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.