"Slicing A Shadow" West Virginia Style. Complex Changes In State Tax Rules

Summary

During the past three years, the West Virginia Legislature made numerous changes in the state’s corporation net income tax, some of which also affect the state’s business franchise tax. Many, but not all, of these changes first apply to taxable years beginning after December 31, 2008. The impetus for the major changes was the desire by the Legislature to minimize actions taken by some corporations to minimize their state tax liabilities, which actions had the effect of shifting income to jurisdictions in which they either were not subject to tax or paid a lower rate of tax. The side effect of these changes is to increase the complexity of the law and the filing requirements for even an affiliated group of small corporations engaged in multistate business activity that heretofore filed consolidated federal and state income tax returns.

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Spilman Thomas & Battle is a full-service law firm with more than 100 attorneys. Founded in 1864, Spilman has offices in Charleston, Morgantown and Wheeling, West Virginia; Pittsburgh, Pennsylvania; Winston-Salem, North Carolina and Roanoke, Virginia.