WEST virginia
legislature
2017 regular session
By
[
to the Committee on Finance.
A BILL to amend and
reenact §11-19-1 and §11-19-2 of the Code of West Virginia, 1931, as amended,
all relating to the tax on soft drinks; modifying the tax to only cover sugary
drinks; modifying the tax to two cents per ounce; redistributing the revenue
generated to all three medical schools in the state and providing for an
effective date.
Be it enacted by the
Legislature of West Virginia:
That §11-19-1 and
§11-19-2 of the Code of West Virginia, 1931, as amended, be amended and
reenacted, all to read as follows:
ARTICLE 19. SOFT
DRINKS TAX.
§11-19-1. Definitions.
As used in this article:
(1) "Bottled soft drinks" shall include any and all
nonalcoholic beverages, whether carbonated or not, which are intended for
human consumption and contain any added caloric sweetener, such as soda
water, ginger ale, coca cola, lime cola, pepsi cola, doctor pepper, root beer,
carbonated water, orangeade, lemonade, fruit juice when any plain or carbonated
water, flavoring or syrup is added, or any and all preparations commonly
referred to as"soft drinks" of whatever kind which are closed and
sealed in glass, paper, or any other type of container, envelope, package or
bottle, whether manufactured with or without the use of any syrup. The term
"bottled soft drinks" shall not include beverages sweetened solely
with noncaloric sweeteners; water, carbonated or not, to which no caloric
sweetener has been added; fluid milk to which no flavoring has been added;
or natural undiluted fruit juice or vegetable juice.
(2) "Natural
undiluted fruit juice" shall mean the original liquid resulting
from the pressing of fruit, with or without sweetener being added or the
liquid resulting from the reconstitution of natural fruit juice concentrate by
the restoration of water to dehydrated natural fruit juice. with or without
sweetener being added
(3) "Natural undiluted vegetable juice" shall mean
the original liquid resulting from the pressing of vegetables with or
without sweetener being added or the liquid resulting from the reconstitution
of natural vegetable juice concentrate by the restoration of water to dehydrated
natural vegetable juice. with or without sweetener being added
(4) "Caloric sweetener" shall mean any
caloric substance suitable for human consumption that humans perceive as sweet
and includes, without limitation, sucrose, fructose, glucose, or other sugars.
“Caloric sweetener” excludes noncaloric sweeteners. For purposes of this
definition, “caloric” means a substance which adds calories to the diet of a
person who consumes that substance. sugar
only, artificial or natural, which singularly flavors the taste of a natural
undiluted fruit juice or natural undiluted vegetable juice
(5) "Soft drink syrups and powders" shall include
the compound mixture or the basic ingredients, whether dry or liquid,
practically and commercially usable in making, mixing or compounding soft
drinks by the mixing thereof with one or more other ingredients, including
without limitation, carbonated or plain water, ice, fruit, milk or any
other product suitable to make a soft drink, among such syrups being such
products as coca cola syrup, chero cola syrup, pepsi cola syrup, doctor pepper
syrup, root beer syrup, nu-grape syrup, lemon syrup, vanilla syrup, chocolate
syrup, cherry smash syrup, rock candy syrup, simple syrup, chocolate drink
powder, malt drink powder, or any other prepared syrups or powders sold or
used for the purpose of mixing soft drinks commercially at soda fountains,
restaurants or similar places as well as those syrups and powder bases
prepared for the purpose of domestically mixing soft drinks. such as kool aid, oh boy drink, tip top,
miracle aid and all other similar products
(6) "Simple syrup" shall mean the making, mixing,
compounding or manufacturing, by
dissolving sugar and water or any other mixtures that will
create simple syrup to which
may or may not be added concentrates or extracts
(7) (6) "Person"
shall mean and include an individual, firm, partnership, association, or
corporation, or any other legal entity.
(8) (7) "Wholesale
dealer" includes only those persons who sell any bottled soft drink or
soft drink syrup to retail dealers for the purpose of resale.
(9) (8) "Retail
dealer" includes every person other than a wholesale dealer who sells
or otherwise dispenses bottle soft drinks, or mixes, makes, compounds, or
manufactures mixing, making, compounding or manufacturing any drink
from a soft drink syrup or powder base, or a person selling such syrup or
powder.
(10) (9) "Distributor"
shall mean any person who receives, stores, manufactures, bottles,
produces, distributes and/or purchases for sale to retail dealers any
bottled soft drink or soft drink syrup or powder, whether or not that person
also sells such products to consumers.
(11) (10)
"Commissioner" means the state tax commissioner, and where the
meaning of the context requires, all deputies and employees duly authorized by
him.
§ 11-19-2. Excise tax on
bottled soft drinks, syrups and powders dry mixtures; disposition
thereof.
(a) For the purpose of providing revenue for the construction,
maintenance and operation of a four year school schools of
medicine, dentistry and nursing of in West Virginia University
an excise tax is hereby levied and imposed on and after midnight of the last
day of June, one thousand nine hundred fifty one upon the sale, use,
handling or distribution of all bottled soft drinks and all soft drink syrups and
powders, whether manufactured within or without this state. as
follows:
(b) Effective July 1, 2017,
bottled soft drinks and soft drink syrups and powders will be taxed as follows:
(1) Bottled soft drinks shall be
taxed at a rate of two cents per fluid ounce.
(2) Soft drink syrups and powders
shall be taxed at a rate of two cents per ounce of soft drink produced from
that syrup or powder. For purposes of calculating the tax, the volume of soft
drink produced from syrups or powders shall be the larger of:
(A) The largest
volume resulting from use of the syrups or powders per any manufacturer’s
instructions, or
(B) The volume
actually produced by the retail dealer, as reasonably determined by the commissioner.
(1) On each bottled soft drink, a
tax of one cent 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 eighty cents, and in like ratio on each part
gallon thereof, or on each four
liters of soft drink syrup a tax of eighty-four cents, 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 one cent or on each
28.35 grams, or fraction thereof, a tax of one cent.
(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.
(D) All revenue collected by the commissioner under the
provisions of this article, less such costs of administration as are
hereinafter provided for, shall be paid by him into a special medical school
fund, which is hereby created in the state treasury, to be disbursed as
follows: used solely for the construction, maintenance and operation of
a four-year school of medicine, dentistry and nursing, as otherwise provided by
law.
(i) The first $18 million
collected shall be for the continued use of a four-year school of medicine,
dentistry and nursing at West Virginia University;
(ii) From the remaining revenue,
$5 million shall be for the use of the school of medicine at Marshall
University; and
(iii) From any remaining revenue,
$3 million shall be for the use of the West Virginia Osteopathic School.
(iv) Any excess proceeds up to $55 million shall be
directed by supplemental appropriation for teachers pay raises and annually
distributed in accordance with section five-c, article four, chapter eighteen-a
of the code; and the remainder of any revenue collected shall be deposited in
the general revenue fund of the state.
NOTE: The purpose of this bill is
to change
the structure of the tax on bottled soft drinks and soft drink syrups and
powders to only cover soft drinks with added caloric sweeteners, increase the
rate to two cents per ounce, and to rededicate the proceeds to all three
medical schools in the state.
Strike-throughs indicate language
that would be stricken from a heading or the present law and underscoring
indicates new language that would be added.