Source: http://www.wvlegislature.gov/Bill_Status/bills_text.cfm?billdoc=hb104%20intr.htm&yr=2017&sesstype=1X&i=104
Timestamp: 2018-03-23 18:47:41
Document Index: 510258508

Matched Legal Cases: ['§11', '§11', '§11', '§11', '§11', '§11', '§11', '§11', '§11', '§11', '§11', '§11', '§11', '§11', '§11', '§11', '§11', '§11', '§11', '§11', '§11', '§11', '§11', '§11', '§11', '§11', '§11', '§11', '§11', '§11', '§11']

A BILL to amend the Code of West Virginia, 1931, as amended by adding thereto two new sections, designated §11-13A-3f and §11-13A-3g; to amend and reenact §11-15-3, §11-15-9, §11-15-9b and §11-15-9h of said code; to amend said code by adding thereto a new section, designated §11-15-3d; to amend and reenact §11-15A-2 of said code; to amend and reenact §11-21-8a and §11-21-8e of said code; to amend said code by adding thereto three new sections, designated §11-21-4g, §11-21-4h and §11-21-12j; to amend and reenact §11-24-23a of said code; to amend said code by adding thereto a new section, designated §11-24-4c, all relating generally to taxation; imposing graduated rate severance tax on privilege of producing coal as of specified date; imposing graduated rate severance tax on privilege of producing natural gas as of specified date; increasing rate of consumers sales and service tax as of specified date; imposing tax on telecommunication services and ancillary telecommunication services as of specified date; eliminating certain exemptions from consumers sales and service tax as of specified date; increasing rate of use tax as of specified date; reducing number of classifications and rates of personal income tax as of January 1, 2018; providing for phase-out of personal income tax and specifying triggering event; imposing temporary additional income tax on persons with West Virginia taxable incomes of $300,000 or more as of specified date; exempting military retirement income from personal income tax after specified date; increasing amount of credit allowed against personal and corporation net income taxes for qualified rehabilitation expenditures made after specified date; temporarily increasing rate of corporation net income tax; and making technical corrections in various sections.
That the Code of West Virginia, 1931, as amended, be amended, by adding thereto two new sections, designated §11-13A-3f and §11-13A-3g; that §11-15-3, §11-15-9, §11-15-9b and §11-15-9h of said code be amended and reenacted; that said code be amended by adding thereto a new section, designated §11-15-3d; that §11-15A-2 of said code be amended and reenacted; that §11-21-8a and §11-21-8e of said code be amended and reenacted; that said code be amended by adding thereto three new sections, designated §11-21-4g, §11-21-4h and §11-21-12j; that §11-24-23a of said code be amended and reenacted; and that said code be amended by adding thereto a new section, designated §11-24-4c, all to read as follows:
(a) Notwithstanding the provisions of section three of this article, the rate of tax on the privilege of engaging or continuing within this state in the business of severing, extracting, reducing to possession, and producing coal for sale, profit or commercial use shall, for all tons of coal produced on and after July 1, 2017, is as follows. The basis of the tax is per ton revenue based on FOB mine realizations in the rail car or truck:
These rates include the thirty-five one hundredths of one cent additional severance tax imposed by the state for the benefit of counties and municipalities as provided in section six of this article. The rate of tax for each reporting period shall be determined by dividing the gross income of the taxpayer from sales of all coal metallurgical coal, except thin seam coal, during the reporting period, by tons of all metallurgical grade coal, except thin seam coal, sold by the taxpayer during the reporting period; and
$66 per ton but less than $74 per ton .................................................. 8.0%
$74 or more per ton ............................................................................ 10.0%
These rates include the thirty-five one hundredths of one percent additional severance tax imposed by the state for the benefit of counties and municipalities as provided in section six of this article.
§11-13A-3g. Severance tax on privilege of producing natural gas after June 30, 2017.
(a) Notwithstanding the provisions of section three-a of this article, the rate of tax on the privilege of engaging or continuing within this state in the business of severing, extracting, reducing to possession and producing coal for sale, profit or commercial use shall, for all MCFs of gas produced on and after July 1, 2017, be as follows:
Of natural gas per MCF is :................................................. The rate of tax is:
Less than $3.00 .................................................................................... 5.0%
$3.00 but less than $3.50 ..................................................................... 5.5%
$3.50 but less than $4.00 ..................................................................... 6.0%
$4.00 but less than $4.50 ..................................................................... 6.5%
$4.50 but less than $5.00 ..................................................................... 7.0%
$5.00 but less than $5.50 ..................................................................... 8.0%
$5.50 but less than $6.00 ..................................................................... 9.0%
$6.00 or more ........................................................................................ 10%
(b) In the event that subsection (a) of this section is found by a court of competent jurisdiction to violate either the Constitution of this state or of the United States, and that decision becomes final, this section shall become null and void by operation of law and the tax due shall be determined under section three-a of this article for the tax year or years involved in the litigation and all subsequent years.
(a) For taxable years beginning on and after January 1, 2018, the tax imposed by section three of this article shall be determined under either subsection (b) or subsection (c) of this section, as appropriate.
(b) Rate of tax on individuals (except married individuals filing separate returns), individuals filing joint returns, heads of households, estates and trusts. -- The tax imposed by section three of this article on the West Virginia taxable income of every individual (except married individuals filing separate returns); every individual who is a head of a household in the determination of his or her federal income tax for the taxable year; every husband and wife who file a joint return under this article; every individual who is entitled to file his or her federal income tax return for the taxable year as a surviving spouse; and every estate and trust shall be determined in accordance with the following table:
Not over $20,000 2.0% of taxable income
Over $20,000 but not over $35,000 $400.00 plus 3.7% of taxable income over $20,000
Over $35,000 $955.00 plus 5.6% of taxable income over $35,000
(c) Rate of tax on married individuals filing separate returns. -- In the case of husband and wife filing separate returns under this article for the taxable year, the tax imposed by section three of this article on the West Virginia taxable income of each spouse shall be determined in accordance with the following table:
Not over $10,000 2.0% of taxable income
Over $10,000 but not over $17,500 $200.00 plus 3.7% of taxable income over $10,000
Over $17,500, $477.50 plus 5.6% of taxable income over $17,500
(d) Tax rate reduction in years subsequent to 2019. – (1) For purposes of this subsection (d),
(A) “Trigger index” means the cumulative rate of change in not seasonally adjusted federal Consumer Price Index for All Urban Consumers plus 1.5 percent per year over a five-year period ending in June of each year.
(B) “General Revenue Fund benchmark” means the General Revenue Fund revenue collections as of June 30 of the fiscal year ended five years prior.
(C) “Prospective General Revenue Fund revenue collections” means the General Revenue Fund benchmark inflated by the trigger index as prescribed in this section.
(D) “Actual General Revenue Fund revenue collections” means the actual net collections of the General Revenue Fund as of June 30 of the fiscal year immediately preceding the August 1 calculation.
(E) “Current analysis period” means the August 1 calculation of the factors as prescribed in this section for any given year.
(2) Beginning on August 1, 2017, and on each August 1 thereafter, the Tax Commissioner shall determine the following:
(A) The “General Revenue Fund benchmark” for the current analysis period;
(B) The “trigger index” by adding one to the percentage difference between the Consumer Price Index for All Urban Consumers for June of the current year and June of five years prior, then increasing this base by 1.5 percent per year over five years;
(C) The “prospective General Revenue Fund revenue collections” for the current fiscal year by multiplying the General Revenue Fund benchmark as of June 30 of the fiscal year ended five years prior by the trigger index.
(D) The “actual General Revenue Fund revenue collections” for the current analysis period.
(3) If for any fiscal year ending after July 1, 2016, in which the prospective General Revenue Fund revenue collections are less than the actual General Revenue Fund revenue collections, then the personal Income tax rates specified in subsections (b) and (c) of this section shall be reduced by 0.1 percentage points for the calendar tax year, that begins seventeen months after the August 1 determination date specified in subdivision (2) of this subsection (d). Compliance with the August 1 determination date shall continue each year until the personal income tax is fully eliminated.
NOTE: The purpose of this bill is to provide increased funding for the General Revenue Fund by imposing severance tax on the privilege of producing coal and natural gas at graduated rates after June 30, 2017; increasing the rate of the consumers sales and service tax and use tax to 7 percent beginning July 1, 2017; imposing sales and use taxes on telecommunication services and ancillary telecommunication services beginning July 1, 2017. Eliminating exemptions from sales tax as of July 1, 2017, for services provided by health and fitness clubs and providers of primary opinion research and making technical corrections; exempting military retirement from personal income tax after December 31, 2018; imposing a temporary additional personal income tax on persons with West Virginia taxable incomes of $300,000 or more; collapsing the number of bracket in the personal income tax, specifying new rates of tax for taxable years beginning on and after specified first day of January 1, 2019 and providing for phase-out of personal income tax over period of years when certain conditions exist. The credits against personal and corporation net income taxes for qualified rehabilitation expenditures made after December 31, 2017 are increased; rules are provided for claiming credit and for disallowance of credit. The rate of the corporation net income tax is temporarily increased to 7.5 percent for taxable years beginning on or after January 1, 2018 but before January 1, 2020.