Magazine article American Banker

West Virginia Legislature Considers Boosting Banks' Tax Bill by $5 Million

Magazine article American Banker

West Virginia Legislature Considers Boosting Banks' Tax Bill by $5 Million

Article excerpt

CHARLESTON, W.Va. -- A bill making its way through the West Virginia Legislature would require banks in this state to pay an extra $5 million in state-taxes.

Banks currently pay about $9 million in state taxes. State Tax Department projections indicate that the proposed changes in the law would increase that to $14 million next year.

The measure, which is a product of a citizen-lawmaker tax study commission's report, was introduced in the House of Delegates last week.

House finance committee Chairman George Farley, D-Wood, said that under the proposal, which has the blessings of the legislative leadership, banks would pay a franchise tax and a corporate net income tax.

About $4 million in taxes that banks previously paid the state was wiped out by voter passage of a 1984 amendment to the state constitution exempting intangible personal property from taxation, Mr. Farley said. The banks organized last year to actively support the amendment. Now the state is scrambling to recover that lost revenue, he said.

Mr. Farley, a member of the interim tax study commission, said four types of taxes are covered in the bill -- a franchise tax, a severance tax, a telecommunications tax, and a corporate net income tax. Banks would pay two of those four taxes.

The state already has a corporate net income tax. Mr. Farley said the rate would be increased from 7% to 9% on net profits.

The bill would do away with the present business and occupation tax, which taxes the right to do business in the state regardless of profits. …

Search by... Author
Show... All Results Primary Sources Peer-reviewed

Oops!

An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.