CHARLESTON, W.Va. (WV News) – Governor Jim Justice announced Thursday that he had tabled bill to legislature to reform the state’s corporate tax laws with the aim of making West Virginia a haven for remote workers from across the country.
The governor first announced the idea during this year’s State of the State speech.
“This legislation is a long overdue fundamental change and modernization of our corporate tax structure that is absolutely necessary if we are to move West Virginia forward,” Justice said in a press release. “I am so proud to bring this legislation up for review because it is a bold move to make West Virginia the most attractive state in the country for remote workers and all businesses, and that is exactly what we want to be.
“I am confident that the leadership of both the Senate and the House of Representatives understand its importance, and I sincerely hope that all members of the legislature will approve and pass this bill.”
The bill has been submitted for introduction to the West Virginia Legislature and is expected to be introduced in the coming days, according to publication.
If passed, the bill will modernize West Virginia’s corporate tax structure, creating incentives not only for remote workers but also for companies looking to conduct their operations in West Virginia.
If the bill is passed, the following changes will be made:
• Adopt model tax rules for the treatment of remote or mobile workers to remove barriers for remote workers in West Virginia;
• End the “throw away” rule in West Virginia that artificially increased the state income tax burden on certain companies.
• Moves this state from Origin Sourcing to Market Sourcing – brings us in line with and competitive with most jurisdictions in the US. and
• Adopts the Single Sales Factor apportionment, which means companies will no longer be penalized with West Virginia income taxes for having property or payrolls within the state.
The West Virginia Treasury Department anticipates that this legislation will be revenue neutral, even after taking into account all of the benefits that it will provide according to the press release.
West Virginia real estate and payroll companies will see their state income taxes decline. However, companies with no physical presence in West Virginia but selling to West Virginia, such as many online retailers, will see a slight increase in their state income taxes as the only factor will be West Virginia sales compared to that company’s national sales , according to the publication.
These are expected to balance each other out and make billing revenue neutral, while the changes in the bill to the state’s corporate tax structure will make the state much more competitive for businesses when they have their properties and employees within a 500 mile radius of two in West Resettling Virginia – one-third of the US population and one-third of the Canadian population, according to the publication.