H. B. 4502
(By Delegates Campbell, Staton, Boggs,
Cann and Canterbury)
[Introduced February 17, 2004; referred to the
Committee on Finance.]
A BILL to amend the code of West Virginia, 1931, as amended, by
adding thereto a new section, designated §11-15-9h, relating
to creating exemptions from the consumers sales and services
tax for sales of computer hardware and software directly
incorporated into manufactured products, sales of electronic
data processing services, sales of computer hardware and
software directly used in communication, sales of certain
educational software to certain educational and nonprofit
institutions, and sales of internet advertising services,
providing definitions.
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 §11-15-9h, to read as
follows:
ARTICLE 15. CONSUMERS SALES AND SERVICE TAX.
§11-15-9h. Exemptions for sales of computer hardware and software
directly incorporated into manufactured products, sales of
electronic data processing service, sales of computer hardware
and software directly used in communication, sales of
educational software and sales of internet advertising.
(a) In order to modernize the exemptions from tax contained in
this article as a result of technological advances in computers and
the expanded role of computers, the internet and global instant
communications in business, and to encourage computer software
developers, computer hardware designers, systems engineering firms,
internet service companies, electronic data processing companies
and other high technology companies to locate and expand their
businesses in West Virginia the following sales of tangible
personal property and software are exempt:
(1) Sales of computer hardware or software (including custom
designed software) to be directly incorporated by a manufacturer
into a manufactured product. For purposes of this subsection the
payment of licensing fees for the right to incorporate hardware or
software developed by persons other than the manufacturer into a
manufactured product are exempt from the tax imposed by this
article;
(2) Sales of computer hardware or software (including custom
designed software) directly used in communication as defined in
this article.
(3) Sales of electronic data processing services;
(4) Sales of educational software required to be used in any
of the public schools of this state or in any institution in this
state which qualifies as a nonprofit or educational institution
subject to administration, regulation, certification or approval of
the West Virginia department of education and the arts, the board
of trustees of the university system of West Virginia or the board
of directors for colleges located in this state; and
(5) Sales of internet advertising of goods and services;
(c) Definitions. As used in this article, the following terms
have the following meanings:
(1) "Computer" means an electronic device with one or more
integrated circuits that performs logic, arithmetic or memory
functions by the manipulation of electronic or magnetic impulses.
The term "computer" does not include computer software.
(2) "Computer hardware" means a computer and the directly and
immediately connected physical equipment involved in the
performance of data processing or communications functions,
including data input, data output, data processing, data storage,
and data communication apparatus that are directly and immediately
connected to the computer. The term "computer hardware" does not
include computer software.
(3) "Computer software" means computer data, a computer
program, or a set of computer programs, procedures, and associated
documentation concerned with the operation and function of a computer system, and includes both systems and application programs
and subdivisions, such as assemblers, compilers, routines, and
utility programs.
NOTE: The purpose of this bill is to create sales tax
exemptions to encourage high technology companies to locate and
expand their businesses in West Virginia and to provide sales
exemptions for educational software and internet advertising.
This section is new; therefore, strike-throughs and
underscoring have been omitted.
Email
Webmaster | © 2024 West Virginia Legislature **
