Senate Bill No. 420
(By Senator Bowman)
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[Introduced February 3, 2004; referred to the Committee on
Finance.]
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A BILL to amend and reenact §11-14C-20 of the code of West
Virginia, 1931, as amended, relating to remittance of motor
fuel excise tax where supplier is exporting fuel to another
state.
Be it enacted by the Legislature of West Virginia:
That §11-14C-20 of the code of West Virginia, 1931, as
amended, be amended and reenacted to read as follows:
ARTICLE 14C. MOTOR FUEL EXCISE TAX.
§11-14C-20. Remittance of tax to supplier or permissive supplier.
(a) Each licensed distributor and licensed importer shall
remit to the supplier or permissive supplier, as applicable, of the
motor fuel the tax levied by section five of this article and due
on motor fuel removed at a terminal rack:
Provided, That at the
election of a licensed distributor or licensed importer, the
supplier or permissive supplier shall not require the licensed distributor or licensed importer to pay tax levied by section five
of this article until two days before the date the supplier or
permissive supplier is required to pay the tax to this state:
Provided, however, That an election under this subsection is
subject to the condition that remittances by the licensed
distributor or licensed importer of all tax due to the supplier or
permissive supplier shall be paid by electronic funds transfer two
days before the date of the remittance by the supplier or
permissive supplier to the commissioner. An election under this
subsection may be terminated by the supplier or permissive supplier
if the licensed distributor or licensed importer does not make
timely payments to the supplier or permissive supplier as required
by this subsection.
(b) A licensed exporter shall remit tax due on motor fuel
removed at a terminal rack to the supplier of the motor fuel. The
date by which an exporter shall remit tax is governed by the law of
the destination state of the exported motor fuel:
Provided, That
if the laws of the destination state prohibit the collection of the
destination state's tax,
the supplier may elect to either collect
the tax levied by section five of this article shall be collected
or in lieu thereof, take from the exporter documentation
sufficient to establish: (i) That the motor fuel was immediately
exported to another state and the name of that state; (ii) that
the entire amount of motor fuel exported was reported to the destination state and the tax imposed on the motor fuel by the
destination state was paid by the exporter; (iii) the name and
address of the person to which the motor fuel was sold and the
quantity of motor fuel sold to that person; and (iv) that the
exporter shall pay the tax levied by section five of this article
if the foregoing documentation is not provided: Provided, however,
That until such time as either the tax imposed by this state is
paid, the tax imposed by the destination state is paid or the motor
fuel is sold in a transaction not subject to tax in the destination
state, both the supplier and the exporter shall be jointly liable
for the tax levied by section five of this article.
(c) All tax payments received by a supplier or permissive
supplier shall be held in trust by the supplier or permissive
supplier until the supplier or permissive supplier remits the tax
payment to this state or to another state, and the supplier or
permissive supplier shall constitute the trustee for the tax
payments.
(d) The license of a licensed distributor, exporter or
importer who fails to pay the full amount of tax required by this
article is subject to cancellation.
NOTE: The purpose of this bill is to correct certain problems
relating to the process of collecting the motor fuel excise tax
when a supplier exports fuel to another state.
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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