HB2816 HFA Butler 3-27 #1

Rose 3348

 

Delegate Butler move to amend the bill on page 2, following line 11 and the article heading, by inserting the following:

Ҥ11-15-3. Amount of tax; allocation of tax and transfers.


(a) Vendor to collect. – For the privilege of selling tangible personal property or custom software and for the privilege of furnishing certain selected services defined in sections two and eight of this article, the vendor shall collect from the purchaser the tax as provided under this article and article fifteen-b of this chapter, and shall pay the amount of tax to the Tax Commissioner in accordance with the provisions of this article or article fifteen-b of this chapter.

(b) Amount of tax.  ̶  The general consumer sales and service tax imposed by this article shall be at the rate of six cents on the dollar percent of the sales price of sales tangible personal property, custom software or taxable services purchased, excluding gasoline and special fuel 

sales, which remain taxable at the rate of five cents percent: on the dollar of sales Provided, That

on and after July 1, 2017, the tax imposed by this article shall be six and one-half percent of the purchase price, excluding sales of motor fuels, which remain taxable at the rate of five percent of the average wholesale selling price of motor fuel: Provided, however, That this increase in the rate of tax adopted pursuant to the reenactment of this section during the 2017 Regular Session of the Legislature shall expire on June 30, 2020, so long as the balance of funds as of June 30, 2019, in the Revenue Shortfall Reserve Fund and the Revenue Shortfall Reserve Fund – Part B, established in section twenty, article two, chapter eleven-b of this code equals or exceeds fifteen percent of the general revenue fund budgeted for the fiscal year commencing on July 1, 2019.

(c) Calculation tax on fractional parts of a dollar until January 1, 2004. -B There shall be no tax on sales where the monetary consideration is 54 or less. The amount of the tax shall be computed as follows:

(1) On each sale, where the monetary consideration is from 64 to 164, both inclusive, 14.

(2) On each sale, where the monetary consideration is from 174 to 334, both inclusive, 24.

(3) On each sale, where the monetary consideration is from 344 to 504, both inclusive, 34.

(4) On each sale, where the monetary consideration is from 514 to 674, both inclusive, 44.

(5) On each sale, where the monetary consideration is from 684 to 844, both inclusive, 54.

(6) On each sale, where the monetary consideration is from 854 to $1, both inclusive, 64.

(7) If the sale price is in excess of $1, 64 on each whole dollar of sale price, and upon any fractional part of a dollar in excess of whole dollars as follows: 14 on the fractional part of the dollar if less than 174; 24 on the fractional part of the dollar if in excess of 164 but less than 344; 34 on the fractional part of the dollar if in excess of 334 but less than 514; 44 on the fractional part of the dollar if in excess of 504 but less than 684; 54 on the fractional part of the dollar if in excess of 674 but less than 854; and 64 on the fractional part of the dollar if in excess of 844. For example,

the tax on sales from $1.01 to $1.16, both inclusive, 74; on sales from $1.17 to $1.33, both inclusive, 84; on sales from $1.34 to $1.50, both inclusive, 94; on sales from $1.51 to $1.67, both inclusive, 104; on sales from $1.68 to $1.84, both inclusive, 114 and on sales from $1.85 to $2, both inclusive, 124: Provided, That beginning January 1, 2004, tax due under this article shall be calculated as provided in subsection (d) of this subsection and this subsection (c) does not apply to sales made after December 31, 2003.

(d) (c) Calculation of tax on fractional parts of a dollar after December 31, 2003. – Beginning January 1, 2004, the tax computation under subsection (b) of this section shall be carried to the third decimal place, and the tax rounded up to the next whole cent whenever the third decimal place is greater than four and rounded down to the lower whole cent whenever the third decimal place is four or less. The vendor may elect to compute the tax due on a transaction on a per item basis or on an invoice basis provided the method used is consistently used during the reporting period.

(e) (d) No aggregation of separate sales transactions, exception for coin-operated devices.  ̶  Separate sales, such as daily or weekly deliveries, shall not be aggregated for the purpose of computation of the tax even though the sales are aggregated in the billing or payment therefor. Notwithstanding any other provision of this article, coin-operated amusement and vending machine sales shall be aggregated for the purpose of computation of this tax.

(f) (e) Rate of tax on certain mobile homes. – Notwithstanding any provision of this article to the contrary, after December 31, 2003, the tax levied on sales of mobile homes to be used by the owner thereof as his or her principal year-round residence and dwelling shall be an amount equal to six percent of fifty percent of the sales price: Provided, That on and after July 1, 2017, notwithstanding any provision of this article to the contrary, the tax levied on sales of mobile homes to be used by the owner thereof as his or her principal year-round residence and dwelling

shall be an amount equal to six and one-half percent of fifty percent of the sales price: Provided, however, That should the rate of tax imposed in subsection (b) of this section revert to six percent as of a specified date, the tax imposed on sales of certain mobile homes shall similarly revert to six percent of fifty percent of the sales price.

(g) (f) Construction; custom software. – After December 31, 2003, whenever Whenever the words "tangible personal property" or "property" appear in this article, the same shall also include the words "custom software".

(h) (g) Computation of tax on sales of gasoline and special fuel. – The method of computation of tax provided in this section does not apply to sales of gasoline and special fuel.

(h) Notwithstanding any provision of this code to the contrary, on and after July 1, 2017, when the words “six percent” appear in this article or article fifteen of this chapter they shall mean the rate of the tax specified in subsection (b) of this section.”;

and on page 18, following line 389, by inserting the following:

“ARTICLE 15A. USE TAX.


§11-15A-2. Imposition of tax; six percent tax rate; inclusion of services as taxable; transition rules; allocation of tax and transfers.

(a) An excise tax is hereby levied and imposed on the use in this state of tangible personal property, custom software or taxable services, to be collected and paid as provided in this article

or article fifteen-b of this chapter, at the rate of six percent of the purchase price of the property or taxable services, except as otherwise provided in this article: Provided, That on and after July 1, 2017, the tax imposed by this article shall be collected and paid, as provided in this article or article fifteen-b of this chapter, at the rate of six and one-half percent of the purchase price of the tangible personal property, custom software or taxable services, except as otherwise provided in this article: Provided, however, That the one-half percent increase in the tax on the purchase price adopted pursuant to the reenactment of this section during the 2017 Regular Session of the Legislature shall expire on June 30, 2020, so long as the balance of funds as of June 30, 2019, in the Revenue Shortfall Reserve Fund and the Revenue Shortfall Reserve Fund – Part B, established in section twenty, article two, chapter eleven-b of this code equals or exceeds fifteen percent of the general revenue fund budgeted for the fiscal year commencing on July 1, 2019.

(b) Calculation of tax on fractional parts of a dollar. – The tax computation under subsection (a) of this section shall be carried to the third decimal place and the tax rounded up to the next whole cent whenever the third decimal place is greater than four and rounded down to the lower whole cent whenever the third decimal place is four or less. The vendor may elect to compute the tax due on a transaction on a per item basis or on an invoice basis provided the method used is consistently used during the reporting period.

(c) "Taxable services," for the purposes of this article, means services of the nature that are subject to the tax imposed by article fifteen of this chapter. In this article, wherever the words "tangible personal property" or "property" appear, the same shall include the words "or taxable services," where the context so requires.

(d) Use tax is hereby imposed upon every person using tangible personal property, custom software or taxable service within this state. That person's liability is not extinguished until the tax has been paid. A receipt with the tax separately stated thereon issued by a retailer engaged in

business in this state, or by a foreign retailer who is authorized by the Tax Commissioner to collect the tax imposed by this article, relieves the purchaser from further liability for the tax to which the receipt refers.

(e) Purchases of tangible personal property or taxable services made for the government of the United States or any of its agencies by ultimate consumers is subject to the tax imposed by this section. Industrial materials and equipment owned by the federal government within the State of West Virginia of a character not ordinarily readily obtainable within the state, is not subject to use tax when sold, if the industrial materials and equipment would not be subject to use taxes if sold outside of the state for use in West Virginia.

(f) This article does not apply to purchases made by counties or municipal corporations.

(g) Notwithstanding any provisions of this code to the contrary, on and after July 1, 2017, when the words “six percent” appear in subsection (c), section ten of this article, those words shall mean “a percentage equal to the use tax rate” specified in subsection (a) of this section.”;

and by amending the enacting section to read as follows:


“That §11-13X-4 and §11-13X-13 of the Code of West Virginia, 1931, as amended, be amended and reenacted; that §11-15-3 and §11-15-9 of said code be amended and reenacted; that §11-15A-2 of said code be amended and reenacted; and that §11-16-13 of said code be amended and reenacted, all to read as follows:”

 

Adopted

Rejected