Senate Bill No. 78
(By Senator Hunter)
____________
[Introduced January 9, 2008; referred to the Committee on
Finance.]
____________
A BILL to amend and reenact §11-12-5 of the Code of West Virginia,
1931, as amended, relating to prohibiting the Tax Commissioner
from issuing a new business registration certificate to any
new business owned, managed, operated by or in which any
person participated as a member of a board of directors,
partner, manager or member director of a business that is
delinquent in the payment of personal property taxes.
Be it enacted by the Legislature of West Virginia:
That §11-12-5 of the Code of West Virginia, 1931, as amended,
be amended and reenacted to read as follows:
ARTICLE 12. BUSINESS REGISTRATION TAX.
§11-12-5. Time for which registration certificate granted; power
of Tax Commissioner to suspend or cancel certificate;
refusal to renew.
(a) Registration period. -- All business registration certificates issued under the provisions of section four of this
article are for the period of one year beginning the first day of
July and ending the thirtieth day of the following June: Provided,
That beginning on or after the first day of July, one thousand nine
hundred ninety-nine, all business registration certificates issued
under the provisions of section four of this article shall be
issued for two fiscal years of this state, subject to the following
transition rule. If the first year for which a business was issued
a business registration certificate under this article began on the
first day of July of an even-numbered calendar year, then the Tax
Commissioner may issue a renewal certificate to that business for
the period beginning the first day of July, one thousand nine
hundred ninety-nine, and ending the thirtieth day of June, two
thousand, upon receipt of fifteen dollars for each such one-year
certificate. Thereafter, only certificates covering two fiscal
years of this state shall be issued.
(b) Revocation or suspension of certificate. --
(1) The Tax Commissioner may cancel or suspend a business
registration certificate at any time during a registration period
if:
(A) The registrant filed an application for a business
registration certificate, or an application for renewal thereof,
for the registration period that was false or fraudulent.
(B) The registrant willfully refused or neglected to file a tax return or to report information required by the Tax
Commissioner for any tax imposed by or pursuant to this chapter.
(C) The registrant willfully refused or neglected to pay any
tax, additions to tax, penalties or interest, or any part thereof,
when they became due and payable under this chapter, determined
with regard to any authorized extension of time for payment.
(d) The registrant neglected to pay over to the Tax
Commissioner on or before its due date, determined with regard to
any authorized extension of time for payment, any tax imposed by
this chapter which the registrant collects from any person and
holds in trust for this state.
(e) The registrant abused the privilege afforded to it by
article fifteen or fifteen-a of this chapter to be exempt from
payment of the taxes imposed by such articles on some or all of the
registrant's purchases for use in business upon issuing to the
vendor a properly executed exemption certificate, by failing to
timely pay use tax on taxable purchase for use in business, or by
failing to either pay the tax or give a properly executed exemption
certificate to the vendor.
(F) The registrant has failed to pay in full delinquent
personal property taxes owing for the calendar year immediately
preceding the calendar year in which the application is made.
(2) Before canceling or suspending any business registration
certificate, the Tax Commissioner shall give written notice of his or her intent to suspend or cancel the business registration
certificate of the taxpayer, the reason for the suspension or
cancellation, the effective date of the cancellation or suspension
and the date, time and place where the taxpayer may appear and show
cause why such business registration certificate should not be
canceled or suspended. This written notice shall be served on the
taxpayer in the same manner as a notice of assessment is served
under article ten of this chapter, not less than twenty days prior
to the date of the show cause informal hearing. The taxpayer may
appeal cancellation or suspension of its business registration
certificate in the same manner as a notice of assessment is
appealed under article ten-a of this chapter: Provided, That the
filing of a petition for appeal does not stay the effective date of
the suspension or cancellation. A stay may be granted only after
a hearing is held on a motion to stay filed by the registrant, upon
finding that state revenues will not be jeopardized by the granting
of the stay. The Tax Commissioner may, in his or her discretion
and upon such terms as he or she may specify, agree to stay the
effective date of the cancellation or suspension until another date
certain.
(3) On or before the first day of July, two thousand five, the
Tax Commissioner shall propose for promulgation legislative rules
establishing ancillary procedures for the Tax Commissioner's
suspension of business registration certificates for failure to pay delinquent personal property taxes pursuant to paragraph (F),
subdivision (1) of this section. The rules shall at a minimum
establish any additional requirements for the provision of notice
deemed necessary by the Tax Commissioner to meet requirements of
law; establish protocols for the communication and verification of
information exchanged between the Tax Commissioner, sheriffs and
others; and establish fees to be assessed against delinquent
taxpayers that shall be deposited into a special fund which is
hereby created and expended for general tax administration by the
Tax Division of the Department of Tax and Revenue and for operation
of the Tax Division. Upon authorization of the Legislature, the
rules shall have the same force and effect as if set forth herein.
No provision of this subdivision may be construed to restrict in any
manner the authority of the Tax Commissioner to suspend such
certificates for failure to pay delinquent personal property taxes
under paragraph (C) or (F), subdivision (1) of this section or under
any other provision of this code prior to the authorization of the
rules. If the Tax Commissioner has suspended a business
registration certificate for failure to pay delinquent personal
property taxes pursuant to paragraph (F), subdivision (1) of this
section, the Tax Commissioner may not issue a new business
registration certificate to any new business owned, managed,
operated by or in which any person participated as a member of a
board of directors, partner, manager or member director of a business that is delinquent in the payment of personal property
taxes.
(c) Refusal to renew. -- The Tax Commissioner may refuse to
issue or renew a business registration certificate if the registrant
is delinquent in the payment of any tax administered by the Tax
Commissioner under article ten of this chapter or the corporate
license tax imposed by article twelve-c of this chapter, until the
registrant pays in full all the delinquent taxes including interest
and applicable additions to tax and penalties. In his or her
discretion and upon such terms as he or she may specify, the Tax
Commissioner may enter into an installment payment agreement with
the taxpayer in lieu of the complete payment. Failure of the
taxpayer to fully comply with the terms of the installment payment
agreement shall render the amount remaining due thereunder
immediately due and payable and the Tax Commissioner may suspend or
cancel the business registration certificate in the manner provided
in this section.
(d) Refusal to renew due to delinquent personal property tax.
-- The Tax Commissioner shall refuse to issue or renew a business
registration certificate when informed in writing, signed by the
county sheriff, that personal property owned by the applicant and
used in conjunction with the business activity of the applicant is
subject to delinquent property taxes. The Tax Commissioner shall
forthwith notify the applicant that the commissioner will not act upon the application until information is provided evidencing that
the taxes due are either exonerated or paid.
NOTE: The purpose of this bill is to prohibit the Tax
Commissioner from issuing a new business registration certificate
to any new business owned, managed, operated by or in which any
person participated as a member of a board of directors, partner,
manager or member director of a business that is delinquent in the
payment of personal property taxes.
Strike-throughs indicate language that would be stricken from
the present law, and underscoring indicates new language that would
be added.