COMMITTEE SUBSTITUTE

FOR

Senate Bill No. 419

(By Senator Craigo, Boley, Deem, Sprouse, Ball, Dawson, Mitchell, Minear, Redd, Plymale, Walker, Snyder, Kessler, Love and Edgell)

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[Originating in the Committee on Finance;

reported March 1, 2000.]

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A BILL to amend and reenact section two, article nineteen, chapter eleven of the code of West Virginia, one thousand nine hundred thirty-one, as amended; and to further amend said article by adding thereto a new section, designated section three, all relating to the repeal of the soft drinks tax over a period of five years; deposits of tax revenue to general revenue; and reduction of amounts taken as discounts.

Be it enacted by the Legislature of West Virginia:
That section two, article nineteen, chapter eleven of the code of West Virginia, one thousand nine hundred thirty-one, as amended, be amended and reenacted; and that said article be further amended by adding thereto a new section, designated section three, all to read as follows:
ARTICLE 19. SOFT DRINKS TAX.
§11-19-2. Excise tax on bottled soft drinks, syrups and dry mixtures; disposition thereof.

For the purpose of providing revenue for the construction, maintenance and operation of a four-year school of medicine, dentistry and nursing of 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, whether manufactured within or without this state., as follows: Subject to the provision of section three of this article, the rate of tax shall be as follows:
(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; and
(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.
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.
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 used solely for the construction, maintenance and operation of a four-year school of medicine, dentistry and nursing, as otherwise provided by law the state fund, general revenue, for appropriation by the Legislature.
§11-19-3. Repeal of tax; rates of tax.
(a) On and after the first day of July, two thousand ten, the tax imposed by this article shall be repealed and of no further effect. On and after midnight of the first day of July, two thousand, the rate of tax imposed upon the sale, use, handling or distribution of all bottled soft drinks and all soft drink syrups, whether manufactured within or without this state shall be reduced by ten percent: Provided, That at midnight on the first day of each fiscal year for the nine years thereafter, the tax shall be reduced an additional ten percent until the tax is fully repealed.
(b) Notwithstanding the provisions of section five of this article, on and after midnight on the first day of July, two thousand, the amount of the discount allowed under that section shall be reduced by an amount equal to the reduction in the rate of tax in that same year: Provided, That in the fiscal year two thousand two the remainder of the discount shall be repealed.