Introduced Version
House Bill 2307 History
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Key: Green = existing Code. Red = new code to be enacted
H. B. 2307
(By Delegates Cowles, Hamilton, Andes, Howell, Pasdon,
Ellington, Azinger, Storch and Ireland)
[Introduced February 13, 2013; 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 corporation net income tax; and
reducing the tax rate to five and nine-tenths percent
effective January 1, 2013.
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, 2011, 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, 2011: 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 five and nine-tenths 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 reduce the corporation
net income tax rate to five and nine-tenths percent effective
January 1, 2013.
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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