Senate Bill No. 123
(By Senator Bailey)
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[Introduced January 27, 1994; referred to the Committee
on Finance.]
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A BILL to amend article thirteen, chapter eleven of the code of
West Virginia, one thousand nine hundred thirty-one, as
amended, by adding thereto a new section, designated section
two-o, relating to the creation and imposition of a business
and occupation tax on the privilege of engaging in the
business of advertising for profit; and the dedication of
the proceeds from the tax to the school building authority.
Be it enacted by the Legislature of West Virginia:
That article thirteen, chapter eleven of the code of West
Virginia, one thousand nine hundred thirty-one, as amended, be
amended by adding thereto a new section, designated section two-
o, to read as follows:
ARTICLE 13. BUSINESS AND OCCUPATION TAX.
§11-13-2o Business of advertising.
(a) Rate of tax -- Upon every person engaging in the
business of advertising in this state there shall be a tax on the
gross proceeds gained therefrom equal to five percent of such
proceeds.
(b) Application of tax. -- This tax shall be applicable toany business which, in whole or part, for hire provides as a
service to any person or persons, associations or organizations
whether charitable, political or otherwise, businesses,
governments or governmental agencies, or subdivisions thereof, or
to any other private or public concern, any advice, opinion,
writing, sketch, drawing, picture, photograph, draft or other
process or medium of any type, or any other service or act
intended for the promotion of or publication or advertisement for
any such person or persons, association, organization, business,
government or governmental agency or subdivision thereof, or to
any other private or public concern.
(c) Administration; installment payments. -- The tax due
under this section shall be administered, collected and enforced
as provided in this article and articles nine and ten of this
chapter. The tax due under this section shall be remitted in
periodic installments as provided in section four of this
article.
(d) Dedication of proceeds. -- All revenues received from
this tax shall be dedicated to the school building authority to
be used exclusively to pay off indebtedness incurred in the
issuance of bonds.
NOTE: The purpose of this bill is to create and impose a
business and occupation tax of five percent on all businesses who
provide, in whole or in part, an advertising service to other
public or private concerns. The bill also dedicates the proceeds
to the school building authority to pay off bonds.
This section is new; therefore, strike-throughs andunderscoring have been omitted.