H. B. 3000
(By Delegates Flanigan, Prunty, Angotti,
Frederick, Wills, Givens and Shelton)
[Introduced March 26, 2001; referred to the
Committee on Finance.]
A BILL to amend and reenact section eleven, article fifteen,
chapter eleven of the code of West Virginia, one thousand nine
hundred thirty-one, as amended, relating to exempting
veterans' organizations from the state sales tax.
Be it enacted by the Legislature of West Virginia:
That section eleven, article fifteen, chapter eleven of the
code of West Virginia, one thousand nine hundred thirty-one, as
amended, be amended and reenacted to read as follows:
ARTICLE 15. CONSUMERS SALES AND SERVICE TAX.
§11-15-11. Exemption for certain organizations.
(a) Sales of taxable services by a corporation or organization
that are exempt from federal income tax under Section 501(c)(3) of
the Internal Revenue Code, and that meet the requirements set forth
in subsection (b) of this section, are exempt from the tax imposed
by this article, except that this exemption shall does not apply to sales of taxable services to the extent that income received from
the sales of such the services is taxable under Section 511 of the
Internal Revenue Code.
(b) With the exception of the provisions of subsection (c) of
this section, the exemption set forth in this section applies only
to those corporations or organizations meeting the following
criteria:
(1) The corporation or organization is organized and operated
primarily for charitable or educational purposes and its activities
and programs contribute importantly to promoting the general
welfare of youth, families and the aged, improving health and
fitness and providing recreational opportunities to the public;
(2) The corporation or organization offers membership or
participation in its programs and activities to the general public
and charges fees or dues which make its programs and activities
accessible by a reasonable cross-section of the community; and
(3) The corporation or organization offers financial
assistance on a regular and on-going basis to individuals unable to
afford the organization's membership dues or fees.
(c) Sales of goods or services by a corporation or
organization primarily organized and operated to promote, support
or publicize military veterans' causes, interests or affairs, or
to otherwise conduct legitimate business activities on behalf and
for the benefit of, veterans, veterans' organizations or veterans' groups, are exempt from the tax imposed by this article.
(c) (d) The tax commissioner is prohibited from issuing any
assessments and from taking any other action under article ten of
this chapter after the thirty-first day of December, one thousand
nine hundred ninety-one, to collect the tax imposed by this article
from an organization described in subsections (a) and (b) of this
section that did not collect the tax on transactions occurring
before the first day of July, one thousand nine hundred ninety-two.
The tax commissioner is also prohibited from refunding any tax
collected by a qualified organization prior to the first day of
July, one thousand nine hundred ninety-two, that was paid over to
the tax commissioner.
(d) (e) For purposes of this section, the term "corporation"
and the term "organization" are used interchangeably and mean a
corporation or other organization that is exempt from income tax
under Section 501(c)(3) of the Internal Revenue Code, as amended.
(e) (f) Nothing in this section shall affect the application
of this article to nonprofit tax-exempt hospitals.
NOTE: The purpose of this bill is to exempt veterans'
organizations from the sales tax provisions.
Strike-throughs indicate language that would be stricken from
the present law, and underscoring indicates new language that would
be added.
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