H. B. 2202
(By Delegate Walters (By Request))
[Introduced February 24, 1997; referred to the
Committee on Finance.]
A BILL to amend and reenact sections nine and nine-a, article
fifteen, chapter eleven of the code of West Virginia, one
thousand nine hundred thirty-one, as amended; to amend
article sixteen of said chapter by adding thereto a new
section, designated section thirteen-a; to amend and reenact
section three, article seventeen of said chapter; to amend
and reenact section twenty-one, article three-a, chapter
sixty of said code; and to further amend article eight of
said chapter by adding thereto a new section, designated
section eight, all relating to exempting sales of food from
the six percent consumer sales tax; increasing tax on sale
of cigarettes to twenty-seven cents per pack; and providing
for an additional sales tax on the sale of beer, wine and
liquor of thirty-three percent of the purchase price.
Be it enacted by the Legislature of West Virginia:
That sections nine and nine-a, article fifteen, chapter
eleven of the code of West Virginia, one thousand nine hundred
thirty-one, as amended, be amended and reenacted; that article
sixteen of said chapter be amended by adding thereto a new
section, designated section thirteen-a; that section three,
article seventeen of said chapter be amended and reenacted; that
section twenty-one, article three-a, chapter sixty of said code
be amendedand reenacted; and that article eight of said chapter
be amended by adding thereto a new section, designated section
eight, all to read as follows:
ARTICLE 15. CONSUMERS SALES TAX.
§11-15-9. Exemptions.
(a) Exemptions for which exemption certificate may be
issued. -- A person having a right or claim to any exemption set
forth in this subsection may, in lieu of paying the tax imposed
by this article and filing a claim for refund, execute a
certificate of exemption, in such form as the tax commissioner
may require, and deliver it to the vendor of the property or
service, in such the manner as the tax commissioner may require.
However, the tax commissioner may, by rule, specify those
exemptions authorized in this subsection for which exemptions
certificates are not required. The following sales of tangible personal property and/or services are exempt as provided in this
subsection:
(1) Sales of gas, steam and water delivered to consumers
through mains or pipes and sales of electricity;
(2) Sales of textbooks required to be used in any of the
schools of this state or in any institution in this state which
qualifies as a nonprofit or educational institution subject to
the West Virginia department of education and the arts, the board
of trustees of the university system of West Virginia or the
board of directors for colleges located in this state;
(3) Sales of property or services to this state, its
institutions or subdivisions, governmental units, institutions or
subdivisions of other states: Provided, That the law of the
other state provides the same exemption to governmental units or
subdivisions of this state and to the United States, including
agencies of federal, state or local governments for distribution
in public welfare or relief work;
(4) Sales of vehicles which are titled by the division of
motor vehicles and which are subject to the tax imposed by
section four, article three, chapter seventeen-a of this code, or
like tax;
(5) Sales of property or services to churches who make no
charge whatsoever for the services they render: Provided, That the exemption granted in this subdivision applies only to
services, equipment, supplies, food for meals and materials
directly used or consumed by these organizations, and shall may
not apply to purchases of gasoline or special fuel;
(6) Sales of tangible personal property or services to a
corporation or organization which has a current registration
certificate issued under article twelve of this chapter, is
exempt from federal income taxes under Section 501(c)(3) or
(c)(4) of the Internal Revenue Code of 1986, as amended, and is:
(A) A church or a convention or association of churches as
defined in Section 170 of the Internal Revenue Code of 1986, as
amended;
(B) An elementary or secondary school which maintains a
regular faculty and curriculum and has a regularly enrolled body
of pupils or students in attendance at the place in this state
where its educational activities are regularly carried on;
(C) A corporation or organization which annually receives
more than one half of its support from any combination of gifts,
grants, direct or indirect charitable contributions or membership
fees;
(D) An organization which has no paid employees and its
gross income from fund raisers, less reasonable and necessary
expenses incurred to raise the gross income (or the tangible personal property or services purchased with the net income), is
donated to an organization which is exempt from income taxes
under Section 501(c)(3) or (c)(4) of the Internal Revenue Code of
1986, as amended;
(E) A youth organization, such as the girl scouts of the
United States of America, the boy scouts of America or the YMCA
Indian guide/princess program and the local affiliates thereof,
which is organized and operated exclusively for charitable
purposes and has as its primary purpose the nonsectarian
character development and citizenship training of its members;
(F) For purposes of this subsection:
(i) The term "support" includes, but is not limited to:
(I) Gifts, grants, contributions or membership fees;
(II) Gross receipts from fund raisers which include
receipts from admissions, sales of merchandise, performance of
services or furnishing of facilities in any activity which is not
an unrelated trade or business within the meaning of Section 513
of the Internal Revenue Code of 1986, as amended;
(III) Net income from unrelated business activities,
whether or not such activities are carried on regularly as a
trade or business;
(IV) Gross investment income as defined in Section 509(e)
of the Internal Revenue Code of 1986, as amended;
(V) Tax revenues levied for the benefit of a corporation or
organization either paid to or expended on behalf of the
organization; and
(VI) The value of services or facilities (exclusive of
services or facilities generally furnished to the public without
charge) furnished by a governmental unit referred to in Section
170(c)(1) of the Internal Revenue Code of 1986, as amended, to an
organization without charge. This term does not include any gain
from the sale or other disposition of property which would be
considered as gain from the sale or exchange of a capital asset,
or the value of an exemption from any federal, state or local tax
or any similar benefit;
(ii) The term "charitable contribution" means a
contribution or gift to or for the use of a corporation or
organization, described in Section 170(c)(2) of the Internal
Revenue Code of 1986, as amended;
(iii) The term "membership fee" does not include any
amounts paid for tangible personal property or specific services
rendered to members by the corporation or organization; or
(G) The exemption allowed by this subdivision (6) does not
apply to sales of gasoline or special fuel or to sales of
tangible personal property or services to be used or consumed in
the generation of unrelated business income as defined in Section 513 of the Internal Revenue Code of 1986, as amended. The
provisions of this subdivision apply to sales made after the
thirtieth day of June, one thousand nine hundred eighty-nine:
Provided, That the exemption granted in this subdivision applies
only to services, equipment, supplies and materials used or
consumed in the activities for which the organizations qualify as
tax exempt organizations under the Internal Revenue Code and
shall may not apply to purchases of gasoline or special fuel;
(7) An isolated transaction in which any taxable service or
any tangible personal property is sold, transferred, offered for
sale or delivered by the owner of the property or by his or her
representative for the owner's account, the sale, transfer, offer
for sale or delivery not being made in the ordinary course of
repeated and successive transactions of like character by the
owner or on his or her account by the representative: Provided,
That nothing contained in this subdivision may be construed to
prevent an owner who sells, transfers or offers for sale tangible
personal property in an isolated transaction through an
auctioneer from availing himself or herself of the exemption
provided in this subdivision, regardless where the isolated sale
takes place. The tax commissioner may adopt such a legislative
rule pursuant to article three, chapter twenty-nine-a of this
code as he or she considers necessary for the efficient administration of this exemption;
(8) Sales of tangible personal property or of any taxable
services rendered for use or consumption in connection with the
commercial production of an agricultural product the ultimate
sale of which will be subject to the tax imposed by this article
or which would have been subject to tax under this article:
Provided, That sales of tangible personal property and services
to be used or consumed in the construction of or permanent
improvement to real property and sales of gasoline and special
fuel are not exempt: Provided, however, That nails and fencing
shall may not be considered as improvements to real property;
(9) Sales of tangible personal property to a person for the
purpose of resale in the form of tangible personal property:
Provided, That sales of gasoline and special fuel by distributors
and importers is taxable except when the sale is to another
distributor for resale: Provided, however, That sales of
building materials or building supplies or other property to any
person engaging in the activity of contracting, as defined in
this article, which is to be installed in, affixed to or
incorporated by that person or his or her agent into any real
property, building or structure is not exempt under this
subdivision, except that sales of tangible personal property to
a person engaging in the activity of contracting pursuant to a written contract with the United States, this state, or with a
political subdivision of this state, or with a public corporation
created by the Legislature or by another governmental entity
pursuant to an act of the Legislature, for a building or
structure, or improvement thereto, or other improvement to real
property that is or will be owned and used by the governmental
entity for a governmental or proprietary purpose, who
incorporates the property in the building, structure or
improvement shall, with respect to the tangible personal
property, nevertheless be considered to be the vendor of the
property to the governmental entity and any person seeking to
qualify for and assert this exception must do so pursuant to the
legislative rules as the tax commissioner may promulgate and upon
such forms as the tax commissioner may prescribe. A
subcontractor who, pursuant to a written subcontract with a prime
contractor who qualifies for this exception, provides equipment,
or materials, and labor to a prime contractor shall be treated in
the same manner as the prime contractor is treated with respect
to the prime contract under this exception and the legislative
rules promulgated by the tax commissioner: Provided further,
That the exemption for government contractors in the preceding
proviso expires on the first day of October, one thousand nine
hundred ninety, subject to the transition rules set forth in section eight-c of this article;
(10) Sales of newspapers when delivered to consumers by
route carriers;
(11) Sales of drugs dispensed upon prescription and sales
of insulin to consumers for medical purposes;
(12) Sales of radio and television broadcasting time,
preprinted advertising circulars and newspaper and outdoor
advertising space for the advertisement of goods or services;
(13) Sales and services performed by day-care centers;
(14) Casual and occasional sales of property or services
not conducted in a repeated manner or in the ordinary course of
repetitive and successive transactions of like character by a
corporation or organization which is exempt from tax under
subdivision (6) of this subsection on its purchases of tangible
personal property or services:
(A) For purposes of this subdivision, the term "casual and
occasional sales not conducted in a repeated manner or in the
ordinary course of repetitive and successive transactions of like
character" means sales of tangible personal property or services
at fund raisers sponsored by a corporation or organization which
is exempt, under subdivision (6) of this subsection, from payment
of the tax imposed by this article on its purchases, when the
fund raisers are of limited duration and are held no more than six times during any twelve-month period and "limited duration"
means no more than eighty-four consecutive hours;
(B) The provisions of this subdivision apply to sales made
after the thirtieth day of June, one thousand nine hundred
eighty-nine;
(15) Sales of property or services to a school which has
approval from the board of trustees of the university system of
West Virginia or the board of directors of the state college
system to award degrees, which has its principal campus in this
state, and which is exempt from federal and state income taxes
under Section 501(c)(3) of the Internal Revenue Code of 1986, as
amended: Provided, That sales of gasoline and special fuel are
taxable;
(16) Sales of mobile homes to be utilized by purchasers as
their principal year-round residence and dwelling: Provided,
That these mobile homes are subject to tax at the three-percent
rate;
(17) Sales of lottery tickets and materials by licensed
lottery sales agents and lottery retailers authorized by the
state lottery commission, under the provisions of article twenty- two, chapter twenty-nine of this code;
(18) Leases of motor vehicles titled pursuant to the
provisions of article three, chapter seventeen-a of this code to lessees for a period of thirty or more consecutive days. This
exemption applies to leases executed on or after the first day of
July, one thousand nine hundred eighty-seven, and to payments
under long-term leases executed before that date, for months
thereof beginning on or after that date;
(19) Sales of propane to consumers for poultry house
heating purposes, with any seller to the consumer who may have
prior paid the tax in his or her price, to not pass on the same
to the consumer, but to make application and receive refund of
the tax from the tax commissioner, pursuant to rules which shall
be promulgated by the tax commissioner; notwithstanding the
provisions of section eighteen of this article or any other
provision of this article to the contrary;
(20) Any sales of tangible personal property or services
purchased after the thirtieth day of September, one thousand nine
hundred eighty-seven, and lawfully paid for with food stamps
pursuant to the federal food stamp program codified in 7 U.S.C.
§2011 et seq., as amended, or with drafts issued through the West
Virginia special supplement food program for women, infants and
children codified in 42 U. S. C. §1786;
(21) Sales of tickets for activities sponsored by
elementary and secondary schools located within this state;
(22) Sales of electronic data processing services and related software: Provided, That for the purposes of this
subdivision "electronic data processing services" means: (A) The
processing of another's data, including all processes incident to
processing of data such as keypunching, keystroke verification,
rearranging or sorting of previously documented data for the
purpose of data entry or automatic processing and changing the
medium on which data is sorted, whether these processes are done
by the same person or several persons; and (B) providing access
to computer equipment for the purpose of processing data or
examining or acquiring data stored in or accessible to the
computer equipment;
(23) Tuition charged for attending educational summer
camps;
(24) Dispensing of services performed by one corporation,
partnership or limited liability company for another corporation,
partnership or limited liability company when the entities are
members of the same controlled group or are related taxpayers as
defined in Section 267 of the Internal Revenue Code. "Control"
means ownership, directly or indirectly, of stock, equity
interests or membership interests possessing fifty percent or
more of the total combined voting power of all classes of the
stock of a corporation, equity interests of a partnership or
membership interests of a limited liability company entitled to vote or ownership, directly or indirectly, of stock, equity
interests or membership interests possessing fifty percent or
more of the value of the corporation, partnership or limited
liability company;
(25) Food for the following are exempt: Sales of food.
(A) Food purchased or sold by public or private schools,
school sponsored student organizations or school sponsored
parent-teacher associations to students enrolled in such school
or to employees of such school during normal school hours; but
not those sales of food made to the general public;
(B) Food purchased or sold by a public or private college
or university or by a student organization officially recognized
by the college or university to students enrolled at the college
or university when the sales are made on a contract basis so
that a fixed price is paid for consumption of food products for
a specific period of time without respect to the amount of food
product actually consumed by the particular individual
contracting for the sale and no money is paid at the time the
food product is served or consumed;
(C) Food purchased or sold by a charitable or private
nonprofit organization, a nonprofit organization or a
governmental agency under a program to provide food to low-income
persons at or below cost;
(D) Food sold in an occasional sale by a charitable or
nonprofit organization including volunteer fire departments and
rescue squads, if the purpose of the sale is to obtain revenue
for the functions and activities of the organization and the
revenue obtained is actually expended for that purpose;
(E) Food sold by any religious organization at a social or
other gathering conducted by it or under its auspices, if the
purpose in selling the food is to obtain revenue for the
functions and activities of the organization and the revenue
obtained from selling the food is actually used in carrying on
those functions and activities: Provided, That purchases made by
the organizations e are not exempt as a purchase for resale;
(26) Sales of food by little leagues, midget football
leagues, youth football or soccer leagues and similar types of
organizations, including scouting groups and church youth groups,
if the purpose in selling the food is to obtain revenue for the
functions and activities of the organization and the revenues
obtained from selling the food is actually used in supporting or
carrying on functions and activities of the groups: Provided,
That the purchases made by the organizations are not exempt as a
purchase for resale;
(27) (26) Charges for room and meals by fraternities and
sororities to their members: Provided, That the purchases made by a fraternity or sorority are not exempt as a purchase for
resale;
(28) (27) Sales of or charges for the transportation of
passengers in interstate commerce;
(29) (28) Sales of tangible personal property or services
to any person which this state is prohibited from taxing under
the laws of the United States or under the constitution of this
state;
(30) (29) Sales of tangible personal property or services
to any person who claims exemption from the tax imposed by this
article or article fifteen-a of this chapter pursuant to the
provision of any other chapter of this code;
(31) (30) Charges for the services of opening and closing
a burial lot;
(32) (31) Sales of livestock, poultry or other farm
products in their original state by the producer thereof or a
member of the producer's immediate family who is not otherwise
engaged in making retail sales of tangible personal property; and
sales of livestock sold at public sales sponsored by breeders or
registry associations or livestock auction markets: Provided,
That the exemptions allowed by this subdivision apply to sales
made on or after the first day of July, one thousand nine hundred
ninety, and may be claimed without presenting or obtaining exemption certificates: Provided, however, That the farmer shall
maintain adequate records;
(33) (32) Sales of motion picture films to motion picture
exhibitors for exhibition if the sale of tickets or the charge
for admission to the exhibition of the film is subject to the tax
imposed by this article and sales of coin-operated video arcade
machines or video arcade games to a person engaged in the
business of providing the machines to the public for a charge
upon which the tax imposed by this article is remitted to the tax
commissioner: Provided, That the exemption provided in this
subdivision applies to sales made on or after the first day of
July, one thousand nine hundred ninety, and may be claimed by
presenting to the seller a properly executed exemption
certificate;
(34) (33) Sales of aircraft repair, remodeling and
maintenance services when such services are to an aircraft
operated by a certified or licensed carrier of persons or
property, or by a governmental entity, or to an engine or other
component part of an aircraft operated by a certificated or
licensed carrier of persons or property, or by a governmental
entity and sales of tangible personal property that is
permanently affixed or permanently attached as a component part
of an aircraft owned or operated by a certificated or licensed carrier of persons or property, or by a governmental entity, as
part of the repair, remodeling or maintenance service and sales
of machinery, tools or equipment, directly used or consumed
exclusively in the repair, remodeling or maintenance of aircraft,
aircraft engines, or aircraft component parts, for a certificated
or licensed carrier of persons or property, or for a governmental
entity;
(35) (34) Charges for memberships or services provided by
health and fitness organizations relating to personalized fitness
programs;
(36) (35) Sales of services by individuals who baby-sit for
a profit: Provided, That the gross receipts of the individual
from the performance of baby-sitting services do not exceed five
thousand dollars in a taxable year;
(37) (36) Sales of services after the thirtieth day of
June, one thousand nine hundred ninety-seven, by public libraries
or by libraries at academic institutions or by libraries at
institutions of higher learning;
(38) (37) Commissions received after the thirtieth day of
June, one thousand nine hundred ninety-seven, by a manufacturer's
representative;
(39) (38) Sales of primary opinion research services after
the thirtieth day of June, one thousand nine hundred ninety-seven, when:
(A) The services are provided to an out-of-state client;
(B) The results of the service activities, including, but
not limited to, reports, lists of focus group recruits and
compilation of data are transferred to the client across state
lines by mail, wire or other means of interstate commerce, for
use by the client outside the state of West Virginia; and
(C) The transfer of the results of the service activities
is an indispensable part of the overall service.
For the purpose of this subdivision the term "primary
opinion research" means original research in the form of
telephone surveys, mall intercept surveys, focus group research,
direct mail surveys, personal interviews and other data
collection methods commonly utilized for quantitative and
qualitative opinion research studies;
(40) (39) Sales of property or services after the thirtieth
day of June, one thousand nine hundred ninety-seven, to persons
within the state when those sales are for the purposes of the
production of value-added products: Provided, That the exemption
granted in this subdivision applies only to services, equipment,
supplies and materials directly used or consumed by such persons
engaged solely in the production of value-added products:
Provided, however, That this exemption may not be claimed by any one purchaser for more than five consecutive years, except as
otherwise permitted in this section.
For the purpose of this subdivision, the term "value-added
product" means the following products derived from processing a
raw agricultural product, whether for human consumption or for
other use: For purposes of this subdivision, the following
enterprises qualify as processing raw agricultural products into
value-added products: Those engaged in the conversion of:
(A) Lumber into furniture, toys, collectibles and home
furnishings;
(B) Fruits into wine;
(C) Honey into wine;
(D) Wool into fabric;
(E) Raw hides into semifinished or finished leather
products;
(F) Milk into cheese;
(G) Fruits or vegetables into a dried, canned or frozen
product;
(H) Feeder cattle into commonly accepted slaughter weights;
(I) Aquatic animals into a dried, canned, cooked or frozen
product; and
(J) Poultry into a dried, canned, cooked or frozen product;
(41) (40) Sales of music instructional services after the thirtieth day of June, one thousand nine hundred ninety-seven, by
a music teacher; and
(42) (41) After the thirtieth day of June, one thousand
nine hundred ninety-seven, charges to a member by a membership
association or organization which is exempt from paying federal
income taxes under section 501(c)(3) or (c)(6) of the Internal
Revenue Code of 1986, as amended, for membership in the
association or organization, including charges to members for
newsletters prepared by the association or organization for
distribution primarily to its members, charges to members for
continuing education seminars, workshops, conventions, lectures
or courses put on or sponsored by the association or
organization, including charges for related course materials
prepared by the association or organization or by the speaker or
speakers for use during the continuing education seminar,
workshop, convention, lecture or course, but not including any
separate charge or separately stated charge for meals, lodging,
entertainment or transportation taxable under this article:
Provided, That the association or organization pays the tax
imposed by this article on its purchases of meals, lodging,
entertainment or transportation taxable under this article for
which a separate or separately stated charge is not made. A
membership association or organization which is exempt from paying federal income taxes under Section 501(c)(3) or (c)(6) of
the Internal Revenue Code of 1986, as amended, may elect to pay
the tax imposed under this article on the purchases for which a
separate charge or separately stated charge could apply and not
charge its members the tax imposed by this article or, the
association or organization may avail itself of the exemption set
forth in subdivision (9) of this subsection relating to purchases
of tangible personal property for resale and then collect the tax
imposed by this article on those items from its member.
(b) Refundable exemptions. -- Any person having a right or
claim to any exemption set forth in this subsection shall first
pay to the vendor the tax imposed by this article and then apply
to the tax commissioner for a refund or credit, or as provided in
section nine-d of this article, give to the vendor such person's
West Virginia direct pay permit number. The following sales of
tangible personal property and/or services are exempt from tax as
provided in this subsection:
(1) Sales of property or services to bona fide charitable
organizations who make no charge whatsoever for the services they
render: Provided, That the exemption granted in this subdivision
applies only to services, equipment, supplies, food, meals and
materials directly used or consumed by these organizations, and
shall may not apply to purchases of gasoline or special fuel;
(2) Sales of services, machinery, supplies and materials
directly used or consumed in the activities of manufacturing,
transportation, transmission, communication, production of
natural resources, gas storage, generation or production or
selling electric power, provision of a public utility service or
the operation of a utility service or the operation of a utility
business, in the businesses or organizations named above and
shall may not apply to purchases of gasoline or special fuel;
(3) Sales of property or services to nationally chartered
fraternal or social organizations for the sole purpose of free
distribution in public welfare or relief work: Provided, That
sales of gasoline and special fuel are taxable;
(4) Sales and services, fire fighting or station house
equipment, including construction and automotive, made to any
volunteer fire department organized and incorporated under the
laws of the state of West Virginia: Provided, That sales of
gasoline and special fuel are taxable; and
(5) Sales of building materials or building supplies or
other property to an organization qualified under Section
501(c)(3) or (c)(4) of the Internal Revenue Code of 1986, as
amended, which are to be installed in, affixed to or incorporated
by the organization or its agent into real property, or into a
building or structure which is or will be used as permanent low-income housing, transitional housing, emergency homeless shelter,
domestic violence shelter or emergency children and youth shelter
if the shelter is owned, managed, developed or operated by an
organization qualified under Section 501(c)(3) or (c)(4) of the
Internal Revenue Code of 1986, as amended.
§11-15-9A. Exemptions; exceptions for sales of liquors,
wines and nonintoxicating beer to private clubs.
The exemptions provided in this article for sales of
tangible personal property and services rendered for use or
consumption in connection with the conduct of the business of
selling tangible personal property to consumers or dispensing a
service subject to the tax under this article and, for sales of
tangible personal property for the purpose of resale in the form
of tangible personal property, shall may not apply to persons or
organizations licensed under authority of article seven, chapter
sixty of this code, for the purchase of liquor or wines for
resale either from the alcohol beverage control commissioner or
from retail liquor licensees licensed under authority of article
three-a, chapter sixty of this code. Nor may the exemptions apply
to persons or organizations licensed under authority of article
sixteen of this chapter for resale of nonintoxicating beer at any
retail establishment or private club.
ARTICLE 16. NONINTOXICATING BEER.
§11-16-13a. Tax on purchases of beer.
There is hereby levied a tax upon all purchases of
nonintoxicating beer from retail licensees. The tax shall be
thirty-three percent of the purchase price and shall be added to
and collected with the purchase price by the retail licensee. It
shall be in addition to any further sales tax provided for in
this code.
ARTICLE 17. CIGARETTE TAX ACT.
§11-17-3. Levy of tax; ratio.
For the purpose of providing revenue for the general revenue
fund of the state, an excise tax is hereby levied and imposed on
sales of cigarettes at the rate of seventeen twenty-seven cents
on each twenty cigarettes or in like ratio on any part thereof.
Only one sale of the same article shall be used in computing the
amount of tax due hereunder.
ARTICLE 3A. SALES BY RETAIL LIQUOR LICENSEES.
§60-3A-21. Tax on purchases of liquor.
(a) For the purpose of providing financial assistance to and
for the use and benefit of the various counties and
municipalities of this state, there is hereby levied tax upon all
purchases of liquor from retail licensees. The tax shall be five
thirty-eight percent of the purchase price and shall be added to
and collected with the purchase price by the retail licensee.
(b) All such tax collected within the corporate limits of a
municipality in this state shall be remitted to such the
municipality; all such tax collected outside of but within one
mile of the corporate limits of any municipality shall be
remitted to such the municipality; and all other tax so collected
shall be remitted to the county wherein collected: Provided,
That where the corporate limits of more than one municipality be
within one mile of the place of collection of such tax, all such
tax collected shall be divided equally among each of such the
municipalities: Provided, however, That such mile is measured by
the most direct hard surface road or access way usually and
customarily used as ingress and egress to the place of tax
collection.
(c) The tax commissioner, by appropriate rule promulgated
pursuant to chapter twenty-nine-a of this code, shall provide for
the collection of such tax upon all purchases from retail
licensees, separation or proration of the same and distribution
thereof to the respective counties and municipalities for which
the same shall be collected. Such That rule shall provide that
all such taxes shall be deposited with the state treasurer and
distributed quarterly by the state treasurer upon warrants of the
auditor payable to the counties and municipalities.
ARTICLE 8. SALE OF WINES.
§60-8-8. Tax on purchases of Wine.
There is hereby levied a tax upon all purchases of wine
from retail licensees. The tax shall be thirty-three percent of
the purchase price and shall be added to and collected with the
purchase price by the retail licensee. It shall be in addition
to any further sales tax provided for in this code.
NOTE: The purpose of this bill is to exempt the sale of
food from the six percent consumer sales tax. The bill further
provides that the tax on cigarettes is increased to twenty-seven
cents while increasing the tax on liquor, wine and beer by 33% of
the purchase price. The additional tax on beer, wine and liquor
is in addition to the existing consumer sales tax.
Strike-throughs indicate language that would be stricken
from the present law, and underscoring indicates new language
that would be added.
§11-16-13a and §60-8-8 are new; therefore, strike-throughs
and underscoring have been omitted.