WEST virginia Legislature
2017 regular session
By
[
to the Committee on Roads and Transportation then Finance.
A BILL to amend and
reenact §11-14C-5 of the Code of West Virginia, 1931, as amended, relating to
reducing the motor fuel excise tax.
Be it enacted by the
Legislature of West Virginia:
That §11-14C-5 of the Code of West Virginia, 1931, as
amended, be amended and reenacted to read as follows:
ARTICLE
14C. MOTOR FUEL EXCISE TAX.
§11-14C-5. Taxes levied; rate.
(a) There is hereby
levied on all motor fuel an excise tax composed of a flat rate equal to
$.205 of 20₵ per
invoiced gallon and, on alternative fuel, on each gallon equivalent, plus a
variable component comprised of:
(1) On motor fuel other than alternative fuel, either the
tax imposed by section eighteen-b, article fifteen of this chapter or the tax
imposed under section thirteen-a, article fifteen-a of this chapter, as
applicable. Provided, That the motor fuel excise tax shall
take effect January 1, 2004: Provided, however, That the variable
component shall be equal to five percent of the average wholesale price of the
motor fuel: Provided further, That the average wholesale price shall be
no less than $.97 per invoiced gallon and is computed as hereinafter prescribed
in this section: And provided
further, That on and after
January 1, 2010, the average wholesale price shall be no less than $2.34 per
invoiced gallon and is computed as hereinafter prescribed in this section; and
(2) On alternative fuel,
either the tax imposed by section eighteen-b, article fifteen of this chapter
or the tax imposed under section thirteen-a, article fifteen-a of this chapter,
as applicable. The tax on alternative
fuel takes effect on January 1, 2014, with a variable component equal to five
percent of the average wholesale price of the alternative fuel.
(b) Determination of
average wholesale price. B
(1) To simplify determining
the average wholesale price of all motor fuel, the Tax Commissioner shall,
effective with the period beginning the first day of the month of the effective
date of the tax and each January 1 thereafter, determine the average wholesale
price of motor fuel for each annual period on the basis of sales data gathered
for the preceding period of July 1 through October 31. Notification of the average wholesale price
of motor fuel shall be given by the Tax Commissioner at least thirty days in
advance of each January 1 by filing notice of the average wholesale price in the
State Register and by other means as the Tax Commissioner considers reasonable.
(2) The "average wholesale price" means the single, statewide average per gallon
wholesale price, rounded to the third decimal (thousandth of a cent), exclusive
of state and federal excise taxes on each gallon of motor fuel or on each
gallon equivalent of alternative fuel as determined by the Tax Commissioner
from information furnished by suppliers, importers and distributors of motor
fuel and alternative-fuel providers, alternative-fuel bulk end users and
retailers of alternative fuel in this state, or other information regarding
wholesale selling prices as the Tax Commissioner may gather or a combination of
information. In no event shall the
average wholesale price be determined to be less than $.97 per gallon of motor
fuel. For calendar year 2009, the
average wholesale price of motor fuel shall not exceed the average wholesale
price of motor fuel for calendar year 2008 as determined pursuant to the notice
filed by the Tax Commissioner with the Secretary of State on November 21, 2007,
and published in the State Register on November 30, 2007. On and after January 1, 2010, in no event
shall the average wholesale price be determined to be less than $2.34 per
gallon of motor fuel. On and after
January 1, 2011, the average wholesale price shall not vary by more than ten
percent from the average wholesale price of motor fuel as determined by the Tax
Commissioner for the previous calendar year.
Any limitation on the average wholesale price of motor fuel contained in
this subsection shall not be applicable to alternative fuel.
(3) All actions of the
Tax Commissioner in acquiring data necessary to establish and determine the
average wholesale price of motor fuel, in providing notification of his or her
determination prior to the effective date of a change in rate, and in
establishing and determining the average wholesale price of motor fuel may be
made by the Tax Commissioner without compliance with the provisions of article
three, chapter twenty-nine-a of this code.
(4) In an administrative
or court proceeding brought to challenge the average wholesale price of motor
fuel as determined by the Tax Commissioner, his or her determination is
presumed to be correct and shall not be set aside unless it is clearly
erroneous.
(c) (b) There is hereby levied a
floorstocks tax on motor fuel held in storage outside the bulk
transfer/terminal system as of the close of the business day preceding January
1, 2004, and upon which the tax levied by this section has not been paid. For the purposes of this section, "close
of the business day" means the time at which the last transaction has
occurred for that day. The floorstocks
tax is payable by the person in possession of the motor fuel on January 1,
2004. The amount of the floorstocks tax
on motor fuel is equal to the sum of the tax rate specified in subsection (a)
of this section multiplied by the gallons in storage as of the close of the
business day preceding January 1, 2004.
(1) Persons in possession
of taxable motor fuel in storage outside the bulk transfer/terminal system as
of the close of the business day preceding January 1, 2004, shall:
(A) Take an inventory at
the close of the business day preceding January 1, 2004, to determine the
gallons in storage for purposes of determining the floorstocks tax;
(B) Report no later than
January 31, 2004, the gallons on forms provided by the commissioner; and
(C) Remit the tax levied
under this section no later than June 1, 2004.
(2) In the event the tax
due is paid to the commissioner on or before January 31, 2004, the person
remitting the tax may deduct from their remittance five percent of the tax
liability due.
(3) In the event the tax
due is paid to the commissioner after June 1, 2004, the person remitting the
tax shall pay, in addition to the tax, a penalty in the amount of five percent
of the tax liability due.
(4) In determining the
amount of floorstocks tax due under this section, the amount of motor fuel in
dead storage may be excluded. There are
two methods for calculating the amount of motor fuel in dead storage:
(A) If the tank has a
capacity of less than ten thousand gallons, the amount of motor fuel in dead
storage is two hundred gallons and if the tank has a capacity of ten thousand
gallons or more, the amount of motor fuel in dead storage is four hundred
gallons; or
(B) Use the manufacturer's
conversion table for the tank after measuring the number of inches between the
bottom of the tank and the bottom of the mouth of the drainpipe: Provided, That the distance between
the bottom of the tank and the bottom of the mouth of the draw pipe is presumed
to be six inches.
(d) (c) Every licensee who, on the effective date
of any rate change, has in inventory any motor fuel upon which the tax or any
portion thereof has been previously paid shall take a physical inventory and
file a report thereof with the commissioner, in the format as required by the
commissioner, within thirty days after the effective date of the rate change,
and shall pay to the commissioner at the time of filing the report any
additional tax due under the increased rate.
(e) (d) The Tax Commissioner shall determine by
January 1, 2014, the gasoline gallon equivalent for each alternative fuel by
filing a notice of the gasoline gallon equivalent in the State Register and by
other means that the Tax Commissioner considers reasonable. The Tax Commissioner may redetermine the
gasoline gallon equivalent for each alternative fuel by filing a notice of the
gasoline gallon equivalent in the State Register at least thirty days in
advance of January 1 for the next succeeding tax year. For purposes of this notice, the Tax
Commissioner may adopt or incorporate by reference provisions of the National
Institute of Standards and Technology, United States Department of Commerce, the
Internal Revenue Code, United States Treasury Regulations, the Internal Revenue
Service publications or guidelines or other publications or guidelines which
may be useful in determining, setting or describing the gasoline gallon
equivalent for each alternative fuel used as motor fuel.
NOTE: The purpose of this bill is to reduce the tax
on motor fuel.
Strike-throughs indicate language
that would be stricken from a heading or the present law, and underscoring
indicates new language that would be added.