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Introduced Version House Bill 4700 History

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Key: Green = existing Code. Red = new code to be enacted
H. B. 4700


(By Delegate Carmichael)
[Introduced February 22, 2006; referred to the
Committee on Health and Human Resources then Finance.]




A BILL to amend and reenact §11-15-3a of the Code of West Virginia, 1931, as amended; and to amend and reenact §11-17-3 of said code, all relating to eliminating the consumer sales and service tax on food; increasing the cigarette excise tax to one dollar per pack; and increasing the excise tax on noncigarette tobacco products to fifteen percent.

Be it enacted by the Legislature of West Virginia:
That §11-15-3a of the Code of West Virginia, 1931, as amended, be amended and reenacted; and that §11-17-3 of said code be amended and reenacted, all to read as follows:
ARTICLE 15. CONSUMERS SALES AND SERVICE TAX.
§11-15-3a. Rate of tax on food and food ingredients intended for human consumption; reduction of tax beginning January 1, 2006; exceptions; legislative, emergency and other rules.

(a) Rate of tax on food and food ingredients. -- Notwithstanding any provision of this article or article fifteen-a of this chapter to the contrary, the rate of tax on sales, purchases and uses of food and food ingredients intended for human consumption after the thirty-first day of December, two thousand five, shall be five percent of its sales price, as defined in section two, article fifteen-b of this chapter: Provided, That beginning the first day of July, two thousand six, there shall be no tax on sales, purchases and uses of food and food ingredients intended for human consumption.
(b) Calculation of tax on fractional parts of a dollar. -- The tax computation under this section shall be carried to the third decimal place, and the tax rounded up to the next whole cent whenever the third decimal place is greater than four and rounded down to the lower whole cent whenever the third decimal place is four or less. The seller may elect to compute the tax due on a transaction on a per item basis or on an invoice basis provided the method used is consistently used during the reporting period.
(c) Exceptions. -- The reduced rate of tax provided in this section shall not apply to sales, purchases and uses by consumers of "prepared food," as defined in article fifteen-b of this chapter, which shall remain taxable at the general rate of tax specified in section three of this article and section two, article fifteen-a of this chapter.
(d) Federal food stamp and women, infants and children programs, other exemptions. -- Nothing in this section shall affect application of the exemption from tax provided in section nine of this article for food purchased by an eligible person using food stamps, electronic benefits transfer cards or vouchers issued by or pursuant to authorization of the United States Department of Agriculture to individuals participating in the federal food stamp program, by whatever name called, or the Women, Infants, and Children (WIC) Program, or application of any other exemption from tax set forth in this article or article fifteen-a of this chapter.
(e) Legislative rules; emergency rules. -- The Tax Commissioner may promulgate legislative rules and emergency rules explaining and implementing this section, which rules shall be promulgated in accordance with the provisions of article three, chapter twenty-nine-a of this code. The authority to promulgate rules includes authority to amend or repeal those rules. If proposed legislative rules for this section are filed in the State Register before the fifteenth day of December, two thousand five, those rules may be promulgated as emergency legislative rules, as provided in article three, of said chapter twenty-nine-a of this code.
ARTICLE 17. TOBACCO PRODUCTS EXCISE TAX ACT.
§11-17-3. Levy of tax; ratio; dedication of proceeds.
(a) Tax on cigarettes. -- For the purpose of providing revenue for the general revenue fund of the state, an excise tax is hereby levied and imposed on sales of cigarettes at the rate of fifty-five cents on each twenty cigarettes or in like ratio on any part thereof: Provided, That beginning the first day of July, two thousand six, an excise tax is hereby levied and imposed on sales of cigarettes at the rate of one dollar on each twenty cigarettes or in like ratio on any part thereof. Only one sale of the same article shall be used in computing the amount of tax due under this subsection.
(b) Tax on tobacco products other than cigarettes. -- Effective the first day of January, two thousand two, an excise tax is hereby levied and imposed on the sale or use of, other than cigarettes, tobacco products at a rate equal to seven percent of the wholesale price of each article or item of tobacco product other than cigarettes sold by the wholesaler or subjobber dealer, whether or not sold at wholesale, or if not sold, then at the same rate upon the use by the wholesaler or dealer: Provided, That beginning the first day of July, two thousand six, an excise tax is hereby levied and imposed on the sale or use of, other than cigarettes, tobacco products at a rate equal to fifteen percent of the wholesale price of each article or item of tobacco product other than cigarettes sold by the wholesaler or subjobber dealer, whether or not sold at wholesale, or if not sold, then at the same rate upon the use by the wholesaler or dealer. Only one sale of the same article shall be used in computing the amount of tax due under this subsection. Revenues received from this tax shall be deposited into the General Revenue Fund.
(c) Effective date. -- The changes set forth herein to this section and section four of this article shall become effective the first day of May, two thousand three.

NOTE: The purpose of this bill is to eliminate the consumer sales and service tax on food, to increase the cigarette excise tax to one dollar per pack and to increase the excise tax on noncigarette tobacco products to fifteen percent.

Strike-thought indicate language that would be stricken from the present law, and underscoring indicates new language that would be added.
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