West Virginia Code 11-23-6 – Imposition of tax; change in rate of tax
(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 July 1, 1987.
Terms Used In West Virginia Code 11-23-6
- commercial domicile: means the principal place from which the trade or business of the taxpayer is directed or managed: Provided, That the commercial domicile of a financial organization, which is subject to regulation as such, shall be at the place designated as its principal office with its regulating authority. See West Virginia Code 11-23-3
- Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
- corporation: includes any corporations, S corporation, joint-stock company and any association or other organization which is taxable as a corporation under federal income tax laws or the income tax laws of this state. See West Virginia Code 11-23-3
- doing business: means any activity of a corporation or partnership which enjoys the benefits and protection of the government and laws of this state, except the activity of agriculture and farming, which shall mean the production of food, fiber and woodland products (but not timbering activity) by means of cultivation, tillage of the soil and by the conduct of animal, livestock, dairy, apiary, equine or poultry husbandry, horticulture, or any other plant or animal production and all farm practices related, usual or incidental thereto, including the storage, packing, shipping and marketing, but not including any manufacturing, milling or processing of such products by persons other than the producer thereof. See West Virginia Code 11-23-3
- domestic corporation: means a corporation organized under the laws of this state, and certain corporations organized under the laws of the state of Virginia before June 20, 1863. See West Virginia Code 11-23-3
- Personal property: All property that is not real property.
- personal property: includes goods, chattels, real and personal, money, credits, investments, and the evidences thereof. See West Virginia Code 2-2-10
- state: means a state of the United States, the District of Columbia, the Commonwealth of Puerto Rico, or any territory or possession of the United States, and any foreign country or political subdivision thereof. See West Virginia Code 11-23-3
- taxable year: means the calendar year, or the fiscal year ending during such calendar year, upon the basis of which tax liability is computed under this article. See West Virginia Code 11-23-3
- taxpayer: means any person (as defined in this section) subject to the tax imposed by this article. See West Virginia Code 11-23-3
- this state: means the State of West Virginia. See West Virginia Code 11-23-3
- Value: means in the case of any document not a gift, the amount of the full actual consideration for the document, paid or to be paid, including the amount of any lien or liens assumed. See West Virginia Code 11-22-1
(b) Amount of tax and rate; effective date. —
(1) On and after July 1, 1987, the amount of tax shall be the greater of $50 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 January 1, 1989.
(2) Taxable years after December 31, 1988. — For taxable years beginning on or after January 1, 1989, the amount of tax due under this article shall be the greater of $50 or seventy-five one hundredths of one percent of the value of the tax base as determined under this article.
(3) Taxable years after June 30, 1997. — For taxable years beginning on or after July 1, 1997, the amount of tax due under this article shall be the greater of $50 or seventy hundredths of one percent of the value of the tax base as determined under this article.
(4) Taxable years after December 31, 2006. — For taxable years beginning on or after January 1, 2007, the amount of tax due under this article shall be the greater of $50 or fifty-five one hundredths of one percent of the value of the tax base as determined under this article.
(5) Taxable years after December 31, 2008. — For taxable years beginning on or after January 1, 2009, the amount of tax due under this article shall be the greater of $50 or forty-eight one hundredths of one percent of the value of the tax base as determined under this article.
(6) Taxable years after December 31, 2009. — For taxable years beginning on or after January 1, 2010, the amount of tax due under this article shall be the greater of $50 or forty-one one hundredths of one percent of the value of the tax base as determined under this article.
(7) Taxable years after December 31, 2010. — For taxable years beginning on or after January 1, 2011, the amount of tax due under this article shall be the greater of $50 or thirty-four one hundredths of one percent of the value of the tax base as determined under this article.
(8) Taxable years after December 31, 2011. — For taxable years beginning on or after January 1, 2012, the amount of tax due under this article shall be the greater of $50 or twenty-seven one hundredths of one percent of the value of the tax base as determined under this article.
(9) Taxable years after December 31, 2012. — For taxable years beginning on or after January 1, 2013, the amount of tax due under this article shall be the greater of $50 or twenty one hundredths of one percent of the value of the tax base as determined under this article.
(10) Taxable years after December 31, 2013. — For taxable years beginning on or after January 1, 2014, the amount of tax due under this article shall be the greater of $50 or ten one hundredths of one percent of the value of the tax base as determined under this article.
(11) Taxable years after December 31, 2014. — For taxable years beginning on or after January 1, 2015, there shall be no tax due under the provisions of this article.
(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 $50.