H. B. 4686
(By Delegates Michael, Kelley, Warner,
Pettit, Doyle, Miller and Facemyer)
(Originating in the Committee on Finance)
[February 27, 1998]
A BILL to amend article fifteen, chapter eleven of the code of
West Virginia, one thousand nine hundred thirty-one, as
amended, by adding thereto a new section, designated section
seven-a; and to amend article fifteen-a of said chapter by
adding thereto a new section, designated section two-b, all
relating to consumers sales and service and use tax on sales
and installation of modular dwellings.
Be it enacted by the Legislature of West Virginia:
That article fifteen, chapter eleven of the code of West
Virginia, one thousand nine hundred thirty-one, as amended, be
amended by adding thereto a new section, designated section
seven-a; and that article fifteen-a of said chapter be amended by
adding thereto a new section, designated section two-b, all to
read as follows:
ARTICLE 15. CONSUMERS SALES TAX.
§11-15-7a. Tax on the manufacture, sale and installation of
modular dwellings.
(a) Notwithstanding the provisions of section seven of this
article, persons engaged in the manufacture and sale or the manufacture, sale and installation of a modular dwelling shall
pay the tax imposed by this article only on the value of the
building supplies and materials used in the manufacture and
installation of the modular dwelling and the preparation of the
site for permanent installation, and not on the labor involved in
such activities. For purposes of this section, the value of the
building supplies and materials shall be the actual cost of the
building supplies and materials. If the manufacturer asserts an
exemption at the time of purchase of the building supplies and
materials, the manufacturer shall remit the tax due on the value
of the building supplies and materials used in the manufacture of
the modular dwelling at the time of sale of the modular dwelling.
If the manufacturer pays the tax at the time of purchase of the
building supplies and materials, the manufacturer is responsible
for maintaining records evidencing payment of the tax. Failure
to maintain such records will result in the tax being assessed to
the manufacturer.
(b) Persons engaged in the sale and installation of a
modular dwelling shall pay the tax imposed by this article on
only the value of the materials used in the manufacture and
installation of the modular dwelling and the preparation of the
site for permanent installation, and not on the labor involved in
such activities. For purposes of this section, the value of the
materials used in the manufacture of the modular dwelling shall
be the actual cost of the materials and building supplies to the
manufacturer as delineated on the invoice to the purchaser. If
the actual cost of the materials is not available, then the cost of the materials used in the manufacture of the modular dwelling
shall be sixty percent of the total cost of the modular dwelling.
A credit will be given to the purchaser for any sales or use tax
that has been lawfully imposed by another state and paid by the
manufacturer on the purchase of building supplies and materials
used in the manufacture of the modular dwelling. If the
manufacturer pays the tax at the time of purchase of the building
supplies and materials, the manufacturer is responsible for
maintaining records evidencing payment of the tax and delineating
this amount on the invoice. Failure to maintain such records
will result in the credit being denied.
(c)
Definition of modular dwelling. -- For purposes of this
article, a modular dwelling shall include, but not be limited to,
single and multi-family houses, apartment units and commercial
dwellings comprised of two or more sections without a permanent
chassis, built to a state or model code other than the National
Manufactured Housing Construction and Safety Standards Act of
1974, which are primarily constructed at a location other than
the permanent site at which they are to be finally assembled and
which are shipped to the site with most permanent components in
place.
ARTICLE 15A. USE TAX.
§11-15A-2b. Tax on the manufacture, sale and installation of
modular dwellings.
(a) Notwithstanding the provisions of section two-a of this
article, persons engaged in the manufacture and sale or the
manufacture, sale and installation of a modular dwelling shall pay the tax imposed by this article only on the value of the
building supplies and materials used in the manufacture and
installation of the modular dwelling and the preparation of the
site for permanent installation, and not on the labor involved in
such activities. For purposes of this section, the value of the
building supplies and materials shall be the actual cost of the
building supplies and materials. If the manufacturer asserts an
exemption at the time of purchase of the building supplies and
materials, the manufacturer shall remit the tax due on the value
of the building supplies and materials used in the manufacture of
the modular dwelling at the time of sale of the modular dwelling.
If the manufacturer pays the tax at the time of purchase of the
building supplies and materials, the manufacturer is responsible
for maintaining records evidencing payment of the tax. Failure
to maintain such records will result in the tax being assessed to
the manufacturer.
(b) Persons engaged in the sale and installation of a
modular dwelling shall pay the tax imposed by this article on
only the value of the materials used in the manufacture and
installation of the modular dwelling and the preparation of the
site for permanent installation and not on the labor involved in
such activities. For purposes of this section, the value of the
materials used in the manufacture of the modular dwelling shall
be the actual cost of the materials and building supplies to the
manufacturer as delineated on the invoice to the purchaser. If
the actual cost of the materials is not available, then the cost
of the materials used in the manufacture of the modular dwelling shall be sixty percent of the total cost of the modular dwelling.
A credit will be given to the purchaser for any sales or use tax
that has been lawfully imposed by another state and paid by the
manufacturer on the purchase of building supplies and materials
used in the manufacture of the modular dwelling. If the
manufacturer pays the tax at the time of purchase of the building
supplies and materials, the manufacturer is reponsible for
maintaining records evidencing payment of the tax and delineating
the amount on the invoice. Failure to maintain such records will
result in the credit being denied.
(c)
Definition of modular dwelling. -- For purposes of this
article, a modular dwelling shall include, but not be limited to,
single and multi-family houses, apartment units and commercial
dwellings comprised of two or more sections without a permanent
chassis, built to a state or model code other than the National
Manufactured Housing Construction and Safety Standards Act of
1974, which are primarily constructed at a location other than
the permanent site at which they are to be finally assembled and
which are shipped to the site with most permanent components in
place.
Note: The purpose of the bill is to exempt labor used in
the manufacture and installation of modular dwellings from the
consumer's use and sales tax.
§§11-15-7a and 11-15A-2b are new; therefore, strike-throughs
and underscoring have been omitted.