COMMITTEE SUBSTITUTE
FOR
H. B. 3017
(By Delegates Campbell and Canterbury)
(Originating in the Committee on Finance)
[March 26, 2009]
A BILL to amend the Code of West Virginia, 1931, as amended, by
adding thereto a new section, designated §11-15-9l, relating
to exempting tax-exempt organizations engaged in retail sales
of clothing and clothing accessories from the consumers sales
tax; authorizing the Tax Commissioner to designate the
exemption as a per se exemption, thus exemption certificates
would not be required.
Be it enacted by the Legislature of West Virginia:
That the Code of West Virginia, 1931, as amended, be amended
by adding thereto a new section, designated §11-15-9l, to read as
follows:
ARTICLE 15. CONSUMERS SALES AND SERVICE TAX.
§11-15-9l. Exemption for Sales of clothing and clothing
accessories by tax-exempt organizations.
(a) Sales of clothing and clothing accessories by
organizations that are exempt from federal income taxes under Section 501(c)(3) or Section 501(c)(4) of the Internal Revenue Code
of 1986, as amended, and that have annual revenue obtained from the
sales of less than $40,000, are exempt from the tax imposed under
this article and article fifteen-a of this chapter: Provided, That
the purpose of the sale is to obtain revenue for the activities and
functions of the organization, and the revenue obtained is exempt
from federal income tax and actually expended for that purpose:
Provided, however, That the clothing and clothing accessories sold
are acquired or obtained by donation only, without compensation,
remuneration or consideration to the donor. The Tax Commissioner
may, by rule, specify the exemption authorized in this section to
be a "per se" exemption for which exemption certificates are not
required.