Introduced Version
House Bill 2150 History
| Email
Key: Green = existing Code. Red = new code to be enacted
H. B. 2150
(By Delegates Williams, Guthrie, Ireland,
Lawrence, Marshall and Moye)
[Introduced February 13, 2013; referred to the
Committee on Finance.]
A BILL to amend and reenact §11-15-3c of the Code of West Virginia,
1931, as amended, relating to eliminating the consumers sales
tax on utility terrain vehicles that are used for agricultural
purposes; and defining utility terrain vehicle as a motor
vehicle.
Be it enacted by the Legislature of West Virginia:
That §11-15-3c of the Code of West Virginia, 1931, as amended,
be amended and reenacted to read as follows:
ARTICLE 15. CONSUMERS SALES AND SERVICE TAX.
§11-15-3c. Imposition of consumers sales tax on motor vehicle
sales; rate of tax; use of motor vehicle purchased
out of state; definition of sale; definition of
motor vehicle; exemptions; collection of tax by
Division of Motor Vehicles; dedication of tax to
highways; legislative and emergency rules.
(a) Notwithstanding any provision of this article or article fifteen-a of this chapter to the contrary, beginning on July 1,
2008, all motor vehicle sales to West Virginia residents shall be
subject to the consumers sales tax imposed by this article.
(b) Rate of tax on motor vehicles. -- Notwithstanding any
provision of this article or article fifteen-a of this chapter to
the contrary, the rate of tax on the sale and use of a motor vehicle
shall be five percent of its sale price, as defined in section two,
article fifteen-b of this chapter: Provided, That so much of the
sale price or consideration as is represented by the exchange of
other vehicles on which the tax imposed by this section or section
four, article three, chapter seventeen-a of this code has been paid
by the purchaser shall be deducted from the total actual sale price
paid for the motor vehicle, whether the motor vehicle be new or
used.
(c) Motor vehicles purchased out of state. -- Notwithstanding
this article or article fifteen-a to the contrary, the tax imposed
by this section shall apply to all motor vehicles, used as defined
by section one, article fifteen-a of this chapter, within this
state, regardless of whether the vehicle was purchased in a state
other than West Virginia.
(d) Definition of sale. -- Notwithstanding any provision of
this article or article fifteen-a of this chapter to the contrary,
for purposes of this section, "sale", "sales" or "selling" means any
transfer or lease of the possession or ownership of a motor vehicle for consideration, including isolated transactions between
individuals not being made in the ordinary course of repeated and
successive business and also including casual and occasional sales
between individuals not conducted in a repeated manner or in the
ordinary course of repetitive and successive transactions.
(e) Definition of motor vehicle. -- For purposes of this
section, "motor vehicle" means every propellable device in or upon
which any person or property is or may be transported or drawn upon
a highway including, but not limited to: Automobiles; buses; motor
homes; motorcycles; motorboats; all-terrain vehicles; utility
terrain vehicles; snowmobiles; low-speed vehicles; trucks, truck
tractors and road tractors having a weight of less than fifty-five
thousand pounds; trailers, semitrailers, full trailers, pole
trailers and converter gear having a gross weight of less than two
thousand pounds; and motorboat trailers, fold-down camping trailers,
traveling trailers, house trailers and motor homes; except that the
term "motor vehicle" does not include: Modular homes, manufactured
homes, mobile homes, similar nonmotive propelled vehicles
susceptible of being moved upon the highways but primarily designed
for habitation and occupancy; devices operated regularly for the
transportation of persons for compensation under a certificate of
convenience and necessity or contract carrier permit issued by the
Public Service Commission; mobile equipment as defined in section
one, article one, chapter seventeen-a of this code; special mobile equipment as defined in section one, article one, chapter seventeen-
a of this code; trucks, truck tractors and road tractors having a
gross weight of fifty-five thousand pounds or more; trailers,
semitrailers, full trailers, pole trailers and converter gear having
weight of two thousand pounds or greater: Provided, That
notwithstanding the provisions of section nine, article fifteen,
chapter eleven of this code, the exemption from tax under this
section for mobile equipment as defined in section one, article one,
chapter seventeen-a of this code; special mobile equipment defined
in section one, article one, chapter seventeen-a of this code; Class
B trucks, truck tractors and road tractors registered at a gross
weight of fifty-five thousand pounds or more; and Class C trailers,
semitrailers, full trailers, pole trailers and converter gear having
weight of two thousand pounds or greater does not subject the sale
or purchase of the vehicle to the consumer sales and service tax
imposed by section three of this article.
(f) Exemptions. -- Notwithstanding any other provision of this
code to the contrary, the tax imposed by this section shall not be
subject to any exemption in this code other than the following:
(1) The tax imposed by this section does not apply to any
passenger vehicle offered for rent in the normal course of business
by a daily passenger rental car business as licensed under the
provisions of article six-d, chapter seventeen-a of this code. For
purposes of this section, a daily passenger car means a motor vehicle having a gross weight of eight thousand pounds or less and
is registered in this state or any other state. In lieu of the tax
imposed by this section, there is hereby imposed a tax of not less
than $1 nor more than $1.50 for each day or part of the rental
period. The Commissioner of Motor Vehicles shall propose an
emergency rule in accordance with the provisions of article three,
chapter twenty-nine-a of this code to establish this tax.
(2) The tax imposed by this section does not apply where the
motor vehicle has been acquired by a corporation, partnership or
limited liability company from another corporation, partnership or
limited liability company that is a member of the same controlled
group and the entity transferring the motor vehicle has previously
paid the tax on that motor vehicle imposed by this section. For the
purposes of this section, control means ownership, directly or
indirectly, of stock or equity interests possessing fifty percent
or more of the total combined voting power of all classes of the
stock of a corporation or equity interests of a partnership or
limited liability company entitled to vote or ownership, directly
or indirectly, of stock or equity interests possessing fifty percent
or more of the value of the corporation, partnership or limited
liability company.
(3) The tax imposed by this section does not apply where motor
vehicle has been acquired by a senior citizen service organization
which is exempt from the payment of income taxes under the United States Internal Revenue Code, Title 26 U.S.C. §501(c)(3) and which
is recognized to be a bona fide senior citizen service organization
by the Bureau of Senior Services existing under the provisions of
article five, chapter sixteen of this code.
(4) The tax imposed by this section does not apply to any
active duty military personnel stationed outside of West Virginia
who acquires a motor vehicle by sale within nine months from the
date the person returns to this state.
(5) The tax imposed by this section does not apply to motor
vehicles acquired by registered dealers of this state for resale
only.
(6) The tax imposed by this section does not apply to motor
vehicles acquired by this state or any political subdivision thereof
or by any volunteer fire department or duly chartered rescue or
ambulance squad organized and incorporated under the laws of this
state as a nonprofit corporation for protection of life or property.
(7) The tax imposed by this section does not apply to motor
vehicles acquired by an urban mass transit authority, as defined in
article twenty-seven, chapter eight of this code, or a nonprofit
entity exempt from federal and state income tax under the Internal
Revenue Code for the purpose of providing mass transportation to the
public at large or designed for the transportation of persons and
being operated for the transportation of persons in the public
interest.
(8) The tax imposed by this section does not apply to the
registration of a vehicle owned and titled in the name of a resident
of this state if the applicant:
(A) Was not a resident of this state at the time the applicant
purchased or otherwise acquired ownership of the vehicle;
(B) Presents evidence as the Commissioner of Motor Vehicles may
require of having titled the vehicle in the applicant's previous
state of residence;
(C) Has relocated to this state and can present such evidence
as the Commissioner of Motor Vehicles may require to show bona fide
residency in this state; and
(D) Makes application to the Division of Motor Vehicles for a
title and registration and pays all other fees required by chapter
seventeen-a of this code within thirty days of establishing
residency in this state as prescribed in subsection (a), section
one-a of this article.
(9) On and after January 1, 2009, the tax imposed by this
section does not apply to Class B trucks, truck tractors and road
tractors registered at a gross weight of fifty-five thousand pounds
or more or to Class C trailers, semitrailers, full trailers, pole
trailers and converter gear having a weight of two thousand pounds
or greater. If an owner of a vehicle has previously titled the
vehicle at a declared gross weight of fifty-five thousand pounds or
more and the title was issued without the payment of the tax imposed by this section, then before the owner may obtain registration for
the vehicle at a gross weight less than fifty-five thousand pounds,
the owner shall surrender to the commissioner the exempted
registration, the exempted certificate of title and pay the tax
imposed by this section based upon the current market value of the
vehicle.
(10) The tax imposed by this section does not apply to vehicles
leased by residents of West Virginia. On or after January 1, 2009,
a tax is imposed upon the monthly payments for the lease of any
motor vehicle leased under a written contract of lease by a resident
of West Virginia for a contractually specified continuous period of
more than thirty days, which tax is equal to five percent of the
amount of the monthly payment, applied to each payment, and
continuing for the entire term of the initial lease period. The tax
shall be remitted to the Division of Motor Vehicles on a monthly
basis by the lessor of the vehicle. Leases of thirty days or less
are taxable under the provisions of this article and article
fifteen-a of this chapter without reference to this section.
_(11) The tax imposed by this section does not apply to utility
terrain vehicle used for the commercial production of an
agricultural product whose ultimate sale is subject to tax under
this article where the vehicle is used on farmland valued in
accordance with section ten, article one-a of this chapter and
legislative rule: Provided, That the purchaser presents to the vendor a completed application for farm use valuation for the
property being farmed by the purchaser and the application bears the
assessor's stamp that the application was granted.
(g) Division of Motor Vehicles to collect. -- Notwithstanding
any provision of this article, article fifteen-a and article ten of
this chapter to the contrary, the Division of Motor Vehicles shall
collect the tax imposed by this section: Provided, That such tax is
imposed upon the monthly payments for the lease of any motor vehicle
leased by a resident of West Virginia, which tax is equal to five
percent of the amount of the monthly payment, applied to each
payment, and continuing for the entire term of the initial lease
period. The tax shall be remitted to the Division of Motor Vehicles
on a monthly basis by the lessor of the vehicle.
(h) Dedication of tax to highways. -- Notwithstanding any
provision of this article or article fifteen-a of this chapter to
the contrary, all taxes collected pursuant to this section, after
deducting the amount of any refunds lawfully paid, shall be
deposited in the State Road Fund in the State Treasury and expended
by the Commissioner of Highways for design, maintenance and
construction of roads in the state highway system.
(i) Legislative rules; emergency rules. -- Notwithstanding any
provision of this article, article fifteen-a and article ten of this
chapter to the contrary, the Commissioner of Motor Vehicles shall
promulgate legislative rules explaining and implementing this section, which rules shall be promulgated in accordance with the
provisions of article three, chapter twenty-nine-a of this code and
should include a minimum taxable value and set forth instances when
a vehicle is to be taxed at fair market value rather than its
purchase price. The authority to promulgate rules includes authority
to amend or repeal those rules. If proposed legislative rules for
this section are filed in the State Register before June 15, 2008,
those rules may be promulgated as emergency legislative rules as
provided in article three, chapter twenty-nine-a of this code.
(j) Notwithstanding any other provision of this code, effective
January 1, 2009, no municipal sales or use tax or local sales or use
tax or special downtown redevelopment district excise tax or special
district excise tax shall be imposed under article twenty-two,
chapter seven of this code or article thirteen, chapter eight of
this code or article thirteen-b of said chapter or article thirty-
eight of said chapter or any other provision of this code, except
this section, on sales of motor vehicles as defined in this article
or on any tangible personal property excepted or exempted from tax
under this section. Nothing in this subsection shall be construed
to prevent the application of the municipal business and occupation
tax on motor vehicle retailers and leasing companies.
NOTE: The purpose of this bill is to eliminate the sales tax
on tax utility terrain vehicles. The bill sets forth the conditions that must be met to qualify for the exclusion. The bill also defines
utility terrain vehicles as motor vehicles.
Strike-throughs indicate language that would be stricken from
the present law, and underscoring indicates new language that would
be added.