H. B. 4395
(By Delegates Armstead, Hamilton, Sobonya,
Carmichael, Schoen, Ireland, Cowles,
Andes, Lane, Sumner and C. Miller)
[Introduced February 4, 2008; referred to the
Committee on Finance.]
A BILL to amend and reenact §11-23-6 of the Code of West Virginia,
1931, as amended, relating to abolishing the business and
franchise 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; abolishment.
(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 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 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 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 not apply to taxable years beginning on or after
the first day of January, one thousand nine hundred eighty-nine.
(2)
Taxable years after the thirty-first day of December, one
thousand nine hundred eighty-eight. -- 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 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 the thirtieth day of June, one
thousand nine hundred ninety-seven. -- 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 the thirty-first day of December, two
thousand six. -- For taxable years beginning on or after the first
day of January, two thousand seven, the amount of tax due under
this article shall be 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.
(5) Taxable years after the thirty-first day of December, two
thousand eight. -- For taxable years beginning on or after the
first day of January, two thousand nine, the amount of tax due
under this article shall be the greater of fifty dollars or 0.48
percent of the value of the tax base as determined under this
article.
(6) Taxable years after the thirty-first day of December, two
thousand nine. -- For taxable years beginning on or after the first
day of January, two thousand ten, the amount of tax due under this
article shall be the greater of fifty dollars or 0.41 percent of
the value of the tax base as determined under this article.
(7) Taxable years after the thirty-first day of December, two
thousand ten. -- For taxable years beginning on or after the first
day of January, two thousand eleven, the amount of tax due under
this article shall be the greater of fifty dollars or 0.34 percent of the value of the tax base as determined under this article.
(8) Taxable years after the thirty-first day of December, two
thousand eleven. -- For taxable years beginning on or after the
first day of January, two thousand twelve, the amount of tax due
under this article shall be the greater of fifty dollars or 0.27
percent of the value of the tax base as determined under this
article.
(9) Taxable years after the thirty-first day of December, two
thousand twelve. -- For taxable years beginning on or after the
first day of January, two thousand thirteen, the amount of tax due
under this article shall be the greater of fifty dollars or 0.20
percent of the value of the tax base as determined under this
article.
(5) Abolishment of tax. -- For taxable years beginning on or
after the first day of July, two thousand eight, the tax imposed by
the provisions of this article is abolished.
(c)
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 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 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 abolish the business
franchise tax effective July 1, 2008.
Strike-throughs indicate language that would be stricken from
the present law, and underscoring indicates new language that would
be added.