Senate Bill No. 243
(By Senators Walker, Yoder, Manchin, Deem, Boley, Kimble,
Buckalew, Scott, Dugan, Schoonover and Ross)
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[Introduced February 2, 1995; referred to the Committee
on Finance.]
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A BILL to amend and reenact sections three and sixteen, article
fourteen, chapter eleven of the code of West Virginia, one
thousand nine hundred thirty-one, as amended; to amend and
reenact section three, article fifteen of said chapter; and
to amend and reenact section two, article fifteen-a of said
chapter, all relating to the excise tax on gasoline.
Be it enacted by the Legislature of West Virginia:
That sections three and sixteen, article fourteen, chapter
eleven of the code of West Virginia, one thousand nine hundred
thirty-one, as amended, be amended and reenacted; that section
three, article fifteen of said chapter be amended and reenacted;
and that section two, article fifteen-a of said chapter be amended and reenacted, all to read as follows:
ARTICLE 14. GASOLINE AND SPECIAL FUEL EXCISE TAX.
§11-14-3. Imposition of tax.
There is hereby levied an excise tax of fifteen eighteen and
one-half cents per gallon on all gasoline or special fuel, which
tax shall be computed in accordance with the appropriate measure
of tax as hereinafter prescribed in this article: Provided, That
beginning the first day of May, one thousand nine hundred
ninety-three, the tax levied by this article shall be twenty and
one-half cents per gallon: Provided, however, That on and after
the first day of August, two thousand one, the tax levied by this
article shall be fifteen and one-half cents per gallon.
§11-14-16. Disposition of increase in tax collected.
(a)The Legislature finds:
(1) That the "Intermodal Surface Transportation Efficiency
Act of 1991" provides a window of opportunity for highway and
bridge construction in the state of West Virginia;
(2) That the "Intermodal Surface Transportation Efficiency
Act of 1991" provides for one billion dollars of regular federal
highway and bridge funding over the effective period of the
legislation;
(3) That the "Intermodal Surface Transportation Efficiency
Act of 1991" additionally authorizes the necessary funding to
complete the Appalachian highway corridor system in the state of
West Virginia;
(4) That the "Intermodal Surface Transportation Efficiency
Act of 1991" provides authorization for additional funding for
other specifically identified highway corridors and projects
throughout the state of West Virginia;
(5) That the anticipated level of total funding resulting
from the passage of the "Intermodal Surface Transportation Act of
1991," if matched by sufficient state funds, would reach
approximately six billion dollars through the year two thousand
one;
(6) That this program level would be made possible by a five
three cent increase in the rate of tax on gasoline and special
fuels;
(7) That such a program level would enable a continued
aggressive highway paving, bridge safety and highway maintenance
program; and
(8) That the highways constructed and improvements to the
existing transportation system in the state of West Virginia resulting from this highway construction program would be a
substantial stimulus to economic development in this state.
(b) The Legislature further finds that in view of this
anticipated highways construction program, the division of
highways must increase its efficiency and professionalism and
make better use of the resources provided to the division by the
citizens of our state. To this end, the division of highways
shall undertake the efficiency initiatives set forth in
subsection (c) of this section, as well as other efficiency
initiatives deemed appropriate by the secretary of the department
of transportation and the director of the division of highways.
The secretary of the department of transportation shall report to
the Legislature on the first day of the regular legislative
session, one thousand nine hundred ninety-four, regarding the
implementation of all the efficiency initiatives undertaken by
the division of highways. The report shall also include the
source and amount of savings from these efficiency initiatives.
Any savings resulting from these efficiency initiatives shall be
utilized by the department of transportation to increase state
funds available to match federal dollars to promote the highway
construction program.
(c) The following efficiency initiatives shall be
implemented by the division of highways:
(1) Reduction in the division's passenger vehicle fleet by
one hundred seventy vehicles; and
(2) Restriction on the use and number of passenger vehicles
utilized for twenty-four hour duty so as to cause a reduction in
the total cost of operation of the twenty-four hour duty vehicle
fleet by fifty percent.
(d) The amount of the tax collected attributable to the five
cent increase in the tax collected under the provisions of this
article effective the first day of May, one thousand nine hundred
ninety-three, shall be deposited in a special account in the
state treasury known as the "Federal Aid Highway Matching Fund"
and shall only be used to match federal moneys available for
highway purposes as authorized by Title 23 and Title 40 or other
provisions of the United States Code: Provided, That the
"Federal Aid Highway Matching Fund" shall be appropriated by line
item by the Legislature.
ARTICLE 15. CONSUMER SALES TAX.
§11-15-3. Amount of tax; allocation of tax and transfers.
(a) For the privilege of selling tangible personal property and of dispensing certain selected services defined in sections
two and eight of this article, the vendor shall collect from the
purchaser the tax as provided under this article, and shall pay
the amount of tax to the tax commissioner in accordance with the
provisions of this article.
(b) Beginning on the first day of March, one thousand nine
hundred eighty-nine, the general consumer sales and service tax
imposed by this article shall be at the rate of six cents on the
dollar of sales or services, excluding gasoline and special fuel
sales. which remain taxable at the rate of five cents on the
dollar of sales Beginning on the first day of July, one thousand
nine hundred ninety-five, gasoline and special fuel shall be
taxed at a rate of eighteen and one-half cents per gallon.
(c) There shall be no tax on sales where the monetary
consideration is five cents or less. The amount of the tax shall
be computed as follows:
(1) On each sale, where the monetary consideration is from
six cents to sixteen cents, both inclusive, one cent.
(2) On each sale, where the monetary consideration is from
seventeen cents to thirty-three cents, both inclusive, two cents.
(3) On each sale, where the monetary consideration is from thirty-four cents to fifty cents, both inclusive, three cents.
(4) On each sale, where the monetary consideration is from
fifty-one cents to sixty-seven cents, both inclusive, four cents.
(5) On each sale, where the monetary consideration is from
sixty-eight cents to eighty-four cents, both inclusive, five
cents.
(6) On each sale, where the monetary consideration is from
eighty-five cents to one dollar, both inclusive, six cents.
(7) If the sale price is in excess of one dollar, six cents
on each whole dollar of sale price, and upon any fractional part
of a dollar in excess of whole dollars as follows: One cent on
the fractional part of the dollar if less than seventeen cents;
two cents on the fractional part of the dollar if in excess of
sixteen cents but less than thirty-four cents; three cents on the
fractional part of the dollar if in excess of thirty-three cents
but less than fifty-one cents; four cents on the fractional part
of the dollar if in excess of fifty cents but less than
sixty-eight cents; five cents on the fractional part of the
dollar if in excess of sixty-seven cents but less than
eighty-five cents; and six cents on the fractional part of the
dollar if in excess of eighty-four cents. For example, the tax on sales from one dollar and one cent to one dollar and sixteen
cents, both inclusive, seven cents; on sales from one dollar and
seventeen cents to one dollar and thirty-three cents, both
inclusive, eight cents; on sales from one dollar and thirty-four
cents to one dollar and fifty cents, both inclusive, nine cents;
on sales from one dollar and fifty-one cents to one dollar and
sixty-seven cents, both inclusive, ten cents; on sales from one
dollar and sixty-eight cents to one dollar and eighty-four cents,
both inclusive, eleven cents and on sales from one dollar and
eighty-five cents to two dollars, both inclusive, twelve cents.
(d) Separate sales, such as daily or weekly deliveries,
shall not be aggregated for the purpose of computation of the tax
even though such sales are aggregated in the billing or payment
therefor. Notwithstanding any other provision, coin-operated
amusement and vending machine sales shall be aggregated for the
purpose of computation of this tax.
(e) Of the taxes collected under the provisions of this
article, one sixth of such taxes collected for the period
subsequent to the thirty-first day of May one thousand nine
hundred eighty-eight prior to the first day of July, one thousand
nine hundred eighty-nine, and not attributable to or resulting from the repeal of section eleven of this article or attributable
to tax on purchases of gasoline and special fuel, shall be
reasonably allocated, with allowance for refunds and net of
reasonable costs of administration, to and deposited by the tax
commissioner in the special account created in the treasury by
section eight-a, article four-b, chapter twenty-three of this
code, not to exceed the amount sufficient for making timely
repayment of the principal and interest under the first payment
due, by the th
irtieth day of June, one thousand nine hundred
eighty-nine, in repayment for the moneys previously transferred
from such the pneumoconiosis fund.
ARTICLE 15A. USE TAX.
§11-15A-2. Im
position of tax; six percent tax rate beginning
March one, one thousand nine hundred eighty-nine; inclusion
of services as taxable on and after the first day of July,
one thousand nine hundred eighty-seven; transition rules;
allocation of tax and transfers.
(a) An excise tax is hereby levied and imposed on the use
in this state of tangible personal property or taxable services,
to be collected and paid as hereinafter provided, at the rate of
six percent of the purchase price of such the property or taxable
services, beginning on the first day of March, one thousand nine hundred eighty-nine, except excluding gasoline and special fuel
sales. that sales of gasoline and special fuel shall remain
taxable at five percent Beginning on the first day of July, one
thousand nine hundred ninety-five, gasoline and special fuel
shall be taxed at a rate of eighteen and one-half cents per
gallon. "Taxable services," for the purposes of this article,
means services of the nature that are subject to the tax imposed
by article fifteen of this chapter. In this article, wherever
the words "tangible personal property" or "property" appear, the
same shall include the words "or taxable services," where the
context so requires.
(b) Such The tax is hereby imposed upon every person using
tangible personal property or taxable services within this state.
That person's liability is not extinguished until such the tax
has been paid. A receipt with the tax separately stated thereon
issued by a retailer engaged in business in this state, or by a
foreign retailer who is authorized by the tax commissioner to
collect the tax imposed by this article, relieves the purchaser
from further liability for the tax to which the receipt refers.
(c) Purchases of tangible personal property or taxable
services made for the government of the United States or any of its agencies by ultimate consumers shall be subject to the tax
imposed by this section. Industrial materials and equipment
owned by the federal government within the state of West Virginia
of a character not ordinarily readily obtainable within the
state, shall not be subject to use tax when sold, if such the
industrial materials and equipment would not be subject to use
taxes if such they were sold outside of the state for use in West
Virginia.
(d) This article shall not apply to purchases made by
counties or municipal corporations.
(e) The provisions of this section, as amended, shall apply
on and after the first day of March, one thousand nine hundred
eighty-nine, except where another internal specific effective
date controls.
(f) Of the taxes collected under the provisions of this
article, one sixth of such the taxes collected for the period
subsequent to the thirty-first day of May, one thousand nine
hundred eighty-eight and prior to the first day of July, one
thousand nine hundred eighty-nine, and not attributable to or
resulting from the repeal of section eleven, article fifteen of
this chapter or attributable to tax on gasoline and special fuel, shall be reasonably allocated, with allowances for refunds and
net of reasonable costs of administration, to, and deposited by
the tax commissioner in the special account created in the
treasury by section eight-a, article four-b, chapter twenty-three
of this code, not to exceed the amount sufficient for making
timely repayment of the principal and interest under the first
payment due, by the thirtieth day of June, one thousand nine
hundred eighty-nine, in repayment for the moneys previously
transferred from such the pneumoconiosis fund.
NOTE: The purpose of this bill is to reduce the gasoline
tax by two cents.
Strike-throughs indicate language that would be stricken
from the present law, and underscoring indicates new language
that would be added.