Senate Bill No. 750
(By Senators Helmick, Plymale, Chafin, Prezioso,
Edgell, Love, Bailey, Bowman, McCabe, Unger, Sypolt,
Fanning, Facemyer, Boley, Sprouse and Guills)
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[Originating in the Committee on Finance;
reported February 26, 2007.]
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A BILL to amend and reenact §11-24-4 of the Code of West Virginia,
1931, as amended, relating to reducing the rate of corporation
net income tax.
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 the
thirtieth day of June, one thousand nine hundred sixty-seven, and
ending prior to the first day of January, one thousand nine hundred
eighty-three, 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 the
first day of January, one thousand nine hundred eighty-three, and
ending prior to the first day of July, one thousand nine hundred
eighty-seven, 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 fifty thousand dollars,
the rate of six percent; and
(B) On taxable income in excess of fifty thousand dollars, the
rate of seven percent.
(3) In the case of taxable periods beginning on or after the
first day of July, one thousand nine hundred eighty-seven, 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 the first day of July, one thousand
nine hundred eighty-eight, and on each first day of July 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 the first day of July, one thousand
nine hundred ninety-two.
(4) In the case of taxable periods beginning on or after the
first day of January, two thousand seven, 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 the
first day of January, two thousand eight, 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 one half percent. Beginning the
first day of January, two thousand nine, and on each first day of
January thereafter, the rate shall be reduced by one half of one percent per year, until such rate is six and one-half percent.
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(NOTE: The purpose of this bill is to gradually reduce the
corporate net income tax from 8.75 percent to 6.5 percent.)
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