Introduced Version
House Bill 3232 History
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Key: Green = existing Code. Red = new code to be enacted
H. B. 3232
(By Delegates Canterbury, Walters, Hamilton,
Evans and Azinger)
[Introduced February 21, 2011; referred to the
Committee on Roads and Transportation then Finance.]
A BILL to amend and reenact §11-15-3c of the Code of West Virginia,
1931, as amended, relating to consumers sales tax on motor
vehicles; exemptions; and providing an exemption on sales of
motor vehicles using natural gas or dual purpose motor
vehicles using a combination of gasoline and natural gas as
fuel.
Be it enacted by the Legislature of West Virginia:
That §11-15-3c of the Code of West Virginia, 1931, as amended,
be amended and reenacted to read as follows:
ARTICLE 15. CONSUMERS SALES AND SERVICE TAX.
§11-15-3c. Imposition of consumers sales tax on motor vehicle
sales; rate of tax; use of motor vehicle purchased
out of state; definition of sale; definition of
motor vehicle; exemptions; collection of tax by
Division of Motor Vehicles; dedication of tax to
highways; legislative and emergency rules.
(a) Notwithstanding any provision of this article or article
fifteen-a of this chapter to the contrary, beginning on July 1,
2008, all motor vehicle sales to West Virginia residents shall be
subject to the consumers sales tax imposed by this article.
(b) Rate of tax on motor vehicles. -- Notwithstanding any
provision of this article or article fifteen-a of this chapter to
the contrary, the rate of tax on the sale and use of a motor
vehicle shall be five percent of its sale price, as defined in
section two, article fifteen-b of this chapter: Provided, That so
much of the sale price or consideration as is represented by the
exchange of other vehicles on which the tax imposed by this section
or section four, article three, chapter seventeen-a of this code
has been paid by the purchaser shall be deducted from the total
actual sale price paid for the motor vehicle, whether the motor
vehicle be new or used.
(c) Motor vehicles purchased out of state. -- Notwithstanding
this article or article fifteen-a to the contrary, the tax imposed
by this section shall apply to all motor vehicles, used as defined
by section one, article fifteen-a of this chapter, within this
state, regardless of whether the vehicle was purchased in a state
other than West Virginia.
(d) Definition of sale. -- Notwithstanding any provision of
this article or article fifteen-a of this chapter to the contrary,
for purposes of this section, "sale", "sales" or "selling" means any transfer or lease of the possession or ownership of a motor
vehicle for consideration, including isolated transactions between
individuals not being made in the ordinary course of repeated and
successive business and also including casual and occasional sales
between individuals not conducted in a repeated manner or in the
ordinary course of repetitive and successive transactions.
(e) Definition of motor vehicle. -- For purposes of this
section, "motor vehicle" means every propellable device in or upon
which any person or property is or may be transported or drawn upon
a highway including, but not limited to: Automobiles; buses; motor
homes; motorcycles; motorboats; all-terrain vehicles; snowmobiles;
low-speed vehicles; trucks, truck tractors and road tractors having
a weight of less than fifty-five thousand pounds; trailers,
semitrailers, full trailers, pole trailers and converter gear
having a gross weight of less than two thousand pounds; and
motorboat trailers, fold-down camping trailers, traveling trailers,
house trailers and motor homes; except that the term "motor
vehicle" does not include: Modular homes, manufactured homes,
mobile homes, similar nonmotive propelled vehicles susceptible of
being moved upon the highways but primarily designed for habitation
and occupancy; devices operated regularly for the transportation of
persons for compensation under a certificate of convenience and
necessity or contract carrier permit issued by the Public Service
Commission; mobile equipment as defined in section one, article one, chapter seventeen-a of this code; special mobile equipment as
defined in section one, article one, chapter seventeen-a of this
code; trucks, truck tractors and road tractors having a gross
weight of fifty-five thousand pounds or more; trailers,
semitrailers, full trailers, pole trailers and converter gear
having weight of two thousand pounds or greater: Provided, That
notwithstanding the provisions of section nine, article fifteen,
chapter eleven of this code, the exemption from tax under this
section for mobile equipment as defined in section one, article
one, chapter seventeen-a of this code; special mobile equipment
defined in section one, article one, chapter seventeen-a of this
code; Class B trucks, truck tractors and road tractors registered
at a gross weight of fifty-five thousand pounds or more; and Class
C trailers, semitrailers, full trailers, pole trailers and
converter gear having weight of two thousand pounds or greater does
not subject the sale or purchase of the vehicle to the consumer
sales and service tax imposed by section three of this article.
(f) Exemptions. -- Notwithstanding any other provision of this
code to the contrary, the tax imposed by this section shall not be
subject to any exemption in this code other than the following:
(1) The tax imposed by this section does not apply to any
passenger vehicle offered for rent in the normal course of business
by a daily passenger rental car business as licensed under the
provisions of article six-d, chapter seventeen-a of this code. For purposes of this section, a daily passenger car means a motor
vehicle having a gross weight of eight thousand pounds or less and
is registered in this state or any other state. In lieu of the tax
imposed by this section, there is hereby imposed a tax of not less
than $1 nor more than $1.50 for each day or part of the rental
period. The Commissioner of Motor Vehicles shall propose an
emergency rule in accordance with the provisions of article three,
chapter twenty-nine-a of this code to establish this tax.
(2) The tax imposed by this section does not apply where the
motor vehicle has been acquired by a corporation, partnership or
limited liability company from another corporation, partnership or
limited liability company that is a member of the same controlled
group and the entity transferring the motor vehicle has previously
paid the tax on that motor vehicle imposed by this section. For
the purposes of this section, control means ownership, directly or
indirectly, of stock or equity interests possessing fifty percent
or more of the total combined voting power of all classes of the
stock of a corporation or equity interests of a partnership or
limited liability company entitled to vote or ownership, directly
or indirectly, of stock or equity interests possessing fifty
percent or more of the value of the corporation, partnership or
limited liability company.
(3) The tax imposed by this section does not apply where motor
vehicle has been acquired by a senior citizen service organization which is exempt from the payment of income taxes under the United
States Internal Revenue Code, Title 26 U.S.C. §501(c)(3) and which
is recognized to be a bona fide senior citizen service organization
by the Bureau of Senior Services existing under the provisions of
article five, chapter sixteen of this code.
(4) The tax imposed by this section does not apply to any
active duty military personnel stationed outside of West Virginia
who acquires a motor vehicle by sale within nine months from the
date the person returns to this state.
(5) The tax imposed by this section does not apply to motor
vehicles acquired by registered dealers of this state for resale
only.
(6) The tax imposed by this section does not apply to motor
vehicles acquired by this state or any political subdivision
thereof or by any volunteer fire department or duly chartered
rescue or ambulance squad organized and incorporated under the laws
of this state as a nonprofit corporation for protection of life or
property.
(7) The tax imposed by this section does not apply to motor
vehicles acquired by an urban mass transit authority, as defined in
article twenty-seven, chapter eight of this code, or a nonprofit
entity exempt from federal and state income tax under the Internal
Revenue Code for the purpose of providing mass transportation to
the public at large or designed for the transportation of persons and being operated for the transportation of persons in the public
interest.
(8) The tax imposed by this section does not apply to the
registration of a vehicle owned and titled in the name of a
resident of this state if the applicant:
(A) Was not a resident of this state at the time the applicant
purchased or otherwise acquired ownership of the vehicle;
(B) Presents evidence as the Commissioner of Motor Vehicles
may require of having titled the vehicle in the applicant's
previous state of residence;
(C) Has relocated to this state and can present such evidence
as the Commissioner of Motor Vehicles may require to show bona fide
residency in this state; and
(D) Makes application to the Division of Motor Vehicles for a
title and registration and pays all other fees required by chapter
seventeen-a of this code within thirty days of establishing
residency in this state as prescribed in subsection (a), section
one-a of this article.
(9) On and after January 1, 2009, the tax imposed by this
section does not apply to Class B trucks, truck tractors and road
tractors registered at a gross weight of fifty-five thousand pounds
or more or to Class C trailers, semitrailers, full trailers, pole
trailers and converter gear having a weight of two thousand pounds
or greater. If an owner of a vehicle has previously titled the vehicle at a declared gross weight of fifty-five thousand pounds or
more and the title was issued without the payment of the tax
imposed by this section, then before the owner may obtain
registration for the vehicle at a gross weight less than fifty-five
thousand pounds, the owner shall surrender to the commissioner the
exempted registration, the exempted certificate of title and pay
the tax imposed by this section based upon the current market value
of the vehicle.
(10) The tax imposed by this section does not apply to
vehicles leased by residents of West Virginia. On or after
January 1, 2009, a tax is imposed upon the monthly payments for the
lease of any motor vehicle leased under a written contract of lease
by a resident of West Virginia for a contractually specified
continuous period of more than thirty days, which tax is equal to
five percent of the amount of the monthly payment, applied to each
payment, and continuing for the entire term of the initial lease
period. The tax shall be remitted to the Division of Motor
Vehicles on a monthly basis by the lessor of the vehicle. Leases
of thirty days or less are taxable under the provisions of this
article and article fifteen-a of this chapter without reference to
this section.
(11) On and after July 1, 2011, the tax imposed by this
section does not apply to motor vehicles using natural gas as fuel
and dual purpose motor vehicles using both gasoline and natural gas as fuel.
(g) Division of Motor Vehicles to collect. -- Notwithstanding
any provision of this article, article fifteen-a and article ten of
this chapter to the contrary, the Division of Motor Vehicles shall
collect the tax imposed by this section: Provided, That such tax
is imposed upon the monthly payments for the lease of any motor
vehicle leased by a resident of West Virginia, which tax is equal
to five percent of the amount of the monthly payment, applied to
each payment, and continuing for the entire term of the initial
lease period. The tax shall be remitted to the Division of Motor
Vehicles on a monthly basis by the lessor of the vehicle.
(h) Dedication of tax to highways. -- Notwithstanding any
provision of this article or article fifteen-a of this chapter to
the contrary, all taxes collected pursuant to this section, after
deducting the amount of any refunds lawfully paid, shall be
deposited in the state Road Fund in the state Treasury and expended
by the Commissioner of Highways for design, maintenance and
construction of roads in the state highway system.
(i) Legislative rules; emergency rules. -- Notwithstanding any
provision of this article, article fifteen-a and article ten of
this chapter to the contrary, the Commissioner of Motor Vehicles
shall promulgate legislative rules explaining and implementing this
section, which rules shall be promulgated in accordance with the
provisions of article three, chapter twenty-nine-a of this code and should include a minimum taxable value and set forth instances when
a vehicle is to be taxed at fair market value rather than its
purchase price. The authority to promulgate rules includes
authority to amend or repeal those rules. If proposed legislative
rules for this section are filed in the state Register before
June 15, 2008, those rules may be promulgated as emergency
legislative rules as provided in article three, chapter twenty-
nine-a of this code.
(j) Notwithstanding any other provision of this code,
effective January 1, 2009, no municipal sales or use tax or local
sales or use tax or special downtown redevelopment district excise
tax or special district excise tax shall be imposed under article
twenty-two, chapter seven of this code or article thirteen, chapter
eight of this code or article thirteen-b of said chapter or article
thirty-eight of said chapter or any other provision of this code,
except this section, on sales of motor vehicles as defined in this
article or on any tangible personal property excepted or exempted
from tax under this section. Nothing in this subsection shall be
construed to prevent the application of the municipal business and
occupation tax on motor vehicle retailers and leasing companies.
NOTE: The purpose of this bill is to exempt the tax on sales
of motor vehicles using natural gas or dual purpose motor vehicles
using a combination of gasoline and natural gas as fuel.
Strike-throughs indicate language that would be stricken from
the present law, and underscoring indicates new language that would
be added.