H. B. 4607
(By Delegate White)
[Introduced February 18, 2008; referred to the
Committee on Finance.]
A BILL to amend and reenact §7-22-12 of the Code of West Virginia,
1931, as amended; to amend and reenact §8-13B-11 of said code;
and to amend and reenact §8-38-12 of said code, all relating
to special district excise tax authorization; the rates of
such tax; and the electronic filing of returns and electronic
payment of such tax, at the discretion of the Tax
Commissioner, and the sharing of tax information and
confidentiality of such information.
Be it enacted by the Legislature of West Virginia:
That §7-22-12 of the Code of West Virginia, 1931, as amended,
be amended and reenacted; that §8-13B-11 of said code be amended
and reenacted; and that §8-38-12 of said code be amended and
reenacted, all to read as follows:
CHAPTER 7. COUNTY COMMISSIONS AND OFFICERS.
ARTICLE 22. COUNTY ECONOMIC OPPORTUNITY DEVELOPMENT DISTRICTS.
§7-22-12. Special district excise tax authorized.
(a)
General. -- The county commission of a county, authorized
by the Legislature to levy a special district excise tax for the
benefit of an economic opportunity development district, may, by
order entered of record, impose that tax on the privilege of
selling tangible personal property and rendering select services in
the district in accordance with this section.
(b)
Tax base. -- The base of a special district excise tax
imposed pursuant to this section shall be identical to the base of
the consumers sales and service tax imposed pursuant to article
fifteen, chapter eleven of this code on sales made and services
rendered within the boundaries of the district.
Provided, That
Sales of gasoline and special fuel are not subject to the tax
levied by article fifteen, chapter eleven of this code. Except for
the exemption provided in section nine-f of said article, all
exemptions and exceptions from the consumers sales and service tax
shall also apply to the special district excise tax.
and sales of
gasoline and special fuel shall not be subject to special district
excise tax but shall remain subject to the tax levied by said
article.
(c)
Tax rate. -- The rate
or rates of a special district
excise tax levied pursuant to this section shall
be stated in an
order entered of record by the county commission and equal to the
general rate of tax on each dollar of gross proceeds from sales of tangible personal property and services subject to the tax levied
by section three, article fifteen, chapter eleven of this code.
The tax on fractional parts of a dollar shall be levied and
collected in conformity with the provision of said section. be
identical to the rate or rates of the consumer sales and service
tax imposed pursuant to article fifteen, chapter eleven of this
code on sales made and services rendered within the boundaries of
the district authorized by this section.
(d)
Collection by Tax Commissioner. -- The order of the county
commission imposing a special district excise tax shall provide for
the tax to be collected by the Tax Commissioner in the same manner
as the tax levied by section three, article fifteen, chapter eleven
of this code is administered, assessed, collected and enforced.
(1) The State Tax Commissioner may require the electronic
filing of returns related to the special district excise tax
imposed pursuant to this section, and also may require the
electronic payment of the special district excise tax imposed
pursuant to this section. The State Tax Commissioner may prescribe
by rules promulgated pursuant to article three, chapter
twenty-nine-a of this code, administrative notices, and forms and
instructions, the procedures and criteria to be followed to
electronically file such returns and to electronically pay the
special district excise tax imposed pursuant to this section.
(2) Any rules filed by the State Tax Commissioner relating to the special district excise tax imposed pursuant to this section
shall set forth the following:
(A) Acceptable indicia of timely payment;
(B) Which type of electronic filing method or methods a
particular type of taxpayer may or may not use;
(C) What type of electronic payment method or methods a
particular type of taxpayer may or may not use;
(D) What, if any, exceptions are allowable, and alternative
methods of payment that may be used for any exceptions;
(E) Procedures for making voluntary or mandatory electronic
payments or both;
(F) Any other provisions necessary to ensure the timely
electronic filing of returns related to the special district excise
tax and the making of payments electronically of the special
district excise tax imposed pursuant to this section.
(3) (A) Notwithstanding the provisions of section five-d,
article ten, chapter eleven of this code: (i) So long as bonds are
outstanding pursuant to this article, the Tax Commissioner shall
provide on a monthly basis to the trustee for bonds issued pursuant
to this article information on returns submitted pursuant to this
article; and (ii) the trustee may share the information so obtained
with the county commission that established the economic
opportunity development district that issued the bonds pursuant to
this article and with the bondholders and with bond counsel for bonds issued pursuant to this article. The Tax Commissioner and
the trustee may enter into a written agreement in order to
accomplish such exchange of information.
(B) Any confidential information provided pursuant to this
subdivision shall be used solely for the protection and enforcement
of the rights and remedies of the bondholders of bonds issued
pursuant to this article. Any person or entity that is in
possession of information disclosed by the Tax Commissioner or
shared by the trustee pursuant to subdivision (a) of this
subsection is subject to the provisions of section five-d, article
ten, chapter eleven of this code as if such person or entity that
is in possession of such tax information is an officer, employee,
agent or representative of this state or of a local or municipal
governmental entity or other governmental subdivision.
(e)
Deposit of net tax collected. --
(1) The order of the county commission imposing a special
district excise tax shall provide that the Tax Commissioner deposit
the net amount of tax collected in the Special Economic Opportunity
Development District Fund to the credit of the county commission's
subaccount therein for the economic opportunity development
district and that the money in the subaccount may only be used to
pay for development expenditures as provided in this article except
as provided in subsection (f) of this section.
(2) The State Treasurer shall withhold from the county commission's subaccount in the Economic Opportunity Development
District Fund and shall deposit in the General Revenue Fund of this
state, on or before the twentieth day of each calendar month next
following the effective date of a special district excise tax, a
sum equal to one twelfth of the base tax revenue amount last
certified by the development office pursuant to section seven of
this article.
(f)
Effective date of special district excise tax. -- Any
taxes imposed pursuant to the authority of this section shall be
effective on the first day of the calendar month that begins sixty
days after the date of adoption of an order entered of record
imposing the tax or the first day of any later calendar month
expressly designated in the order.
(g)
Copies of order. -- Upon entry of an order levying a
special district excise tax, a certified copy of the order shall be
mailed to the State Auditor, as ex officio the chief inspector and
supervisor of public offices, the State Treasurer and the Tax
Commissioner.
CHAPTER 8. MUNICIPAL CORPORATIONS.
ARTICLE 13B. DOWNTOWN REDEVELOPMENT DISTRICTS.
§8-13B-11. Special district excise tax authorized.
(a) The governing body of a municipality, authorized by the
Legislature to establish a downtown redevelopment district, may, by
ordinance, impose a special district excise tax on the privilege of selling tangible personal property and rendering selected services
in the district in accordance with this section.
(b) The base of a special district excise tax imposed pursuant
to this section shall be identical to the base of the consumers
sales and service tax imposed pursuant to article fifteen, chapter
eleven of this code on sales made and services rendered within the
boundaries of the district.
Provided, That,
Sales of gasoline and
special fuel are not subject to special district excise tax but
remain subject to the tax levied by article fifteen, chapter eleven
of this code.
Except for the exemption provided in section nine-f
of article fifteen, chapter eleven of this code, all exemptions and
exceptions from the consumers sales and service tax shall also
apply to the special district excise tax.
(c) The rate or rates of a special district excise tax imposed
pursuant to this section shall be provided in an ordinance adopted
by the governing body of the municipality and shall be six cents on
the dollar of sales and services subject to the tax. are identical
to the rate or rates of the consumers sales and service tax imposed
pursuant to article fifteen, chapter eleven of this code on sales
made and services rendered within the boundaries of the district
authorized by this section.
(d) The ordinance of a municipality imposing a special
district excise tax shall provide procedures for the
administration, assessment, collection and enforcement of the tax in conformity with similar provisions and requirements set forth in
articles ten and fifteen, chapter eleven of this code, and to those
procedures in article ten, chapter eleven of this code, and shall
conform with such provisions as they relate to waiver of penalties
and additions to tax. Provided, That The governing body of the
municipality shall, in any such ordinance, also provide that the
State Tax Commissioner shall administer, assess, collect and
enforce a special district excise tax on behalf of and as the agent
for the municipality as provided in section eleven-a, article ten,
chapter eleven of this code.
(e) The ordinance of a municipality imposing a special
district excise tax shall provide that the Tax Commissioner shall
deposit the net amount of tax collected in the Special Downtown
Redevelopment District Fund to the credit of the municipality's
sub-account therein, and may only be used to pay for development
expenditures provided under this article. Provided, That The State
Treasurer shall withhold from the municipality's sub-account in the
Downtown Redevelopment District Fund, and shall deposit in the
General Revenue Fund of this state, on or before the fifteenth day
of each calendar month next following the effective date of a
special district excise tax, a sum equal to one-twelfth of the base
tax revenue amount last certified by the council pursuant to
section seven of this article.
(f) The State Tax Commissioner may require the electronic filing of returns related to the special district excise tax
imposed pursuant to this section, and may also require the
electronic payment of the special district excise tax imposed
pursuant to this section. The State Tax Commissioner may prescribe
by rules promulgated pursuant to article three, chapter
twenty-nine-a of this code, administrative notices, and forms and
instructions, the procedures and criteria to be followed to
electronically file such returns and to electronically pay the
special district excise tax imposed pursuant to this section.
(g) Any rules filed by the State Tax Commissioner relating to
the special district excise tax imposed pursuant to this section
shall set forth the following:
(1) Acceptable indicia of timely payment;
(2) Which type of electronic filing method or methods a
particular type of taxpayer may or may not use;
(3) What type of electronic payment method or methods a
particular type of taxpayer may or may not use;
(4) What, if any, exceptions are allowable, and alternative
methods of payment that may be used for any exceptions;
(5) Procedures for making voluntary or mandatory electronic
payments or both;
(6) Any other provisions necessary to ensure the timely
electronic filing of returns related to the special district excise
tax and the making of payments electronically of the special district excise tax imposed pursuant to this section.
(h) (1) Notwithstanding the provisions of section five-d of
article ten of chapter eleven of this code: (A) So long as bonds
are outstanding pursuant to this article, the Tax Commissioner
shall provide on a monthly basis to the trustee for bonds issued
pursuant to this article information on returns submitted pursuant
to this article; and (B) the trustee may share the information so
obtained with the county commission that established the economic
opportunity development district that issued the bonds pursuant to
this article and with the bondholders and with bond counsel for
bonds issued pursuant to this article. The Tax Commissioner and
the trustee may enter into a written agreement in order to
accomplish such exchange of information.
(2) Any confidential information provided pursuant to this
subdivision shall be used solely for the protection and enforcement
of the rights and remedies of the bondholders of bonds issued
pursuant to this article. Any person or entity that is in
possession of information disclosed by the Tax Commissioner or
shared by the trustee pursuant to subdivision (1) of this
subsection is subject to the provisions of section five-d, article
ten, chapter eleven of this code as if such person or entity that
is in possession of such tax information is an officer, employee,
agent or representative of this state or of a local or municipal
governmental entity or other governmental subdivision.
(f)(i) Any taxes imposed pursuant to the authority of this
section shall be effective on the first day of the calendar month
that begins on or after the date of adoption of an ordinance
imposing such tax, or at such later date expressly designated in
the ordinance that begins on the first day of a calendar month.
ARTICLE 38. MUNICIPAL ECONOMIC OPPORTUNITY DEVELOPMENT DISTRICTS.
§8-38-12. Special district excise tax authorized.
(a) General. -- The council of a municipality, authorized by
the Legislature to levy a special district excise tax for the
benefit of an economic opportunity development district, may, by
ordinance, impose that tax on the privilege of selling tangible
personal property and rendering select services in the district in
accordance with this section.
(b) Tax base. -- The base of a special district excise tax
imposed pursuant to this section shall be identical to the base of
the consumers sales and service tax imposed pursuant to article
fifteen, chapter eleven of this code on sales made and services
rendered within the boundaries of the district. Provided, That
Sales of gasoline and special fuel are not subject to special
district excise tax but remain subject to the tax levied by article
fifteen, chapter eleven of this code. Except for the exemption
provided in section nine-f of said article fifteen, chapter eleven
of this code, all exemptions and exceptions from the consumers
sales and service tax shall also apply to the special district excise tax. and sales of gasoline and special fuel shall not be
subject to special district excise tax but shall remain subject to
the tax levied by said article.
(c) Tax rate. -- The rate or rates of a special district
excise tax levied pursuant to this section shall be stated in an
ordinance enacted by the municipality and equal identical to the
general rate or rates of the consumers sales and service tax
imposed pursuant to article fifteen, chapter eleven of this code on
each dollar of gross proceeds from sales of tangible personal
property and services subject to the tax levied by section three,
article fifteen, chapter eleven of this code. The tax on
fractional parts of a dollar shall be levied and collected in
conformity with the provision of said section. rendered within the
boundaries of the district authorized by this section.
(d) Collection by Tax Commissioner. -- The ordinance of the
municipality imposing a special district excise tax shall provide
for the tax to be collected by the Tax Commissioner in the same
manner as the tax levied by section three, article fifteen, chapter
eleven of this code is administered, assessed, collected and
enforced.
(1) The State Tax Commissioner may require the electronic
filing of returns related to the special district excise tax
imposed pursuant to this section, and may require the electronic
payment of the special district excise tax imposed pursuant to this section. The State Tax Commissioner may prescribe by rules
promulgated pursuant to article three, chapter twenty-nine-a of
this code, administrative notices, and forms and instructions, the
procedures and criteria to be followed to electronically file such
returns and to electronically pay the special district excise tax
imposed pursuant to this section.
(2) Any rules filed by the State Tax Commissioner relating to
the special district excise tax imposed pursuant to this section
shall set forth the following:
(A) Acceptable indicia of timely payment;
(B) Which type of electronic filing method or methods a
particular type of taxpayer may or may not use;
(C) What type of electronic payment method or methods a
particular type of taxpayer may or may not use;
(D) What, if any, exceptions are allowable, and alternative
methods of payment that may be used for any exceptions;
(E) Procedures for making voluntary or mandatory electronic
payments or both;
(F) Any other provisions necessary to ensure the timely
electronic filing of returns related to the special district excise
tax and the making of payments electronically of the special
district excise tax imposed pursuant to this section.
(3) (A) Notwithstanding the provisions of section five-d,
article ten, chapter eleven of this code: (i) So long as bonds are outstanding pursuant to this article, the Tax Commissioner shall
provide on a monthly basis to the trustee for bonds issued pursuant
to this article information on returns submitted pursuant to this
article; and (ii) the trustee may share the information so obtained
with the county commission that established the economic
opportunity development district that issued the bonds pursuant to
this article and with the bondholders and with bond counsel for
bonds issued pursuant to this article. The Tax Commissioner and
the trustee may enter into a written agreement in order to
accomplish such exchange of information.
(B) Any confidential information provided pursuant to this
subdivision shall be used solely for the protection and enforcement
of the rights and remedies of the bondholders of bonds issued
pursuant to this article. Any person or entity that is in
possession of information disclosed by the Tax Commissioner or
shared by the trustee pursuant to subdivision (a) of this
subsection is subject to the provisions of section five-d, article
ten, chapter eleven of this code as if such person or entity that
is in possession of such tax information is an officer, employee,
agent or representative of this state or of a local or municipal
governmental entity or other governmental subdivision.
(e) Deposit of net tax collected. --
(1) The ordinance of the municipality imposing a special
district excise tax shall provide that the Tax Commissioner deposit the net amount of tax collected in the Special Economic Opportunity
Development District Fund to the credit of the municipality's
subaccount therein for the economic opportunity development
district and that the money in the subaccount may only be used to
pay for development expenditures as provided in this article except
as provided in subsection (f) of this section.
(2) The State Treasurer shall withhold from the municipality's
subaccount in the Economic Opportunity Development District Fund
and shall deposit in the General Revenue Fund of this state, on or
before the twentieth day of each calendar month next following the
effective date of a special district excise tax, a sum equal to one
twelfth of the base tax revenue amount last certified by the
development office pursuant to section seven of this article.
(f) Effective date of special district excise tax. -- Any
taxes imposed pursuant to the authority of this section shall be
effective on the first day of the calendar month that begins at
least sixty days after the date of enactment of the ordinance
imposing the tax or at any later date expressly designated in the
ordinance that begins on the first day of a calendar month.
(g) Copies of ordinance. -- Upon enactment of an ordinance
levying a special district excise tax, a certified copy of the
ordinance shall be mailed to the State Auditor, as ex officio the
chief inspector and supervisor of public offices, the State
Treasurer and the Tax Commissioner.
NOTE: The purpose of this bill is to prescribe the base and
rate of tax for purposes of the special district excise taxes
imposed pursuant to the authorizing code sections, and to grant the
State Tax Commissioner discretion to require electronic filing of
returns and prescribe rules relating to the electronic filing of
returns related to such taxes, and to require the electronic
payment of such taxes and prescribe rules relating to payment of
such taxes, and prescribing what such rules shall contain, and to
authorize sharing of tax information with bond trustees and
authorize secondary sharing of such information with the bond
issuers, bondholders and bond counsel and to make such trustees,
bondholders and bond counsel subject to the confidentiality
requirements for tax information set forth in West Virginia Code.
Strike-throughs indicate language that would be stricken from
the present law, and underscoring indicates new language that would
be added.