Senate Bill No. 401
(By Senators Sharpe, Ross, Minard, Humphreys and Helmick)
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[Introduced February 21, 1994; referred to the Committee
on Transportation; and then to the Committee on Finance.]
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A BILL to amend and reenact sections two and five, article
fourteen, chapter eleven of the code of West Virginia, one
thousand nine hundred thirty-one, as amended, relating to
exempting the use of alternative motor vehicle fuels from
the gasoline and special fuel excise tax; permanently
exempting use of alternative fuels by any state, political
subdivision or agency thereof; and exempting all other
alternative fuel users for ten years but phasing the
exemption out thereafter.
Be it enacted by the Legislature of West Virginia:
That sections two and five, article fourteen, 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 14. GASOLINE AND SPECIAL FUEL EXCISE TAX.
§11-14-2. Definitions.
For purposes of this article:
(1) "Actual metered gallons" means, in addition to amountscomputed by mechanical devices which measure and record directly
in digital terms, all amounts computed by other methods of
computing quantities commonly employed by persons engaged in the
sale of petroleum products, including, but not limited to, tank
or barge strappings and other graduated lineal devices.
(2) "Aircraft fuel" means gasoline and special fuel suitable
for use in any aircraft engine.
(3) "Alternative fuels" means compressed natural gas,
liquefied natural gas, liquefied petroleum gas, methanol,
ethanol, fuel mixtures containing eighty-five percent or more by
volume of methanol, ethanol and other alcohols with gasoline or
other fuels, coal-derived liquid fuels and electricity (including
electricity from solar energy).
(3) (4) "Commissioner" or "tax commissioner" means the tax
commissioner of the state of West Virginia or his duly authorized
agent.
(4) (5) "Distributor" or "producer" means and includes every
person:
(a) Who produces, manufactures, processes or otherwise
alters gasoline or special fuel in this state for use or for
sale; or
(b) Who engages in this state in the sale of gasoline or
special fuel for the purpose of resale or for distribution; or
(c) Who receives gasoline or special fuel into the cargo
tank of a tank wagon in this state for use or sale by such
person.
(5) (6) "Gallon" means two hundred thirty-one cubic inches
of liquid measurement, by volume:
Provided, That the
commissioner may by rule and regulation prescribe other
measurement or definition of gallon.
(6) (7) "Gasoline" means any product commonly or
commercially known as gasoline, regardless of classification,
suitable for use as fuel in an internal combustion engine, except
special fuel as hereinafter defined.
(7) (8) "Highway" means every way or place of whatever
nature open to the use of the public as a matter of right for the
purpose of vehicular travel, which is maintained by this state or
some taxing subdivision or unit thereof or the federal government
or any of its agencies.
(8) (9) "Importer" means every person, resident or
nonresident, other than a distributor, who receives gasoline or
special fuel outside this state for use, sale or consumption
within this state, but shall not include the fuel in the supply
tank of a motor vehicle, or a person paying the motor carrier
road tax as provided for in article fourteen-a of this chapter.
(9) (10) "Motor carrier" means any passenger vehicle which
has seats for more than nine passengers in addition to the
driver, or any road tractor, or any tractor truck, or any truck
having more than two axles which is operated or caused to be
operated by any person on any highway in this state.
(10) (11) "Motor vehicle" means automobiles, motor carriers,
motor trucks, motorcycles and all other vehicles or equipment,engines or machines which are operated or propelled by combustion
of gasoline or special fuel.
(11) (12) "Person" means and includes any individual, firm,
partnership, limited partnership, joint
adventure venture,
association, company, corporation, organization, syndicate,
receiver, trust, or any other group or combination acting as a
unit, in the plural as well as the singular number, and means and
includes the officers, directors, trustees, or members of any
firm, partnership, limited partnership, joint
adventure venture,
association, company, corporation, organization, syndicate,
receiver, trust, or any other group or combination acting as a
unit, in the plural as well as the singular number, unless the
intention to give a more limited meaning is disclosed by the
context.
(12) (13) "Petroleum carrier" means any person who hauls or
transports gasoline or special fuel within this state or on any
navigable rivers which are within the jurisdiction of this state.
(13) (14) "Purchase" means and includes any acquisition of
ownership of property or of a security interest for a
consideration.
(14) (15) "Receive" means any acquisition of ownership or
possession of gasoline or special fuel.
(15) (16) "Retail dealer" means any person not a distributor
or producer who sells gasoline or special fuel from a fixed
location in this state to users.
(16) (17) "Sale" means any transfer, exchange, gift, barter,or other disposition of any property or security interest for a
consideration.
(17) (18) "Special fuel" means any gas or liquid, other than
gasoline, used or suitable for use as fuel in an internal
combustion engine. The term "special fuel" shall include
products commonly known as natural or casinghead gasoline, but
shall not include any petroleum product or chemical compound such
as alcohol, industrial solvent, heavy furnace oil, lubricant,
etc., not commonly used nor practicably suited for use as fuel in
an internal combustion engine.
(18) (19) "Supply tank" means any receptacle on a motor
vehicle from which gasoline or special fuel is supplied for the
propulsion of the vehicle or equipment located thereon, exclusive
of a cargo tank. A supply tank includes a separate compartment
of a cargo tank used as a supply tank, and any auxiliary tank or
receptacle of any kind from which gasoline or special fuel is
supplied for the propulsion of the vehicle, whether or not such
tank or receptacle is directly connected to the fuel supply line
of the vehicle.
(19) (20) "Tank wagon" means and includes any motor vehicle
or vessel with a cargo tank or cargo tanks ordinarily used for
making deliveries of gasoline or special fuel or both for sale or
use.
(20) (21) "Tax" includes, within its meaning, interest,
additions to tax and penalties, unless the intention to give it
a more limited meaning is disclosed by the context.
(21) (22) "Taxpayer" means any person liable for any tax,
interest, additions to tax or penalty under the provisions of
this article.
(22) (23) "User" means any person who purchases gasoline or
special fuel for use as fuel and uses such fuel in an internal
combustion engine owned or operated by such person.
§11-14-5. Exemptions from tax.
There shall be exempted from the excise tax on gasoline or
special fuel imposed by this article the following:
(1) All gallons of gasoline or special fuel exported from
this state to any other state or nation.
(2) All gallons of gasoline or special fuel sold to and
purchased by the United States or any agency thereof when
delivered in bulk quantities of five hundred gallons or more.
(3) All gallons of gasoline or special fuel sold to and
purchased by a county board of education when delivered in bulk
quantities of five hundred gallons or more.
(4) All gallons of gasoline or special fuel sold pursuant to
a government contract, in bulk quantities of five hundred gallons
or more, for use in conjunction with any municipal, county, state
or federal civil defense or emergency service program, or to any
person on whom is imposed a requirement to maintain an inventory
of gasoline or special fuel for the purpose of any such program:
Provided,
That fueling facilities used for these purposes are not
capable of fueling motor vehicles and the person in charge of
the program has in his or her possession a letter of authorityfrom the tax commissioner certifying his or her right to such
exemption.
(5) All gallons of gasoline or special fuel imported into
this state in the fuel supply tank or tanks of a motor vehicle,
other than in the fuel supply tank of a vehicle being hauled.
This exemption does not relieve a person owning or operating as
a motor carrier of any taxes imposed by article fourteen-a of
this chapter.
(6) All gallons of gasoline and special fuel used and
consumed in stationary off-highway turbine engines.
(7) All gallons of special fuel for heating any public or
private dwelling, building or other premises.
(8) All gallons of special fuel for boilers.
(9) All gallons of gasoline or special fuel used as a dry
cleaning solvent or commercial or industrial solvent.
(10) All gallons of gasoline or special fuel used as
lubricants, ingredients or components of any manufactured product
or compound.
(11) All gallons of gasoline or special fuel sold to any
municipality or agency thereof for use in vehicles or equipment
owned and operated by such municipality or agency thereof and
when purchased for delivery in bulk quantities of five hundred
gallons or more.
(12) All gallons of gasoline or special fuel sold to any
urban mass transportation authority, created pursuant to the
provisions of article twenty-seven, chapter eight of this code,for use in an urban mass transportation system.
(13) All gallons of gasoline or special fuel sold for use as
aircraft fuel.
(14) All gallons of gasoline or special fuel sold for use or
used as a fuel for commercial watercraft.
(15) All gallons of special fuel sold for use or consumed in
railroad diesel locomotives.
(16) All gallons or equivalent gallons of "alternative
fuel," as defined in section two of this article, for a period of
ten years from the date that this exemption takes effect in the
year one thousand nine hundred ninety-four. In the eleventh year
from the date that this exemption takes effect, all gallons or
equivalent gallons of "alternative fuel" shall be taxed at one
third of the rate imposed by section three of this article. In
the twelfth year from the date that this exemption takes effect,
all gallons or equivalent gallons of "alternative fuel" shall be
taxed at two thirds of the rate imposed by section three of this
article. In the thirteenth year from the date that this
exemption takes effect and thereafter, all gallons or equivalent
gallons of "alternative fuel" shall be taxed at the full rate
imposed by section three of this article: Provided, That any
person who would be liable for the tax imposed by this article
except for this exemption shall make all reports, keep all
records and comply with all other requirements of section seven
of this article in all respects as if the tax imposed by this
article were due.
(17) All gallons or equivalent gallons of "alternative
fuel," as defined in section two of this article, that are sold
to and purchased by any state, county or municipality, or agency
thereof, for use in vehicles or equipment owned by the state,
county or municipality, or agency thereof.
NOTE: The purpose of this bill is to promote the use of
alternative motor vehicle fuels by exempting their use from the
state's gasoline and special fuel excise tax. Alternative fuels
purchased for use in vehicles owned by any state, county,
municipality or agency thereof would be exempt indefinitely from
the tax. A 100% exemption from the tax for other alternative
fuel users would extend for ten years; however, that exemption
would be phased out by thirds over the subsequent three years and
alternative fuels would be fully taxable in the 13th year after
this bill's effective date.
Strike-throughs indicate language that would be stricken
from the present law, and underscoring indicates new language
that would be added.
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