West Virginia Business Franchise Tax Getting Nixed Jan. 1st
West Virginia is eliminating its business franchise tax starting January 1st.
Recently, the state started decreasing the tax annually under a plan approved by former Governor Joe Manchin, now a U.S. senator.
In 2009, the tax rate was initially reduced to 0.48 percent of a company's capital accumulation and stock value.
The 2014 business franchise tax rate is down to 0.1 percent, or 10 cents per $100 of taxable capital.
The tax started in 1987 at 0.55 percent and grew to 0.75 percent in 1989.
In a news release, Governor Earl Ray Tomblin said the tax made it difficult for West Virginia to compete for new and expanding businesses.
Revenue collections from those continued tax cuts have dropped during difficult state budget years.