Senate Bill No. 360
(By Senator Miller)
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[Introduced February 12, 1996;
referred to the Committee on Transportation;
and then to the Committee on Finance.]
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A BILL to amend and reenact sections two and three, article
fourteen, chapter eleven of the code of West Virginia, one
thousand nine hundred thirty-one, as amended, all relating
to taxation; gasoline and special fuel excise tax; and
removing the tax on special dyed diesel fuels used in off-
highway equipment.
Be it enacted by the Legislature of West Virginia:
That sections two and three, article fourteen, chapter
eleven of the code of West Virginia, one thousand nine hundred
thirty-one, as amended, be amended and reenacted, all to read as
follows:
ARTICLE 14. GASOLINE AND SPECIAL FUEL EXCISE TAX.
§11-14-2. Definitions.
For purposes of this article:
(1) "Actual metered gallons" means, in addition to amounts
computed by mechanical devices which measure and record directly
in digital terms, all amounts computed by other methods of
computing quantities commonly employed by persons engaged in the
sale of petroleum products, including, but not limited to, tank
or barge strappings and other graduated lineal devices.
(2) "Aircraft fuel" means gasoline and special fuel suitable
for use in any aircraft engine.
(3) "Commissioner" or "tax commissioner" means the tax
commissioner of the state of West Virginia or his duly authorized
agent.
(4) "Distributor" or "producer" means and includes every
person:
(a) Who produces, manufactures, processes or otherwise
alters gasoline or special fuel in this state for use or for
sale; or
(b) Who engages in this state in the sale of gasoline or
special fuel for the purpose of resale or for distribution; or
(c) Who receives gasoline or special fuel into the cargo
tank of a tank wagon in this state for use or sale by such
person.
(5) "Gallon" means two hundred thirty-one cubic inches of
liquid measurement, by volume: Provided, That the commissioner
may by rule and regulation prescribe other measurement or
definition of gallon.
(6) "Gasoline" means any product commonly or commercially
known as gasoline, regardless of classification, suitable for use
as fuel in an internal combustion engine, except special fuel as
hereinafter defined.
(7) "Highway" means every way or place of whatever nature
open to the use of the public as a matter of right for the
purpose of vehicular travel, which is maintained by this state or
some taxing subdivision or unit thereof or the federal government
or any of its agencies.
(8) "Importer" means every person, resident or nonresident,
other than a distributor, who receives gasoline or special fuel
outside this state for use, sale or consumption within this
state, but shall not include the fuel in the supply tank of a
motor vehicle, or a person paying the motor carrier road tax as
provided for in article fourteen-a of this chapter.
(9) "Motor carrier" means any passenger vehicle which has
seats for more than nine passengers in addition to the driver, or
any road tractor, or any tractor truck or any truck having more than two axles which is operated or caused to be operated by any
person on any highway in this state.
(10) "Motor vehicle" means automobiles, motor carriers,
motor trucks, motorcycles and all other vehicles or equipment,
engines or machines which are operated or propelled by combustion
of gasoline or special fuel.
(11) "Person" means and includes any individual, firm,
partnership, limited partnership, joint adventure, association,
company, corporation, organization, syndicate, receiver, trust or
any other group or combination acting as a unit, in the plural as
well as the singular number, and means and includes the officers,
directors, trustees or members of any firm, partnership, limited
partnership, joint adventure, association, company, corporation,
organization, syndicate, receiver, trust or any other group or
combination acting as a unit, in the plural as well as the
singular number, unless the intention to give a more limited
meaning is disclosed by the context.
(12) "Petroleum carrier" means any person who hauls or
transports gasoline or special fuel within this state or on any
navigable rivers which are within the jurisdiction of this state.
(13) "Purchase" means and includes any acquisition of
ownership of property or of a security interest for a consideration.
(14) "Receive" means any acquisition of ownership or
possession of gasoline or special fuel.
(15) "Retail dealer" means any person not a distributor or
producer who sells gasoline or special fuel from a fixed location
in this state to users.
(16) "Sale" means any transfer, exchange, gift, barter or
other disposition of any property or security interest for a
consideration.
(17) "Special fuel" means any gas or liquid, other than
gasoline, used or suitable for use as fuel in an internal
combustion engine. The term "special fuel" shall include
products commonly known as natural or casinghead gasoline, but
shall not include any petroleum product or chemical compound such
as alcohol, industrial solvent, heavy furnace oil, lubricant,
etc., not commonly used nor practicably suited for use as fuel in
an internal combustion engine.
(18) "Special dyed diesel fuel" means any gas or liquid,
other than gasoline, used or suitable for use as fuel in an
internal combustion engine that is sold for the exclusive use or
consumption in off-highway equipment and is exempt from excise
taxation under federal law.
(18) (19) "Supply tank" means any receptacle on a motor
vehicle from which gasoline or special fuel is supplied for the
propulsion of the vehicle or equipment located thereon, exclusive
of a cargo tank. A supply tank includes a separate compartment
of a cargo tank used as a supply tank, and any auxiliary tank or
receptacle of any kind from which gasoline or special fuel is
supplied for the propulsion of the vehicle, whether or not such
tank or receptacle is directly connected to the fuel supply line
of the vehicle.
(19) (20) "Tank wagon" means and includes any motor vehicle
or vessel with a cargo tank or cargo tanks ordinarily used for
making deliveries of gasoline or special fuel or both for sale or
use.
(20) (21) "Tax" includes, within its meaning, interest,
additions to tax and penalties, unless the intention to give it
a more limited meaning is disclosed by the context.
(21) (22) "Taxpayer" means any person liable for any tax,
interest, additions to tax or penalty under the provisions of
this article.
(22) (23) "User" means any person who purchases gasoline or
special fuel for use as fuel and uses such fuel in an internal
combustion engine owned or operated by such person.
§11-14-3. Imposition of tax.
There is hereby levied an excise tax of fifteen and one-half
cents per gallon on all gasoline or special fuel, which tax shall
be computed in accordance with the appropriate measure of tax as
hereinafter prescribed in this article: Provided, That beginning
the first day of May, one thousand nine hundred ninety-three, the
tax levied by this article shall be twenty and one-half cents per
gallon: Provided, however, That on and after the first day of
August, two thousand one, the tax levied by this article shall be
fifteen and one-half cents per gallon: Provided further, That on
and after the first day of July, one thousand nine hundred
ninety-six, the tax levied by this article shall be removed from
all special dyed diesel fuel.
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(NOTE: This bill removes the excise tax on special dyed
diesel fuel used for off-highway equipment, effective July 1,
1996.
Strike-throughs indicate language that would be stricken
from the present law, and underscoring indicates new language
that would be added.)
TRANSPORTATION COMMITTEE AMENDMENTS
On page ___, after line ___, by striking out the remainder
of the bill, and adding the following:
§11-14-5. Exemptions from tax.
There shall be exempted from the excise tax on gasoline or special fuel imposed by this article the following:
(1) All gallons of gasoline or special fuel exported from
this state to any other state or nation.
(2) All gallons of gasoline or special fuel sold to and
purchased by the United States or any agency thereof when
delivered in bulk quantities of five hundred gallons or more.
(3) All gallons of gasoline or special fuel sold to and
purchased by a county board of education when delivered in bulk
quantities of five hundred gallons or more.
(4) All gallons of gasoline or special fuel sold pursuant to
a government contract, in bulk quantities of five hundred gallons
or more, for use in conjunction with any municipal, county, state
or federal civil defense or emergency service program, or to any
person on whom is imposed a requirement to maintain an inventory
of gasoline or special fuel for the purpose of any such program:
Provided, That fueling facilities used for these purposes are not
capable of fueling motor vehicles and the person in charge of the
program has in his or her possession a letter of authority from
the tax commissioner certifying his or her right to such
exemption.
(5) All gallons of gasoline or special fuel imported into
this state in the fuel supply tank or tanks of a motor vehicle,
other than in the fuel supply tank of a vehicle being hauled.
This exemption does not relieve a person owning or operating as
a motor carrier of any taxes imposed by article fourteen-a of
this chapter.
(6) All gallons of gasoline and special fuel used and
consumed in stationary off-highway turbine engines.
(7) All gallons of special fuel for heating any public or
private dwelling, building or other premises.
(8) All gallons of special fuel for boilers.
(9) All gallons of gasoline or special fuel used as a dry
cleaning solvent or commercial or industrial solvent.
(10) All gallons of gasoline or special fuel used as
lubricants, ingredients or components of any manufactured product
or compound.
(11) All gallons of gasoline or special fuel sold to any
municipality or agency thereof for use in vehicles or equipment
owned and operated by such municipality or agency thereof and
when purchased for delivery in bulk quantities of five hundred
gallons or more.
(12) All gallons of gasoline or special fuel sold to any
urban mass transportation authority, created pursuant to the provisions of article twenty-seven, chapter eight of this code,
for use in an urban mass transportation system.
(13) All gallons of gasoline or special fuel sold for use as
aircraft fuel.
(14) All gallons of gasoline or special fuel sold for use or
used as a fuel for commercial watercraft.
(15) All gallons of special fuel sold for use or consumed in
railroad diesel locomotives.
(16) All gallons of gasoline or special fuel sold to and
purchased by a unit of county government when delivered in bulk
quantities of five hundred gallons or more.
(17) All gallons of special dyed diesel fuel.
On page ___, by striking out the enacting section, and
substituting therefor a new enacting section, to read as follows:
That sections two and five, article fourteen, chapter eleven
of the code of West Virginia, one thousand nine hundred
thirty-one, as amended, be amended and reenacted, all to read as
follows:
And,
On page one, by striking out the title and substituting
therefor a new title, to read as follows:
Senate Bill No. 360-- A Bill to amend and reenact sections
two and five, article fourteen, chapter eleven of the code of
West Virginia, one thousand nine hundred thirty-one, as amended,
all relating to taxation; gasoline and special fuel excise tax;
and removing the tax on special dyed diesel fuels used in off-
highway equipment.