SB 387 Text

Senate Bill No. 387
(By Senators Sprouse, Anderson, Ross, Kimble, Buckalew, Scott, Dugan, McKensie and Sharpe)
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[Introduced March 20, 1997; referred to the Committee
on the Judiciary; and then to the Committee on Finance.]
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A BILL to amend chapter eleven of the code of West Virginia, one thousand nine hundred thirty-one, as amended, by adding thereto a new article, designated article twenty-eight; and to amend chapter twenty-three of said code by adding thereto a new article, designated article two-a, all relating to small business tax and worker's compensation amnesty program for interest and penalties on delinquent taxes and premiums; legislative findings; authority to promulgate rules; and prohibition against future amnesty plans.

Be it enacted by the Legislature of West Virginia:
That chapter eleven of the code of West Virginia, one thousand nine hundred thirty-one, as amended, be amended by adding thereto a new article, designated article twenty-eight; and that chapter twenty-three of said code be amended by adding thereto a new article, designated article two-a, all to read as follows:
CHAPTER 11. TAXATION.
ARTICLE 28. SMALL BUSINESS TAX AMNESTY PROGRAM OF 1997.
§11-28-1. Legislative findings.
The Legislature finds that a one-time amnesty program which permits small businesses, as defined in this article, which are delinquent in paying their taxes, to pay back tax obligations without interest or penalty will have a positive effect on state revenues, on small businesses, and on the citizens of the state. The Legislature finds further that, while it has no tolerance for scofflaws, otherwise law-abiding operators of small businesses may have fallen behind in tax payments and be unable to pay both the taxes and the heavy interest and penalties attendant thereto. However, a program such as this should be a once-in-a-lifetime opportunity, and as such, the Legislature intends that this program not be repeated in the foreseeable future.
§11-28-2. Small business defined; small business tax amnesty program created; amnesty allowed on interest and penalties of delinquent taxes; taxes affected.
For purposes of this article, the term "small business" is defined as any business operating within the state, whether operating as a sole proprietorship, partnership or corporation, which employs one hundred persons or less. The general term "taxpayer," as used in this article, refers to the small business entity which owes any tax obligations to the state.
There is created the small business tax amnesty program of one thousand nine hundred ninety-seven. Notwithstanding any other sections of this code to the contrary, for all taxes delinquent on and after the first day of October, one thousand nine hundred ninety-seven, but before midnight on the thirty-first day of December, one thousand nine hundred ninety-seven, the taxpayer may elect to pay the taxes in full without the addition of interest or penalties.
This amnesty extends to all taxes imposed for any purpose by the state of West Virginia against a small business, whether designated in-state or out-of-state.
§11-28-3. Filing dates.
No amnesty for interest and penalties pursuant to this article shall be allowed unless the delinquent taxes are actually paid and in the possession of the state tax commissioner between and including the respective dates of the first day of October, one thousand nine hundred ninety-seven, and on the thirty-first day of December, one thousand nine hundred ninety-seven. Taxpayers not filing for amnesty as provided by this article within the time frame established under this section are deemed to have waived all claims for amnesty: Provided, That a taxpayer filing a timely claim for amnesty, accompanied by a completed return form as prescribed by the state tax commissioner and tax payment in full, may file an amended return form at a later date as allowed by rules promulgated pursuant to this article.
§11-28-4. Forms and instructions; maximum participation.
The state tax commissioner shall prescribe and make available forms for paying taxes pursuant to this article, with instructions for taxpayers, and every assessor and sheriff shall comply with all reasonable requests and rules of the state tax commissioner in order to encourage maximum participation of delinquent taxpayers under the provisions of this article.
§11-28-5. Tax commissioner to propose rules for legislative promulgation.
The state tax commissioner shall propose rules for legislative promulgation pursuant to article three, chapter twenty-nine-a of this code to effectuate the provisions of this article.
§11-28-6. Effective date; prohibition against future amnesty programs.
The provisions of this article shall be in effect on and between the first day of October, one thousand nine hundred ninety-seven and on the thirty-first day of December, one thousand nine hundred ninety-seven.
No other amnesty program affecting interest and penalties on taxes for small businesses may be implemented by statute or rule before the first day of January, two thousand twenty-two.
CHAPTER 23. WORKERS' COMPENSATION.
ARTICLE 2A. WORKERS' COMPENSATION DELINQUENT SMALL BUSINESS
AMNESTY PROGRAM OF 1997.
§23-2A-1. Legislative findings.
The Legislature finds that a one-time amnesty program which permits employers who operate small businesses, as defined in this article, and who are delinquent in paying premiums into the workers' compensation fund, to pay their back premium obligations without interest or penalty will have a positive effect on state revenues, on small businesses, and on the citizens of the state. The Legislature finds further that, while it has no tolerance for scofflaws, otherwise law-abiding operators of small businesses may have fallen behind in workers' compensation premiums and be unable to pay both the premiums and the heavy interest and penalties attendant thereto. However, a program such as this should be a once-in-a-lifetime opportunity, and as such, the Legislature intends that this program not be repeated in the foreseeable future.
§23-2A-2. Small business defined; workers' compensation delinquent small business amnesty program created; amnesty allowed on interest and penalties of delinquent premiums.
For purposes of this article, the term "small business" is defined as any business operating within the state, whether operating as a sole proprietorship, partnership or corporation, which employs one hundred persons or less. The general term "employer," as used in this article, refers to the small business entity which owes the workers' compensation obligation to the state.
There is created the workers' compensation delinquent small business amnesty program of one thousand nine hundred ninety-seven. Notwithstanding any other sections of this code to the contrary, for all premiums delinquent on and after the first day of October, one thousand nine hundred ninety-seven, but before midnight on the thirty-first day of December, one thousand nine hundred ninety-seven, the employer may elect to pay the premiums in full without the addition of interest or penalties.
This amnesty extends to all premiums imposed by the state of West Virginia against an employer pursuant to article two of this chapter.
§23-2A-3. Filing dates.
No amnesty for interest and penalties pursuant to this article shall be allowed unless the delinquent premiums are actually paid and in the possession of the commissioner of the bureau of employment programs between and including the respective dates of the first day of October, one thousand nine hundred ninety-seven and the thirty-first day of December, one thousand nine hundred ninety-seven. Employers not filing for amnesty as provided by this article within the time frame established under this section are deemed to have waived all claims for amnesty: Provided, That an employer filing a timely claim for amnesty, accompanied by a completed form as prescribed by the commissioner of the bureau of employment programs and premium payment in full, may file an amended form at a later date as allowed by rules promulgated pursuant to this article.
§23-2A-4. Forms and instructions.
The commissioner of the bureau of employment programs shall prescribe and make available forms for paying delinquent premiums pursuant to this article, with instructions for employers included.
§23-2A-5. Commissioner of the bureau of employment programs to propose rules for legislative promulgation.
The commissioner of the bureau of employment programs shall propose rules for legislative promulgation pursuant to article three, chapter twenty-nine-a of this code to effectuate the provisions of this article.
§23-2A-6. Effective date; prohibition against future amnesty programs.
The provisions of this article shall be in effect on and between the first day of October, one thousand nine hundred ninety-seven and the thirty-first day of December, one thousand nine hundred ninety-seven.
No other amnesty program affecting interest or penalties on workers' compensation premiums may be implemented by statute or rule before the first day of January, two thousand twenty-two.

NOTE: The purpose of this bill is to create the "Small Business Tax and Workers' Compensation Amnesty Programs of 1997." The programs would allow operators of small businesses to pay delinquent taxes, and would allow employers who operate small businesses to pay delinquent workers' compensation premiums on and between October 1, 1997 and December 31, 1997. If paid in full during this period, no penalties or interest would attach to the payments. The bill permits promulgation of rules regarding the program. The bill prohibits any other like amnesty programs for the next twenty-five years. The bill defines small business as any business employing one hundred employees or less.

These articles are new; therefore, strike-throughs and underscoring have been omitted.

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