WEST 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.