H. B. 2657
(By Delegates Seacrist, Hunt and Ashley)
[Introduced March 20, 1997; referred to the
Committee on Political Subdivisions then Finance.]
A BILL to amend and reenact section five-a, article thirteen,
chapter eight of the code of West Virginia, one thousand
nine hundred thirty-one, as amended, relating to public
utilities tax imposed by municipalities and the exceptions
or exemptions thereto.
Be it enacted by the Legislature of West Virginia:
That section five-a, article thirteen, chapter eight of the
code of West Virginia, one thousand nine hundred thirty-one, as
amended, be amended and reenacted to read as follows:
ARTICLE 13. TAXATION AND FINANCE.
§8-13-5a. Public utilities tax.
Every municipality shall have plenary power and authority to
levy and collect an excise tax on the privilege of purchasing,
using or consuming, within the corporate limits of such the municipality, public utility services and tangible personal
property from public utilities subject to the jurisdiction of the
public service commission of West Virginia. Such The tax shall
be computed on the basis of an amount not to exceed two percent
of the gross amount of each periodic statement rendered such the
purchasers or consumers by such the public utilities: Provided,
however, That sales of tangible personal property such as
appliances or the like, as distinguished from the public service
supplied, shall may not be included in the gross amount subject
to the measure of this tax: Provided, however, That this tax
does not apply to sales of telecommunications services to another
telecommunications provider for the purposes of access,
interconnection, or resale to consumers. Charges or fees for
items on the periodic statement that are not public utility
services, including surcharges for telecommunications relay
services for the hearing impaired and fees for enhanced emergency
telephone systems, may not be included in the gross amount
subject to the measure of this tax. Such The purchasers or
consumers shall pay to such the public utilities the amount of
the tax levied pursuant to this section which shall be added to
and constitute a part of the cost of the service or property so
purchased or consumed and shall be collectible as such by said
the public utilities who shall account to the municipality levying same for all tax paid by such the purchasers or consumers
pursuant to the provisions of any ordinance imposing such the
tax.
Any ordinance imposing such the tax shall require the
collection thereof uniformly from all purchasers and consumers of
all such services and property within the corporate limits of
such the municipality and contain reasonable rules and
regulations governing the collection thereof by the utilities and
the method of its payment and accounting to the municipality:
Provided, That such the tax shall may not be effective until the
municipality gives sixty days' written notice by certified mail
to any utility doing business therein of the effective date of
the ordinance. Any required separation of gross income shall
occur in said the ordinance whenever necessary to comply with
state or federal law: Provided, however, That the tax authorized
by this section shall may not be levied upon charges for
telephone services which are paid by the insertion of coins
into coin-operated telephones, and specific charges for telephone
calls to points outside the taxing municipality: Provided
further, That specific charges for telephone calls to points
outside the taxing municipality shall be construed to mean
separately itemized or bulk-billed charges for long distance
telecommunications service to points outside the local exchange service area. The charges subject to the tax authorized by this
section include local usage charges applicable to telephone calls
originating within the corporate limits of the municipality which
imposes the tax, regardless of where the calls terminate, and
also include the federal subscriber line charge.
Notwithstanding any other provisions of the law to the
contrary contained in the code of West Virginia, one thousand
nine hundred thirty-one, as amended, the provisions of this
section are in addition to all other taxing authority heretofore
granted municipalities.
NOTE: The purpose of this bill is to clarify the meaning of
certain language that applies to telecommunications service with
respect to the municipal utilities tax.
Strike-throughs indicate language that would be stricken from
the present law, and underscoring indicates new language that
would be added.