H. B. 3243
(By Delegate Duke)
[Introduced January 13, 2010; referred to the
Committee on Finance.]
A BILL to amend and reenact §11-15-3c of the Code of West Virginia,
1931, as amended, relating to the consumer sales and service
tax on motor vehicles.
Be it enacted by the Legislature of West Virginia:
That §11-15-3c of the Code of West Virginia, 1931, as amended,
be amended and reenacted to read as follows:
ARTICLE 15. CONSUMERS SALES AND SERVICE TAX.
§11-15-3c. Imposition of consumer sales tax on motor vehicle
sales; rate of tax; use of motor vehicle purchased
out-of-state; definition of sale; definition of
motor vehicle; exemptions; collection of tax by
Department Division of Motor Vehicles; dedication
of tax to highways; legislative and emergency
rules.
(a) Notwithstanding any
contrary provision of this article or article fifteen-a of this chapter
to the contrary, beginning on
July 1, 2008, all motor vehicle sales to West Virginia residents
shall be subject to the consumer sales tax imposed by this article.
(b)
Rate of tax on motor vehicles. -- Notwithstanding any
contrary provision of this article or article fifteen-a of this
chapter
to the contrary, the rate of tax on the sale and use of a
motor vehicle shall be five percent of its sale price, as defined
in section two, article fifteen-b of this chapter:
Provided, That
so much of the sale price or consideration as is represented by the
exchange of other vehicles on which the tax imposed by this section
or section four, article three, chapter seventeen-a of this code
has been paid by the purchaser shall be deducted from the total
actual sale price paid for the motor vehicle, whether the motor
vehicle be new or used.
(c)
Motor vehicles purchased out-of-state. -- Notwithstanding
this article or article fifteen-a to the contrary, the tax imposed
by this section shall apply to all motor vehicles, used as defined
by section one, article fifteen-a, of this chapter, within this
state, regardless of whether the vehicle was purchased in a state
other than West Virginia.
(d)
Definition of sale. -- Notwithstanding any
contrary
provision of this article or article fifteen-a of this chapter
to
the contrary, for purposes of this section "sale", "sales" or
"selling" means any transfer or lease of the possession or ownership of a motor vehicle for consideration, including isolated
transactions between individuals not being made in the ordinary
course of repeated and successive business and also including
casual and occasional sales between individuals not conducted in a
repeated manner or in the ordinary course of repetitive and
successive transactions.
(e)
Definition of motor vehicle. -- For purposes of this
section "motor vehicle" means every propellable device in, or upon
which any person or property is or may be transported or drawn upon
a highway including, but not limited to: Automobiles; buses; motor
homes; motorcycles; motorboats; all-terrain vehicles; snowmobiles;
low speed vehicles; trucks, truck tractors, and road tractors
having a weight of less than fifty-five thousand pounds; trailers,
semitrailers, full trailers, pole trailers, and converter gear
having a gross weight of less than two thousand pounds; and
motorboat trailers, fold down camping trailers, traveling trailers,
house trailers, and motor homes; except that the term "motor
vehicle" does not include: Modular homes, manufactured homes,
mobile homes, similar nonmotive propelled vehicles susceptible of
being moved upon the highways but primarily designed for habitation
and occupancy; devices operated regularly for the transportation of
persons for compensation under a certificate of convenience and
necessity or contract carrier permit issued by the Public Service
Commission; mobile equipment as defined in section one, article one, chapter seventeen-a of this code; special mobile equipment as
defined in section one, article one, chapter seventeen-a of this
code; trucks, truck tractors, and road tractors having a gross
weight of fifty-five thousand pounds or more; trailers,
semitrailers, full trailers, pole trailers and converter gear,
having weight of two thousand pounds or greater.
Provided, That
Notwithstanding
the provisions of section nine, article fifteen,
chapter eleven of this code, the exemption from tax under this
section for mobile equipment as defined in section one, article
one, chapter seventeen-a of this code; special mobile equipment
defined in section one, article one, chapter seventeen-a of this
code; Class B trucks, truck tractors, and road tractors registered
at a gross weight of fifty-five thousand pounds or more; and Class
C trailers, semitrailers, full trailers, pole trailers and
converter gear, having weight of two thousand pounds or greater;
does not subject the sale or purchase of the vehicle to the
consumer sales and service tax imposed by section three of this
article.
(f)
Exemptions. -- Notwithstanding any other
contrary
provision of this code
to the contrary, the tax imposed by this
section shall not be subject to any exemption in this code other
than the following:
(1) The tax imposed by this section does not apply to any
passenger vehicle offered for rent in the normal course of business by a daily passenger rental car business as licensed under
the
provisions of article six-d of this chapter. For purposes of this
section, a daily passenger car means a motor vehicle having a gross
weight of eight thousand pounds or less and is registered in this
state or any other state. In lieu of the tax imposed by this
section, there is hereby imposed a tax of not less than $1 nor more
than $1.50 for each day or part of the rental period. The
Commissioner of Motor Vehicles shall propose an emergency rule in
accordance with
the provisions of article three, chapter twenty-
nine-a of this code to establish this tax.
(2) The tax imposed by this section does not apply where the
motor vehicle has been acquired by a corporation, partnership or
limited liability company from another corporation, partnership or
limited liability company that is a member of the same controlled
group and the entity transferring the motor vehicle has previously
paid the tax on that motor vehicle imposed by this section. For
the purposes of this section, control means ownership, directly or
indirectly, of stock or equity interests possessing fifty percent
or more of the total combined voting power of all classes of the
stock of a corporation or equity interests of a partnership or
limited liability company entitled to vote or ownership, directly
or indirectly, of stock or equity interests possessing fifty
percent or more of the value of the corporation, partnership or
limited liability company.
(3) The tax imposed by this section does not apply where motor
vehicle has been acquired by a senior citizen service organization
which is exempt from the payment of income taxes under the United
States Internal Revenue Code, Title 26 U.S.C. §501(c)(3) and which
is recognized to be a bona fide senior citizen service organization
by the Bureau of Senior Services existing under
the provisions of
article five, chapter sixteen of this code.
(4) The tax imposed by this section does not apply to any
active duty military personnel stationed outside of West Virginia
who acquires a motor vehicle by sale within nine months from the
date the person returns to this state.
(5) The tax imposed by this section does not apply to motor
vehicles acquired by registered dealers of this state for resale
only.
(6) The tax imposed by this section does not apply to motor
vehicles acquired by this state or any political subdivision
thereof, or by any volunteer fire department or duly chartered
rescue or ambulance squad organized and incorporated under the laws
of this state as a nonprofit corporation for protection of life or
property.
(7) The tax imposed by this section does not apply to motor
vehicles acquired by an urban mass transit authority, as defined in
article twenty-seven, chapter eight of this code, or a nonprofit
entity exempt from federal and state income tax under the Internal Revenue Code, for the purpose of providing mass transportation to
the public at large or designed for the transportation of persons
and being operated for the transportation of persons in the public
interest.
(8) The tax imposed by this section does not apply to the
registration of a vehicle owned and titled in the name of a
resident of this state if the applicant:
(A) Was not a resident of this state at the time the applicant
purchased or otherwise acquired ownership of the vehicle;
(B) Presents evidence as the Commissioner of Motor Vehicles
may require of having titled the vehicle in the applicant's
previous state of residence;
(C) Has relocated to this state and can present such evidence
as the Commissioner of Motor Vehicles may require to show bona fide
residency in this state;
(D) Presents an affidavit, completed by the assessor of the
applicant's county of residence, establishing that the vehicle has
been properly reported and is on record in the office of the
assessor as personal property; and
(E) Makes application to the Division of Motor Vehicles for a
title and registration, and pays all other fees required by chapter
seventeen-a of this code within thirty days of establishing
residency in this state as prescribed in subsection (a), section
one-a of this article.
(9) The tax imposed by this section does not apply to any
motor vehicle made in this state before January 1, 1920. If the
owner of the motor vehicle sells it to an out-of-state resident, he
or she is liable for any tax he or she would have incurred upon
previously purchasing the vehicle, but for this exemption.
(g)
Division of Motor Vehicles to collect.-- Notwithstanding
any
contrary provision of this article, article fifteen-a, and
article ten of this chapter
to the contrary, the Division of Motor
Vehicles shall collect the tax imposed by this section.
Provided,
That If such tax is imposed upon the monthly payments for the lease
of any motor vehicle leased by a resident of West Virginia, which
tax is equal to five percent of the amount of the monthly payment,
applied to each payment, and continuing for the entire term of the
initial lease period. The tax shall be remitted to the Division of
Motor Vehicles on a monthly basis by the lessor of the vehicle.
(h)
Dedication of tax to highways. -- Notwithstanding any
contrary provision of this article or article fifteen-a of this
chapter
to the contrary, all taxes collected pursuant to this
section, after deducting the amount of any refunds lawfully paid,
shall be deposited in the State Road Fund in the State Treasury,
and expended by the Commissioner of Highways for design,
maintenance and construction of roads in the state highway system.
(i)
Legislative rules; emergency rules. -- Notwithstanding any
contrary provision of this article, article fifteen-a, and article ten
to the contrary, the Commissioner of Motor Vehicles shall
promulgate legislative 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 and
should include a minimum taxable value and set forth instances when
a vehicle is to be taxed at fair market value rather than its
purchase price. 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 June
15, 2008, those rules may be promulgated as emergency legislative
rules, as provided in article three of said chapter.
NOTE: The purpose of this bill is to add language to West
Virginia Code §11-15-3c to provide an exemption for this tax on
West Virginia made automobiles which are over ninety years old.
Strike-throughs indicate language that would be stricken from
the present law, and underscoring indicates new language that would
be added.