar
year authorized by this subsection shall be suspended if the
combined balance of funds as of June 30 of the preceding year in
the Revenue Fund Shortfall Reserve Fund and the Revenue Fund
Shortfall Reserve Fund - Part B established in section twenty,
article two, chapter eleven-b of this code does not equal or exceed
ten percent of the General Revenue Fund budgeted for the fiscal
year commencing July 1, of the preceding year
(8) In the case of taxable periods beginning on or after
January 1, 2014, a tax is hereby imposed for each taxable year on
the West Virginia taxable income of every domestic or foreign
corporation engaging in business in this state or deriving income
from property, activity or other sources in this state, except
corporations exempt under section five of this article, at the rate
of six and one-half percent.
Provided, That the reduction in tax
authorized by this subsection shall be suspended for one calendar
year subsequent to the occurrence of the suspension of the
reduction in tax authorized by subdivision (7) of this section:
Provided, however, That the reduction in tax on the first day of
any calendar year authorized by this subsection shall be suspended
if the combined balance of funds as of June 30 of the preceding year in the Revenue Fund Shortfall Reserve Fund and the Revenue
Fund Shortfall Reserve Fund - Part B established in section twenty,
article two, chapter eleven-b of this code does not equal or exceed
ten percent of the General Revenue Fund budgeted for the fiscal
year commencing July 1, of the preceding year
NOTE: The purpose of this bill is to decrease the corporate
income tax rate beginning in the year 2012 by eliminating the
higher tax rate should the combined balance in the Revenue Fund
Shortfall Reserve Fund and the Revenue Fund Shortfall Reserve Fund
- Part B not equal or exceed ten percent of the General Revenue
Fund.
Strike-throughs indicate language that would be stricken from
the present law, and underscoring indicates new language that would
be added.