Introduced Version
Senate Bill 534 History
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Key: Green = existing Code. Red = new code to be enacted
Senate Bill No. 534
(By Senators Sprouse, Guills and Unger)
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[Introduced February 8, 2006; referred to the Committee
on Finance.]
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A BILL to amend and reenact §11-23-6
of the Code of West
Virginia, 1931, as amended, relating to imposition of the
business franchise tax; and reduction and elimination of the
tax.
Be it enacted by the Legislature of West Virginia:
That §11-23-6 of the Code of West Virginia, 1931, as
amended, be amended and reenacted to read as follows:
ARTICLE 23. BUSINESS FRANCHISE TAX.
§11-23-6. Imposition of tax; change in rate of tax.
(a) General. -- An annual business franchise tax is hereby
imposed on the privilege of doing business in this state and in
respect of the benefits and protection conferred. Such The tax
shall be collected from every domestic corporation, every
corporation having its commercial domicile in this state, every
foreign or domestic corporation owning or leasing real or tangible personal property located in this state or doing
business in this state and from every partnership owning or
leasing real or tangible personal property located in this state
or doing business in this state, effective on and after the first
day of July, one thousand nine hundred eighty-seven.
(b) Amount of tax and rate; effective date. --
(1) On and after the first day of July, one thousand nine
hundred eighty-seven, the amount of tax shall be is the greater
of fifty dollars or fifty-five one hundredths of one percent of
the value of the tax base, as determined under this article:
Provided, That when the taxpayer's first taxable year under this
article is a short taxable year, the taxpayer's liability shall
be is prorated based upon the ratio which the number of months in
which such short taxable year bears to twelve: Provided,
however, That this subdivision shall may not apply to taxable
years beginning on or after the first day of January, one
thousand nine hundred eighty-nine.
(2) Taxable years after December 31, 1988. -- For taxable
years beginning on or after the first day of January, one
thousand nine hundred eighty-nine, the amount of tax due under
this article shall be is the greater of fifty dollars or seventy-
five one hundredths of one percent of the value of the tax base
as determined under this article.
(3) Taxable years after June 30, 1997. -- For taxable years beginning on or after the first day of July, one thousand nine
hundred ninety-seven, the amount of tax due under this article
shall be the greater of fifty dollars or seventy hundredths of
one percent of the value of the tax base as determined under this
article.
(4) Taxable years after June 30, 2007. - For taxable years
beginning on or after the first day of July, two thousand seven,
the amount of tax due under this article shall be reduced at the
beginning of each tax year by ten hundredths of one percent of
the value of the tax base as determined under this article. For
the taxable years beginning on or after the first day of July,
two thousand twelve, there shall be no tax due under this
article.
© Short taxable years. -- When the taxpayer's taxable year
for federal income tax purposes is a short taxable year, the tax
determined by application of the tax rate to the taxpayer's tax
base shall be is prorated based upon the ratio which the number
of months in such short taxable year bears to twelve: Provided,
That when the taxpayer's first taxable year under this article is
less than twelve months, the taxpayer's liability shall be is
prorated based upon the ratio which the number of months the
taxpayer was doing business in this state bears to twelve but in
no event shall the tax due be less than fifty dollars.
NOTE: The purpose of this bill is to gradually repeal the
business franchise tax.
Strike-throughs indicate language that would be stricken
from the present law and underscoring indicates new language that
would be added.