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Governor Tomblin announces elimination of Business Franchise Tax

Mountain Media, LLC by Mountain Media, LLC
January 8, 2015
in Business News
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Gov. Earl Ray Tomblin this week announced the Business Franchise Tax will be eliminated effective Jan. 1, 2015, the latest step in a series of reductions that have improved West Virginia’s business climate and led to new investments across the state.

“The Business Franchise Tax, created in 1987, was one of the taxes that made it difficult for West Virginia to compete for new and expanding businesses,” Gov. Tomblin said. “Coupled with the reduction in the Corporate Net Income Tax and the dramatic decrease in workers’ compensation rates, these changes have helped our state secure additional investments and will continue to pay dividends now and for years to come.”

West Virginia’s Corporate Net Income Tax-now 6.5 percent-is competitive nationally and lower than those found in multiple surrounding states. In addition, the Tax Foundation rated West Virginia 21st nationally for 2015, a dramatic change from the state’s No. 47 ranking in 2004, and higher than any neighboring state.

“I appreciate the hard work of then-Governor Joe Manchin and members of the West Virginia Legislature as we worked together to enact responsible reductions in our state’s business taxes,” Gov. Tomblin said. “We already have seen many benefits from these changes, and I’m confident our state’s economy and business climate will continue to grow far into the future.”

 

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