H. B. 3329
(By Delegates Armstead, Lane, Blair, Sobonya and Howard)
[Introduced
March 25, 2005
; referred to the
Committee on Roads and Transportation then Finance
.]
A BILL to amend and reenact §11-14C-5 of the Code of West Virginia,
1931, as amended, relating to reducing by five cents the
excise tax on all gasoline and special fuel sold in this
state.
Be it enacted by the Legislature of West Virginia:
That §11-14C-5 of the Code of West Virginia, 1931, as amended,
be amended and reenacted to read as follows:
ARTICLE 14C. MOTOR FUEL EXCISE TAX.
PART 2. MOTOR FUEL TAX; LIABILITY.
§11-14C-5. Taxes levied; rate.
(a) There is hereby levied on all motor fuel an excise tax
composed of a flat rate equal to
twenty and one-half fifteen and
one-half cents per invoiced gallon plus a variable component
comprised of either the tax imposed by section eighteen-b, article
fifteen of this chapter or the tax imposed under section thirteen-a, article fifteen-a of this chapter, as applicable:
Provided, That the motor fuel excise tax shall take effect the
first day of January, two thousand four: Provided, however, That
on and after the first day of August, two thousand seven, the flat
rate portion of the motor fuel excise tax shall be fifteen and
one-half cents per gallon:
Provided further, however, That the
variable component shall be equal to five percent of the average
wholesale price of the motor fuel:
And Provided further, That the
average wholesale price shall be no less than ninety-seven cents
per invoiced gallon and is computed as hereinafter prescribed in
this section.
(b)
Determination of average wholesale price. --
(1) To simplify determining the average wholesale price of all
motor fuel, the Tax Commissioner shall, effective with the period
beginning the first day of the month of the effective date of this
section and each first day of January thereafter, determine the
average wholesale price of motor fuel for each annual period on the
basis of sales data gathered for the preceding period of the first
day of July through the thirty-first day of October. Notification
of the average wholesale price of motor fuel shall be given by the
tax commissioner at least thirty days in advance of each first day
of January by filing notice of the average wholesale price in the
state register, and by any other means as the Tax Commissioner
considers reasonable:
Provided, That notice of the average wholesale price of motor fuel for the first period shall be timely
given if filed in the state register on the effective date of this
section.
(2) The "average wholesale price" means the single, statewide
average per gallon wholesale price, rounded to the third decimal
(thousandth of a cent), exclusive of state and federal excise taxes
on each gallon of motor fuel, as determined by the Tax Commissioner
from information furnished by suppliers, importers and distributors
of motor fuel in this state, or other information regarding
wholesale selling prices as the Tax Commissioner may gather, or a
combination of information:
Provided, That in no event shall the
average wholesale price be determined to be less than ninety-seven
cents per gallon of motor fuel.
(3) All actions of the Tax Commissioner in acquiring data
necessary to establish and determine the average wholesale price of
motor fuel, in providing notification of his or her determination
prior to the effective date of any change in rate, and in
establishing and determining the average wholesale price of motor
fuel, may be made by the Tax Commissioner without compliance with
the provisions of article three, chapter twenty-nine-a of this
code.
(4) In any administrative or court proceeding brought to
challenge the average wholesale price of motor fuel as determined
by the Tax Commissioner, his or her determination is presumed to be correct and shall not be set aside unless it is clearly erroneous.
(c) There is hereby levied a floorstocks tax on motor fuel
held in storage outside the bulk transfer/terminal system as of the
close of the business day preceding the first day of January, two
thousand four, and upon which the tax levied by this section has
not been paid. For the purposes of this section, "close of the
business day" means the time at which the last transaction has
occurred for that day. The floorstocks tax is payable by the
person in possession of the motor fuel on the first day of January,
two thousand four. The amount of the floorstocks tax on motor fuel
is equal to the sum of the tax rate specified in subsection (a) of
this section multiplied by the gallons in storage as of the close
of the business day preceding the first day of January, two
thousand four.
(1) Persons in possession of taxable motor fuel in storage
outside the bulk transfer/terminal system as of the close of the
business day preceding the first day of January, two thousand four,
shall:
(A) Take an inventory at the close of the business day
preceding the first day of January, two thousand four, to determine
the gallons in storage for purposes of determining the floorstocks
tax;
(B) Report no later than the thirty-first day of January, two
thousand four, the gallons on forms provided by the Commissioner; and
(C) Remit the tax levied under this section no later than the
first day of June, two thousand four.
(2) In the event the tax due is paid to the Commissioner on or
before the thirty-first day of January, two thousand four, the
person remitting the tax may deduct from their remittance five
percent of the tax liability due.
(3) In the event the tax due is paid to the Commissioner after
the first day of June, two thousand four, the person remitting the
tax shall pay, in addition to the tax, a penalty in the amount of
five percent of the tax liability due.
(4) In determining the amount of floorstocks tax due under
this section, the amount of motor fuel in dead storage may be
excluded. There are two methods for calculating the amount of
motor fuel in dead storage:
(A) If the tank has a capacity of less than ten thousand
gallons, the amount of motor fuel in dead storage is two hundred
gallons and if the tank has a capacity of ten thousand gallons or
more, the amount of motor fuel in dead storage is four hundred
gallons; or
(B) Use the manufacturer's conversion table for the tank after
measuring the number of inches between the bottom of the tank and
the bottom of the mouth of the drainpipe:
Provided, That the
distance between the bottom of the tank and the bottom of the mouth of the draw pipe is presumed to be six inches.
(d) Every licensee who, on the effective date of any rate
change, has in inventory any motor fuel upon which the tax or any
portion thereof has been previously paid shall take a physical
inventory and file a report thereof with the Commissioner, in the
format as required by the Commissioner, within thirty days after
the effective date of the rate change, and shall pay to the
Commissioner at the time of filing the report any additional tax
due under the increased rate.
NOTE: The purpose of this bill is to lower the excise tax on
all fuels sold in this state by $0.05.
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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