H. B. 4518
(By Delegates Beane, Mezzatesta and Michael)
[Introduced February 23, 1998; referred to the
Committee on Finance.]
A BILL to amend and reenact section three, article thirteen,
chapter eleven of the code of West Virginia, one thousand
nine hundred thirty-one, as amended, relating to
implementation of the findings, conclusions and
recommendations of the state tax commissioner and insurance
commissioner regarding the imposition of municipal
occupation and business taxes on health maintenance
organizations.
Be it enacted by the Legislature of West Virginia:
That section three, article thirteen, chapter eleven of the
code of West Virginia, one thousand nine hundred thirty-one, as
amended, be amended and reenacted to read as follows:
ARTICLE 13. BUSINESS AND OCCUPATION TAX.
§11-13-3. Exemptions; transitional increase of annual exemption and periods thereof.
For any tax imposed under the provisions of this article
with respect to any period prior to the first day of July, one
thousand nine hundred eighty-three, there shall be an exemption in every case of fifty dollars in amount of tax computed under
the provisions of this article. A person exercising a privilege
taxable hereunder for a fractional part of a tax year shall be
entitled to an exemption of the sum bearing the proportion to
fifty dollars that the period of time the privilege is exercised
bears to a whole year. Only one exemption shall be allowed to
any one person, whether he exercises one or more privileges
taxable hereunder.
For any tax imposed under the provisions of this article
with respect to: (a) The period beginning on and after the first
day of July, one thousand nine hundred eighty-three, and through
the thirtieth day of June, one thousand nine hundred eighty-four,
there shall be an exemption in every case of twenty-five dollars
per month; (b) the period beginning on and after the first day of
July, one thousand nine hundred eighty-four, and through the
thirtieth day of June, one thousand nine hundred eighty-five,
there shall be an exemption in every case of thirty-three dollars
and thirty-three cents per month; and (c) the period beginning on
or after the first day of July, one thousand nine hundred
eighty-five, there shall be an exemption in every case of
forty-one dollars and sixty-seven cents per month in amount of
tax computed under the provisions of this article. Only one
exemption shall be allowed to any one person, whether he
exercises one or more privileges taxable hereunder.
The provisions of this article shall not apply to: (a)
Insurance companies which pay the state of West Virginia a tax
upon premiums:
Provided, That said exemption shall not extend to that part of the gross income of insurance companies which is
received for the use of real property, other than property in
which any such company maintains its office or offices, in this
state, whether such income be in the form of rentals or
royalties; (b) nonprofit cemetery companies organized and
operated for the exclusive benefit of their members; (c)
fraternal societies, organizations and associations organized and
operated for the exclusive benefit of their members and not for
profit:
Provided, however, That said exemption shall not extend
to that part of the gross income arising from the sale of
alcoholic liquor, food and related services of such fraternal
societies, organizations and associations which are licensed as
private clubs under the provisions of article seven, chapter
sixty of this code; (d) corporations, associations and societies
organized and operated exclusively for religious or charitable
purposes; (e) production credit associations, organized under the
provisions of the federal "Farm Credit Act of 1933"; (f) any
credit union organized under the provisions of chapter thirty-one
or any other chapter of this code:
Provided further, That the
exemptions of this section shall not apply to corporations or
cooperative associations organized under the provisions of
article four, chapter nineteen of this code; (g) gross income
derived from advertising service rendered in the business of
radio and television broadcasting;
and (h) the gross income or
gross proceeds of sale of a gasification or liquefaction of coal
project in the demonstration, pilot or research stages:
And
provided further, That prior to the commencement of operation of any such project, the tax commissioner shall have first certified
the project as eligible for such exemption:
And provided
further, That such exemption shall expire seven years from the
date the project first receives gross income or gross proceeds
from sales;
and (i) a health maintenance organization holding a
certificate of authority under the provisions of article
twenty-five-a, chapter thirty-three of this code, shall be exempt
from the tax imposed under the provisions of this article and
from municipal business and occupation taxes imposed pursuant to
section five, article thirteen of chapter eight of this code on
gross income it receives from its enrollees, or from their
employers or others on their behalf, for health care items or
services provided, directly or indirectly, by the health
maintenance organization: And provided further, That this
exemption applies to taxable years beginning after the
thirty-first day of December, one thousand nine hundred
ninety-six: And provided further, That this exemption shall not
extend to that part of the gross income of health maintenance
organizations which is received from the use of real property,
other than property in which any such company maintains its
office or offices, in this state, whether such income is in the
form of rentals or royalties.
NOTE: The purpose of this bill is to implement the
findings, conclusions, and recommendations of the Insurance
Commissioner and Tax Commissioner issued pursuant to West
Virginia Code §33-25A-24(f) regarding the imposition of municipal
business and occupation tax on health maintenance organizations.
Strike-throughs indicate language that would be stricken from the present law and underscoring indicates new language
which would be added.
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