WEST virginia Legislature

2016 regular session

Introduced

Senate Bill 604

By Senators Takubo and Stollings

[Introduced February 15, 2016;
Referred to the Committee on Finance.]

A BILL to amend and reenact §11-19-2 of the Code of West Virginia, 1931, as amended, relating to increasing the excise tax on bottled soft drinks, syrups and dry mixtures; dedicating eighty percent of the proceeds to the benefit of the four-year School of Medicine, Dentistry and Nursing of West Virginia University, the Joan C. Edwards School of Medicine of Marshall University and the West Virginia School of Osteopathic Medicine; and dedicating twenty percent of the increase to the West Virginia Department of Health and Human Resources to be used for the expansion of Medicaid beginning in the year 2017.

Be it enacted by the Legislature of West Virginia:

That §11-19-2 of the Code of West Virginia, 1931, as amended, be amended and reenacted to read as follows:

ARTICLE 19. SOFT DRINKS TAX.

§11-19-2. Excise tax on bottled soft drinks, syrups and dry mixtures; disposition thereof.

(a) 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 June 30, 1951, 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:

(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.

(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.

b) (1) Notwithstanding the provisions of subsection (a) of this section, an excise tax is hereby levied and imposed effective July 1, 2016, upon the sale, use, handling or distribution of all bottled soft drinks and all soft drink syrups, whether manufactured within or without this state, so that the total excise tax levied and imposed by this amendment and section shall be as follows:

(A) On each bottled soft drink, a tax of five cents on each sixteen and nine-tenths fluid ounces, or fraction thereof, or on each one-half liter, or fraction thereof contained therein.

(B) On each gallon of soft drink syrup, a tax of $4, and in like ratio on each part four liters thereof.

(C) On each ounce by weight of dry mixture or fraction thereof used for making soft drinks, a tax of five cents on each 28.35 grams, or fraction thereof.

(2) Forty percent of the total amount collected pursuant to this subsection shall be used for the continued maintenance and operation of the four-year school of medicine, dentistry and nursing of West Virginia University.

(3) Twenty percent of the total amount collected pursuant to this subsection shall be used for the continued maintenance and operation of the Joan C, Edwards School of Medicine of Marshall University.

(4) Twenty percent of the total amount collected pursuant to this subsection shall be used for the continued maintenance and operation of the West Virginia School of Osteopathic Medicine.

(5) Twenty percent of the total amount collected pursuant to this subsection shall be used by The West Virginia Department of Health and Human Resources to fund the Medicaid expansion beginning in the year 2017.

(c) 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 is liable for the excise tax hereby imposed. The excise tax hereby imposed shall may 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 The revenue collected by the commissioner under the provisions of this article, less such the costs of administration as are hereinafter provided for, shall be paid by him or her (1) 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 the four-year school of medicine, dentistry and nursing of West Virginia University, the Joan C, Edwards School of Medicine of Marshall University, the West Virginia School of Osteopathic Medicine; and (2) into a special Medicaid fund, which is hereby created in the State Treasury, to be used solely to fund the Medicaid expansion beginning in the year 2017, as otherwise provided by law. 

NOTE: The purpose of this bill is to increase the excise tax on bottled soft drinks, syrups and dry mixtures; and dedicate the proceeds to the benefit of the four-year school of medicine, dentistry and nursing of West Virginia University, the Joan C, Edwards School of Medicine of Marshall University, the West Virginia School of Osteopathic Medicine and the West Virginia Department of Health and Human Resources to be used for the expansion of Medicaid beginning in the year 2017.  The increase is from one cent to five cents on the bottled soft drinks and proportionally on syrups and dry mixtures.

Strike-throughs indicate language that would be stricken from a heading or the present law, and underscoring indicates new language that would be added.