WEST virginia Legislature

2016 regular session

Introduced

Senate Bill 668

By Senators Miller, Kessler and Stollings

[Introduced February 22, 2016;
Referred to the Committee on Finance.]

A BILL to amend and reenact §11-19-2 of the Code of West Virginia, 1931, as amended, relating to increasing the excise tax on bottled soft drinks, syrups and dry mixtures; and dedicating the additional proceeds to the maintenance and operation of the Joan C. Edwards School of Medicine of Marshall University and the West Virginia School of Osteopathic Medicine beginning in the year 2016.

Be it enacted by the Legislature of West Virginia:

That §11-19-2 of the Code of West Virginia, 1931, as amended, be amended and reenacted to read as follows:

ARTICLE 19. SOFT DRINKS TAX.

§11-19-2. Excise tax on bottled soft drinks, syrups and dry mixtures; disposition thereof.

(a) For the purpose of providing revenue for the construction, maintenance and operation of a four-year school of medicine, dentistry and nursing of West Virginia University, an excise tax is hereby levied and imposed on and after midnight of June 30, 1951, upon the sale, use, handling or distribution of all bottled soft drinks and all soft drink syrups, whether manufactured within or without this state, as follows:

(1) On each bottled soft drink, a tax of 14 on each sixteen and nine-tenths fluid ounces, or fraction thereof, or on each one-half liter, or fraction thereof contained therein.

(2) On each gallon of soft drink syrup, a tax of 804, and in like ratio on each part gallon thereof, or on each four liters of soft drink syrup a tax of 844, and in like ratio on each part four liters thereof.

(3) On each ounce by weight of dry mixture or fraction thereof used for making soft drinks, a tax of 14 or on each 28.35 grams, or fraction thereof, a tax of 14.

(b) (1) In addition to the provisions of subsection (a) of this section, an excise tax is hereby levied and imposed effective July 1, 2016, upon the sale, use, handling or distribution of all bottled soft drinks and all soft drink syrups, whether manufactured within or without this state, so that the total excise tax levied and imposed by this amendment and section shall be as follows:

(A) On each bottled soft drink, a tax of 14 on each sixteen and nine-tenths fluid ounces, or fraction thereof, or on each one-half liter, or fraction thereof contained therein.

(B) On each gallon of soft drink syrup, a tax of 804, and in like ratio on each part four liters thereof.

(C) On each ounce by weight of dry mixture or fraction thereof used for making soft drinks, a tax of 14 on each 28.35 grams, or fraction thereof.

(2) Fifty percent of the total amount collected pursuant to this subsection shall be used for the continued maintenance and operation of the Joan C, Edwards School of Medicine of Marshall University; and

(3) Fifty percent of the total amount collected pursuant to this subsection shall be used for the continued maintenance and operation of the West Virginia School of Osteopathic Medicine.

(c) Any person manufacturing or producing within this state any bottled soft drink or soft drink syrup for sale within this state and any distributor, wholesale dealer or retail dealer or any other person who is the original consignee of any bottled soft drink or soft drink syrup manufactured or produced outside this state, or who brings such drinks or syrups into this state, shall be liable for the excise tax hereby imposed. The excise tax hereby imposed shall not be collected more than once in respect to any bottled soft drink or soft drink syrup manufactured, sold, used or distributed in this state.

All The revenue collected by the commissioner under the provisions of this article, less such the costs of administration as are hereinafter provided for, shall be paid by him or her into a special medical school fund, which is hereby created continued in the State Treasury, to be used solely for the construction, maintenance and operation of a four-year school of medicine, dentistry and nursing of West Virginia University, the Joan C, Edwards School of Medicine of Marshall University, the West Virginia School of Osteopathic Medicine,, as otherwise provided by law:  Provided, That any subaccounts necessary to ensure the revenue collected under this section is applied in the proportions required by this section to the applicable school of medicine are hereby authorized.

NOTE: The purpose of this bill is to increase the excise tax on bottled soft drinks, syrups and dry mixtures; and dedicate the proceeds to the benefit of the four-year school of medicine, dentistry and nursing of West Virginia University, the Joan C, Edwards School of Medicine of Marshall University and the West Virginia School of Osteopathic Medicine beginning in Fiscal Year 2017.  The increase is from one cent to two cents on the bottled soft drinks and proportionally on syrups and dry mixtures.

Strike-throughs indicate language that would be stricken from a heading or the present law and underscoring indicates new language that would be added.