FISCAL
NOTE
WEST virginia Legislature
2017 regular session
By
[
to the Committee on Agriculture and Natural Resources then Finance.
A BILL to amend the Code
of West Virginia, 1931, as amended, by adding thereto a new section, designated
§11-15-9o, relating to an exemption from the consumers sales and service tax
and use tax for sales of services and tangible personal property related to the
activities of raising and training livestock, including horses; setting forth legislative
intent; providing a method to resolve conflicts in law; providing an effective
date; providing definitions; and describing those sales of services and
tangible personal property that are exempt and providing method of claiming
exemption.
Be it enacted by the
Legislature of West Virginia:
That the Code of West
Virginia, 1931, as amended, be amended by adding thereto a new section,
designated §11-15-9o, to read as follows:
ARTICLE 15. Consumers Sales and Service Tax.
§11-15-9o. Exemption for Purchases of Tangible Personal
Property and Services for Use in Equestrian and Livestock Related Activities
Act.
(a) Legislative intent, interpretation and effective date. —
(1) Legislative intent.
-- The Legislature hereby finds that it is in the public's best interests to
promote livestock related activities. There is ample land in this state and
long-held cultural and historical traditions associated with the raising and training
of livestock. Further, livestock-related activities are compatible with the
preservation of green space in this state while at the same time are a
productive use of the land.
(2) Interpretation. --
To the degree that the provisions of this section conflict with any other
section of this code, including subdivision thirty-one, subsection-a, section
nine, article fifteen, of this chapter, the provisions of this section shall
control.
(3) Effective date. —
The provisions of this article shall take effect for all applicable sales of
services and tangible personal property made after July 1, 2017. For the
purposes of this section, the sale occurs when the service is rendered or the
transfer of tangible personal properly is made.
(b) Definitions. — For the purposes of this section, the following
terms shall be defined as follows. If a term is not defined herein, it shall be
ascribed its commonly-used meaning.
(1) Livestock. —
Tangible personal property consisting of domesticated beasts of burden
including horses, ponies, cattle, sheep, lambs, goats, donkeys and mules, which
labor for the benefit of humans.
(2) Equestrian activities
that pertain to the riding of horses or ponies.
(3) In-State. — Located
within the geographical boundaries of the State of West Virginia.
(4) Horse drivers. —
Individuals that command horses or ponies using reigns or a harness from a
sulky, buggy, wagon, sleigh, or similar vehicle.
(5) Tax. — The Consumers
Sales and Service Tax set forth by article fifteen, chapter eleven of the West
Virginia Code, and the Use Tax set forth by article fifteen-b, chapter eleven
of the West Virginia Code.
(6) Exempt.- - Not
subject to the Consumers Sales and Service Tax or Use Tax.
(c) Exempt sales of services and tangible personal property and method of
claiming exemption. — The
following sales of services and tangible personal property shall be considered
a per se exemption for the purposes of chapters fifteen and fifteen-a of the
West Virginia Code, meaning that no exemption certificate or direct pay permit
need be presented.
(1) Hauling services are
exempt if the service being performed consists solely of transporting livestock
with no sale involved, or if the service consists of delivering an animal that
fits the definition of livestock after a sale, and the vendor provides the
delivery service.
(2) Prize money is
exempt if it is awarded as the result of winning a livestock show, including
equestrian or other livestock performance that focuses on performance rather
than breed characteristics.
(3) The exemption for
sales of livestock in their original state that is set forth in subdivision
thirty-one, subsection-a, section nine, article fifteen, of this chapter of the
West Virginia Code shall remain in effect. The record-keeping requirements in
subdivision thirty-one, subsection-a, section nine, article fifteen, of this
chapter, shall no longer apply to these sales.
(4) The sale of
livestock is exempt if the livestock does not otherwise qualify for the exemption
that is set forth in subdivision thirty-one, subsection-a, section nine,
article fifteen, of this chapter.
(5) The fees received in
exchange for training livestock are exempt from the tax.
(6) The fees received in
exchange for training horse riders and drivers as well as handlers of livestock
are exempt from the tax.
(7) Boarding fees and
associated expenses are exempt from the tax if the animal being boarded meets
the definition of livestock.
(8) Commission fees
received for brokering the sale of livestock that is sold from in-state or
delivered in-state are exempt from the tax. Otherwise, the sourcing rules
contained in section fifteen, article fifteen-b, of this chapter, shall apply.
(9) Fees paid for
judging a livestock show, including a show that focuses on equestrian or other
livestock performance rather than breed characteristics, are exempt from the
tax.
NOTE: The purpose of this bill is
to specify an exemption from the consumers sales and service tax and use tax
for sales of services and tangible personal property rendered for use in
connection with raising and training livestock; set forth legislative intent;
provide a method to resolve conflicts in law; provide an effective date; provide
definitions; and describe those sales of services and tangible personal
property that are exempt and provide method of claiming exemption.
Strike-throughs indicate language
that would be stricken from a heading or the present law and underscoring indicates
new language that would be added.