WEST virginia legislature
2019 regular session
Introduced
House Bill 2101
By Delegate Hornbuckle
[Introduced January
9, 2019; Referred
to the Committee on 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 soft drinks; modifying the tax to only cover sugary drinks; modifying the tax to two cents per ounce; redistributing the revenue generated to all three medical schools in the state; and providing for an effective date.
Be it enacted by the Legislature of West Virginia:
ARTICLE 19. SOFT DRINKS TAX.
§11-19-1. Definitions.
As used in this article:
(1) “Bottled soft drinks” shall include any and all
nonalcoholic beverages, whether carbonated or not, which are intended for
human consumption and contain any added caloric sweetener, 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, 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 beverages sweetened solely with noncaloric
sweeteners; water, carbonated or not, to which no caloric sweetener has been
added; fluid milk to which no flavoring has been added; or natural
undiluted fruit juice or vegetable juice.
(2) “Natural undiluted fruit juice” shall mean the original
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 the
original 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
(4) “Caloric sweetener” shall mean any
caloric substance suitable for human consumption that humans perceive as sweet
and includes, without limitation, sucrose, fructose, glucose, or other sugars. “Caloric
sweetener” excludes noncaloric sweeteners. For purposes of this definition, “caloric”
means a substance which adds calories to the diet of a person who consumes that
substance. sugar only, artificial or natural, which singularly flavors
the taste of a natural undiluted fruit juice or natural undiluted vegetable
juice
(5) “Soft drink syrups and powders” shall include 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 one or more other ingredients, including without
limitation, 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 syrups and 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
(6) “Simple syrup” shall mean 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
(7) (6)
“Person” shall mean and include an individual, firm, partnership, association, or
corporation, or any other legal entity.
(8) (7)
“Wholesale dealer” includes only those persons who sell any bottled soft drink
or soft drink syrup to retail dealers for the purpose of resale.
(9) (8)
“Retail dealer” includes every person other than a wholesale dealer who
sells or otherwise dispenses bottle soft drinks, or mixes, makes, compounds, or
manufactures mixing, making, compounding or manufacturing any drink
from a soft drink syrup or powder base, or a person selling such syrup or
powder.
(10) (9)
“Distributor” shall mean any person who receives, stores, manufactures,
bottles, produces, distributes and/or purchases for sale to retail
dealers any bottled soft drink or soft drink syrup or powder, whether or not
that person also sells such products to consumers.
(11) (10)
“Commissioner” means the state Tax Commissioner, and where the meaning of the context
requires, all deputies and employees duly authorized by him.
§ 11-19-2. Excise tax on
bottled soft drinks, syrups and powders dry mixtures; disposition
thereof.
(a)
For the purpose of providing revenue for the construction, maintenance and
operation of a four year school schools of medicine,
dentistry and nursing of in West Virginia University an
excise tax is hereby levied and imposed on and after midnight of the last
day of June, one thousand nine hundred fifty one upon the sale, use,
handling or distribution of all bottled soft drinks and all soft drink syrups and
powders, whether manufactured within or without this state. as
follows:
(b) Effective July 1, 2019, bottled soft drinks and soft drink syrups and powders will be taxed as follows:
(1) Bottled soft drinks shall be taxed at a rate of two cents per fluid ounce.
(2) Soft drink syrups and powders shall be taxed at a rate of two cents per ounce of soft drink produced from that syrup or powder. For purposes of calculating the tax, the volume of soft drink produced from syrups or powders shall be the larger of:
(A) The largest volume resulting from use of the syrups or powders per any manufacturer’s instructions, or
(B) The volume actually produced by the retail dealer, as reasonably determined by the commissioner.
(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
(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 liable for the excise tax hereby imposed. The excise tax hereby imposed shall 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.
(D)
All revenue collected by the commissioner under the provisions of this article,
less such costs of administration as are hereinafter provided for, shall be
paid by him into a special medical school fund, which is hereby created in the
state treasury, to be disbursed as follows: used solely for the
construction, maintenance and operation of a four-year school of medicine,
dentistry and nursing, as otherwise provided by law
(i) The first $18 million collected shall be for the continued use of a four-year school of medicine, dentistry and nursing at West Virginia University;
(ii) From the remaining revenue, $5 million shall be for the use of the school of medicine at Marshall University; and
(iii) From any remaining revenue, $3 million shall be for the use of the West Virginia Osteopathic School.
(iv) Any excess proceeds up to $55 million shall be directed by supplemental appropriation for teachers pay raises and annually distributed in accordance with §18A-4-5c of this code; and the remainder of any revenue collected shall be deposited in the General Revenue Fund of the state.
NOTE: The purpose of this bill is to change the structure of the tax on bottled soft drinks and soft drink syrups and powders to only cover soft drinks with added caloric sweeteners, increase the rate to two cents 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.