SB 397
Reducing corporate net income tax
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Sign in to take action- Introduced
- Passed Senate
- Passed House of Delegates
- To Governor
- Became Law
Bill overview
This bill proposes to gradually reduce the corporate net income tax rate in West Virginia. The current tax rates have been adjusted over time, with reductions scheduled for various years based on specific financial conditions. Specifically, the rate will be reduced to 3.25% beginning in 2027, subject to a suspension if the state’s reserve funds do not meet certain thresholds. This legislation aims to lower the tax burden on corporations operating within the state.
Key provisions
- The corporate net income tax rate will be reduced to 3.25% starting in 2027.
- The reduction in tax is contingent on the Revenue Fund Shortfall Reserve Fund and the Revenue Fund Shortfall Reserve Fund - Part B holding a combined balance of at least 10% of the General Revenue Fund.
- If the required fund balance is not met, the tax reduction will be suspended for one calendar year.
- Previous tax rate reductions were scheduled to decrease the rate from 9.75% to 6.5% over several years, also subject to suspension based on fund balances.
- The bill outlines specific tax rates for taxable periods beginning in 1967, 1983, 1987, 2007, 2009, 2012, 2013, and 2014.
- Corporations exempt under specific sections of the code are excluded from these rate reductions.
- The bill references specific sections of the West Virginia Code related to corporate income tax and reserve funds.
- The bill includes a note stating its purpose is to reduce the corporate net income tax.
Who is affected
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