The bill seeks to amend the Code of West Virginia with a focus on supporting small businesses by increasing the income threshold for business licensing and tax exemptions. It raises the annual revenue limit for businesses exempt from business and occupation taxes and privilege taxes, and introduces the Small Business Protection Act, which aims to create more flexible regulatory approaches tailored to the unique challenges faced by small businesses. Notably, the bill deletes the maximum municipal business license tax amount of "twenty" dollars, replacing it with "20" dollars, and establishes that independent contractors and sole proprietors without a permanent physical location and with annual revenue under $10,000 are not required to obtain a municipal license.

Additionally, the bill outlines new requirements for obtaining a business registration certificate, mandating that it be carried in vehicles used for business activities. It raises the income threshold for exemption from registration and tax payments from $4,000 to $10,000, and specifies various exemptions for certain organizations and entities, including those qualifying for federal tax exemption. A $15 penalty is introduced for individuals who fail to obtain a registration certificate after notification by the Tax Commissioner, along with a compliance timeframe. Overall, the bill aims to streamline regulations and reduce the burden on small businesses in West Virginia.

Statutes affected:
Introduced Version: 11-12-3, 8-13-4, 8-13-5, 8-40-1, 8-40-2
Committee Substitute: 8-13-4, 8-13-5, 11-12-3, 8-40-1, 8-40-2
Engrossed Committee Substitute: 8-13-4, 8-13-5, 11-12-3, 8-40-1, 8-40-2