H. B. 2355
(By Delegates Morgan, Craig,
Leach, Sobonya and Howard)
[Introduced February 15, 2005; 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 §11-15-9i, relating
to creating exemptions from the consumers sales and services
tax for sales of tangible personal property, parts, materials,
apparatus and equipment to be directly incorporated into the
initial construction or installation of a qualified amusement
ride that is directly sold or leased to a qualified operator
of a qualified amusement park located in this State; for
leases of qualified amusement rides that are directly leased
to a qualified operator of a qualified amusement park located
in this State; and for sales of qualified amusement ride
design and engineering services that are directly sold to a
qualified operator of a qualified amusement park located in
this State; and 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 §11-15-9i, to read as
ARTICLE 15. CONSUMERS SALES AND SERVICE TAX.
§11-15-9i. Exemptions for sales of tangible personal property and
services for construction of qualified amusement
rides in qualified amusement parks.
(a) The following sales of tangible personal property and
services are exempt from the tax imposed by this article:
(1) Sales of tangible personal property, parts, materials and
equipment to a qualified operator of a qualified amusement park for
initial construction or initial installation of a qualified
amusement ride that are directly incorporated into the qualified
amusement ride: Provided, That sales of parts, materials and
equipment for repair or maintenance of amusement rides and sales of
amusement ride repair or maintenance services are not exempt.
(2) Leases of qualified amusement rides to a qualified
operator of a qualified amusement park: Provided, That sales or
leases of parts, materials and equipment for repair or maintenance
of amusement rides and sales of amusement ride repairs or
maintenance services are not exempt.
(3) Sales of the service of designing and engineering
qualified amusement rides that are provided directly to a qualified
operator of a qualified amusement park located in this State are
exempt from the tax imposed by this article.
(4) Sales of the service of the initial installation or
initial construction of qualified amusement rides that are provided
directly to a qualified operator of a qualified amusement park
located in this State are exempt from the tax imposed by this
article. Purchases of amusement rides, or the components thereof,
or of parts, materials or equipment for the construction, assembly
or installation of an amusement ride shall not be exempt when
purchased by a contractor or installer thereof. Repair and
maintenance of amusement rides is not exempt.
(b) Definitions. -- As used in this article, the following
terms have the following meanings:
(1) "Initial installation" or "initial construction" means the
first installation or first construction of a particular qualified
amusement ride in a qualified amusement park. Initial installation
and initial construction do not include any repair, refurbishment
or maintenance of a preexisting amusement ride or any repair,
refurbishment or maintenance of ancillary or associated equipment
or structures. However, "initial construction" and "initial
installation" do include the complete replacement of an old,
superseded, worn out or disused amusement ride in a qualified
amusement park with a new or replacement qualified amusement ride.
(2) "Qualified amusement park" means a permanent outdoor
facility or park located in this State which, either directly or
through predecessor operators, has been in substantially continuous operation (exclusive of seasonal cessation) as a park, amusement
park, or place of public amusement or public recreation for more
than seventy-five years, that is fenced, walled or enclosed with
access only through controlled entries, that is open for operation
more than ninety days in each calendar year, where amusement rides,
as defined in this section, are available for use by the general
public for a charge upon which the tax imposed by this article is
imposed. Such charge may be for admission to the park or for
amusement rides or for both.
(c) Exclusions. -- The term "qualified amusement park" does
not include any sports arena, state park, ski resort, downhill or
cross country ski slope, trail or run or ski lift or ski tow, or
any carnival, fair, rodeo, circus, outdoor theater or amphitheater,
indoor theater, planetarium, traveling show, or any golf course,
golf driving range, miniature golf course or go cart track, or any
canoeing, kayaking, boating, scuba diving, snorkeling or white
water rafting area, facility or course, or any sports track or
field, indoor or outdoor rock climbing area or facility, mountain
climbing area or facility, hiking trail, area or facility, camping
area or facility, bicycling or mountain biking trail, area, track,
course or facility, bowling alley or facility, paintball gaming
area, horse race track, dog race track, swimming pool, wave pool,
or water park, or any venue for theatrical performances or events,
including, but not limited to, movies, plays, lectures and concerts, any venue for craft, art or antique shows or flea
markets, or any race track, including, but not limited to, tracks
for drag racing, stock car, motorcycle and motocross racing, any
venue for tours and programs at historical sites or manufacturing
sites, any venue for horse, dog or cat shows or pet shows of any
character, or any venue for any industrial, manufacturing or
retailing trade show.
"Qualified amusement ride" means a mechanical device which
carries or conveys passengers along, around or over a fixed or
restricted route or course for the purpose of giving its passengers
amusement, pleasure, thrills or excitement that is erected or
constructed in a single physical location in a qualified amusement
park for a period of more than twelve consecutive months.
(d) Exclusion of temporary and portable units. -- The term
qualified amusement ride does not include carnival rides or fair
rides of a temporary or portable nature which are assembled and
reassembled or rides which are or may be relocated from place to
place. However, a portable amusement ride that is sold or leased
to a qualified operator may constitute a qualified amusement ride
if it is directly sold to a qualified operator or leased to a
qualified operator for a primary lease term of not less than twelve
months and actually installed in a qualified amusement park with
the intent that it remain there for not less than twelve months,
and if it in fact remains there and in use for not less than twelve months.
(e) Other exclusions: The term "qualified amusement ride"
does not mean or include any mechanical device which is coin
operated and does not include any arcade game, canoe, boat, kayak,
motorcycle, go cart, all terrain vehicle, motor vehicle or racing
vehicle, ski run, trail or course, ski lift or tow, tramway or
aerial tramway, funicular, trolley or streetcar, or any horse for
horseback riding or any hay wagon, hayride, tractor pulled wagon,
horse drawn buggy, horse drawn wagon, horse drawn sled or other
horse drawn apparatus or vehicle primarily designed or used for
agricultural operations, or amusement devices of a permanent nature
which are subject to building regulations issued by cities or
counties. The term "qualified amusement ride" does not include
excursion trains, historic railroads or other railroads, rail lines
or rail rides, except that miniature railroads designed to carry
passengers for amusement exclusively within a qualified amusement
park, having a track gauge narrower than standard railroad gauge
and a total track length within a qualified amusement park of less
than two miles, and roller coasters and similar amusement rides
entirely within a qualified amusement park which ride upon narrow
gauge rails and which are traditionally accepted as amusement rides
are not excluded from the definition of "qualified amusement ride"
for purposes of this section.
"Qualified operator" of a qualified amusement park means a person that owns and holds title to a qualified amusement park.
NOTE: The purpose of this bill is to create sales and use tax
exemptions for purchases of design and engineering services and
materials and equipment directly used in construction of new or
replacement amusement rides or for leases of amusement rides to
qualified operators in long established West Virginia amusement
parks having historical character.
This section is new; therefore, strike-throughs and
underscoring have been omitted.