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Introduced Version House Bill 3085 History

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Key: Green = existing Code. Red = new code to be enacted

FISCAL NOTEWEST virginia Legislature

2017 regular session

Introduced

House Bill 3085

By Delegate Ellington

[Introduced March 14, 2017; Referred
to the Committee on Health and Human Resources then Finance.]

A BILL to amend and reenact §11-19-1 and §11-19-2 of the Code of West Virginia, 1931, as amended, all relating to the tax on bottled soft drinks; modifying the tax to 1¢ per ounce; redistributing the revenue generated to all three medical schools in the state; rearranging and updating definitions; and providing an effective date.

Be it enacted by the Legislature of West Virginia:


That §11-19-1 and §11-19-2 of the Code of West Virginia, 1931, as amended, be amended and reenacted, all to read as follows:

ARTICLE 19. SOFT DRINKS TAX.


§11-19-1. Definitions.


As used in this article:

(1) "Bottled soft drinks" shall include includes any and all nonalcoholic beverages, whether carbonated or not, such as soda water, ginger ale, coca cola, lime cola, pepsi cola, doctor pepper, root beer, carbonated water, orangeade, lemonade, fruit juice when any plain or carbonated water, flavoring or syrup is added, or any and all preparations commonly referred to as "soft drinks" of whatever kind, which are closed and sealed in glass, plastic, paper, or any other type of container, envelope, package or bottle, whether manufactured with or without the use of any syrup. The term "bottled soft drinks" shall not include fluid milk to which no flavoring has been added, or natural undiluted fruit juice or vegetable juice.

(11) "Commissioner" means the State Tax Commissioner, and where the meaning of the context requires, all deputies and employees duly authorized by him or her.

(10) "Distributor" shall mean means any person who manufactures, bottles, produces or purchases for sale to retail dealers any bottled soft drink or soft drink syrup.

(2) "Natural undiluted fruit juice" shall mean means the liquid resulting from the pressing of fruit with or without sweetener being added, or the liquid resulting from the reconstitution of natural fruit juice concentrate by the restoration of water to dehydrated natural fruit juice with or without sweetener being added.

(3) "Natural undiluted vegetable juice" shall mean means the liquid resulting from the pressing of vegetables with or without sweetener being added or the liquid resulting from the reConstitution of natural vegetable juice concentrate by the restoration of water to dehydrated natural vegetable juice with or without sweetener being added.

(7) "Person" shall mean means and include includes an individual, firm, partnership, association or corporation.

(9) "Retail dealer" includes every person other than a wholesale dealer mixing, making, compounding or manufacturing any drink from a soft drink syrup or powder base, or a person selling such syrup or powder.

(6) "Simple syrup" shall mean means the making, mixing, compounding or manufacturing, by dissolving sugar and water or any other mixtures that will create simple syrup to which may or may not be added concentrates or extracts.

(5) "Soft drink syrups and powders" shall include includes the compound mixture or the basic ingredients, whether dry or liquid, practically and commercially usable in making, mixing or compounding soft drinks by the mixing thereof with carbonated or plain water, ice, fruit, milk or any other product suitable to make a soft drink, among such syrups being such products as coca cola syrup, chero cola syrup, pepsi cola syrup, doctor pepper syrup, root beer syrup, nu-grape syrup, lemon syrup, vanilla syrup, chocolate syrup, cherry smash syrup, rock candy syrup, simple syrup, chocolate drink powder, malt drink powder, or any other prepared syrups or powders sold or used for the purpose of mixing soft drinks commercially at soda fountains, restaurants or similar places as well as those powder bases prepared for the purpose of domestically mixing soft drinks such as kool aid, oh boy drink, tip top, miracle aid and all other similar products.

(4) "Sweetener" shall mean means sugar only, artificial or natural, which singularly flavors the taste of a natural undiluted fruit juice or natural undiluted vegetable juice.

(8) "Wholesale dealer" includes only those persons who sell any bottled soft drink or soft drink syrup to retail dealers for the purpose of resale.


§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 effective 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 1¢ 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 80¢, and in like ratio on each part gallon thereof, or on each four liters of soft drink syrup a tax of 84¢, 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 1¢ or on each 28.35 grams, or fraction thereof, a tax of 1¢.

(b) 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.

(c) All 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 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.

(d) (1) Effective July 1, 2017, the rate of tax imposed pursuant to subsection (a) of this section is levied at the rate of 1¢ per every one ounce of bottled soft drink and the provisions of subsection (a) are superseded by this subsection.

(2) The revenue collected by the commissioner under the provisions of this article, less the costs of administration as are hereinafter provided for, shall be paid by him or her into a special Medical School Fund, which is created in the State Treasury, to be disbursed as follows:

(A) The first $20 million collected is for the continued use of a four-year school of medicine, dentistry and nursing at West Virginia University;

(B) From the remaining revenue, $5 million is for the use of the School of Medicine at Marshall University; and

(C) From any remaining revenue, $5 million is for the use of the West Virginia Osteopathic School.

(3) Any funds remaining following the distribution set forth in subdivision (2) of this subsection is dedicated to the Bureau for Medical Services to help fund services for eligible recipients.


 

NOTE: The purpose of this bill is to change the structure of the tax on bottled soft drinks to 1¢ per ounce and to rededicate the proceeds to all three medical schools in the state.

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

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