Senate Bill No. 169
(By Senator Hunter)
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[Introduced January 20, 1999;
referred to the Committee on Finance.]
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A BILL to amend chapter eleven of the code of West Virginia, one
thousand nine hundred thirty-one, as amended, by adding
thereto a new article, designated article thirteen-p,
relating to authorizing county commissions to impose a
recreation and amusement tax on ski resorts; tax subject to
approval by voters; legislative findings; amount of tax;
calculation of tax; taxable events, fees, services and
sales; accounting and reporting by vendor; exempted fees,
services and sales; collection and recordkeeping by county
sheriffs; and dedication of funds.
Be it enacted by the Legislature of West Virginia:
That chapter eleven of the code of West Virginia, one
thousand nine hundred thirty-one, as amended, be amended by
adding thereto a new article, designated article thirteen-p, to
read as follows:
ARTICLE 13P. RECREATION AND AMUSEMENT TAX.
§11-13P-1. Legislative findings.
The Legislature finds that the influx of visiting skiers to
the state has caused an undue burden on emergency services for
those counties wherein ski resorts are located. Providing
emergency services to these visitors to our state without
additional compensation to cover costs and salaries places
financial strain on emergency service providers and on the
citizen taxpayers of each county affected.
Therefore, the Legislature finds that county commissions
should be granted the authority, with the approval of the
majority of the voters of the county, to impose a recreation and
amusement tax on any skiing resort located in the county that
attracts tourists to our state. This will alleviate some of the
burden which the counties and their emergency services are
experiencing. In addition, collection of a tax on recreation and
amusement at ski resorts would generate moneys from the very
persons who would most benefit should an emergency situation arise during their visit to our state.
§11-13P-2. Recreation and amusement tax on ski resorts
authorized; imposition by county commission; ratification by majority of county voters.
Beginning on the first day of July, one thousand nine
hundred ninety-nine, a county commission may provide by ordinance
for the imposition of a recreation and amusement tax on any ski
resort located in the county: Provided, That the ordinance may
not become effective until it is ratified by a majority of the
legal votes cast thereon by the qualified voters of the county at
any primary, general or special election as the county commission
directs. Voting thereon may not take place until after notice of
the ordinance imposing the tax and the purpose of the tax,
including the rate of the tax, the items or services to be taxed,
the expected amount of funds to be collected and the dedication
of the funds collected, has been published as a Class II legal
advertisement in compliance with the provisions of article three,
chapter fifty-nine of this code, and the publication area for the
publication is the county in which the tax will be imposed.
§11-13P-3. Rate of tax; computation of tax.
(a) The tax rate may not exceed three cents on the dollar of sales, services or fees.
(b) There is no tax on sales, services or fees where the
monetary consideration is five cents or less.
(c) On a tax of one cent on the dollar, the amount of tax is
computed as follows:
(1) On each sale, service or fee where the monetary
consideration is from six cents to one dollar, both inclusive,
one cent.
(2) If the sale price is in excess of one dollar, one cent
on each whole dollar of the sale price, and upon any fractional
part of the dollar in excess of whole dollars as follows: one
cent on the fractional part of the dollar if in excess of
fifty-one cents.
(d) On a tax of two cents on the dollar, the amount of tax
is computed as follows:
(1) On each sale, service or fee where the monetary
consideration is from six cents to fifty cents, both inclusive,
one cent.
(2) On each sale, service or fee where the monetary
consideration is from fifty-one cents to one dollar, two cents.
(3) If the sale price is in excess of one dollar, two cents on each whole dollar of the sale price, and upon any fractional
part of the dollar in excess of whole dollars as follows: One
cent on the fractional part of the dollar if less than fifty-one
cents; two cents on the fractional part of the dollar if in
excess of fifty cents.
(e) On a tax of three cents on the dollar, the amount of tax
is computed as follows:
(1) On each sale, service or fee where the monetary
consideration is from six cents to thirty-three cents, both
inclusive, one cent.
(2) On each sale, service or fee where the monetary
consideration is from thirty-four cents to sixty-seven cents, two
cents.
(3) On each sale, service or fee where the monetary
consideration is from sixty-seven cents to one dollar, three
cents.
(4) If the sale price is in excess of one dollar, three
cents on each whole dollar of the sale price, and upon any
fractional part of the dollar in excess of whole dollars as
follows: One cent on the fractional part of the dollar if less
than thirty-three cents; two cents on the fractional part of the dollar if in excess of thirty-two cents but less than sixty-seven
cents; and three cents on the fractional part of the dollar if in
excess of sixty-six cents.
§11-13P-4. Taxable items.
(a) Any tax imposed under this article may be collected on
the following sales, services or fees, except as provided in
section five of this article:
(1) Admission fees at ski resorts.
(2) Sales of alcoholic beverages at ski resorts, as defined
in section five, article one, chapter sixty of this code.
(3) Sales of tobacco products at ski resorts, as defined in
section two, article seventeen, chapter eleven of this code.
(4) Sales at ski resorts of skiing equipment, including, but
not limited to, ski apparel and accessories.
(5) Rentals at ski shops of skiing equipment, including, but
not limited to, skis, poles, boots and bindings.
(6) Skiing-related services, including but not limited to,
ski lift tickets and skiing instruction.
(7) Sales of souvenirs, art and craft items at ski resorts;
including those items locally produced and those items imported.
(8) Sales of food prepared for human consumption, sold at restaurants, delicatessens, fast food establishments within ski
resorts.
For purposes of this section, the term "apparel" includes
wearable items unique to a skiing, such as ski boots and ski bib
overalls but does not include clothing which could be used in
other pursuits, such as pants, outer jackets or coats, vests,
socks, underwear or clothing which could be designated work
clothing such as steel-tipped safety boots.
§11-13P-5. Exemptions.
The following sales, services or fees are exempt from tax
imposed pursuant to this article:
(a) Rental of lodging, including hotel and motel rooms,
cabins, lodges and condominiums;
(b) Medical or dental services;
(c) Sale of groceries and household items;
(d) Sale of clothing, except as provided in section four of
this article;
(e) Sale of gasoline or diesel fuel;
(f) Sale of motor oil;
(g) Sale or service of utilities, including, but not limited
to, electric, telephone, home heating fuel, gas, water, sewer and garbage collection;
(h) Sale of prescription or over-the-counter drugs; and,
(i) Motor vehicle services, including repairs and
maintenance.
§11-13P-6. Purchaser to pay; accounting by vendor.
As used in this article, the term "vendor" has the meaning
ascribed to it in section two, article fifteen of this chapter.
The purchaser shall pay to the vendor the amount of tax
levied by this article which shall be added to and constitute a
part of the sales price, and shall be collectible as such by the
vendor who shall account to the county sheriff for all tax paid
by the purchaser. The vendor shall keep the amount of tax paid
separate from the proceeds of sale exclusive of the tax unless
authorized in writing by the county commission or the county
sheriff as authorized by the county commission to keep the amount
of tax in a different manner. Where such authorization is given,
the county's claim is enforceable against and shall take
precedence over all other claims against the moneys commingled.
§11-13P-7. Failure to collect tax; liability of vendor.
If any vendor fails to collect the tax imposed by a county
commission pursuant to this article, he or she is personally liable for the amount he or she failed to collect.
§11-13P-8. Total amount collected is to be remitted.
No profit shall accrue to any person as a result of the
collection of the tax levied pursuant to this article and the
total of all taxes collected pursuant to this article shall be
returned and remitted to the sheriff of the county as hereinafter
provided.
§11-13P-9. When separate records of sales required.
Any vendor engaged in a skiing-related business subject to
this tax, who is at the same time engaged in some other kind of
business, occupation or profession, not taxable under this
article, shall keep records to show separately the transactions
used in determining the tax base herein taxed. In the event such
person fails to keep separate records there may be levied upon
him or her a tax based upon the entire gross proceeds of both or
all of his or her businesses.
§11-13P-10. Tax returns and payments.
(a) Each county commission may prescribe the form to be used
to report the tax collected pursuant to this article. The county
commission shall require that any taxes levied by this article
shall be due and payable in monthly installments, on or before the fifteenth day of the month next succeeding the month in which
the tax accrued. The taxpayer shall, on or before the fifteenth
day of each month, make out and mail to the sheriff of the county
assessing the tax a return, in the form prescribed by the county
commission, showing: (1) The total gross proceeds of his or her
business for that month; (2) the gross proceeds of his or her
business upon which the tax is based; (3) the amount of tax for
which he or she is liable; and (4) any further information
considered pertinent by the county commission. A remittance for
the amount of the tax shall accompany the return.
(b) A county commission may, upon written request, authorize
a taxpayer whose books and records are not kept on a monthly
basis to file returns at other times.
§11-13P-11. Consolidated returns.
A county commission may allow a person operating two or more
places of business of like character from which are made or
dispensed sales or services which are taxable hereunder to file
consolidated returns covering all such sales or services, on
forms as prescribed by the county commission.
§11-13P-12. Keeping and preserving of records.
The county commission shall require that each taxpayer remitting taxes pursuant to this section to keep complete and
accurate records of taxable sales and of charges, together with
a record of the tax collected thereon, and to keep all invoices,
bills of lading and other pertinent documents in such form as a
county commission may require. The records and other documents
shall be preserved for a period of time not less than three
years.
§11-13P-13. Records of sheriff; preservation of returns.
The sheriff of each county imposing a tax pursuant to this
article shall keep full and accurate records of all moneys
received by him or her. He or she shall preserve all returns
filed with him or her hereunder for five years.
The sheriff shall keep separate accounts in a permanent book
or in a permanent record on an electronic data processing system,
in the same manner in which records are kept pursuant to section
thirteen, article one, chapter eleven-a of this code, of all the
taxes received and disbursed pursuant to this article by him or
her. Each of the accounts shall be kept so as to show the total
receipts and disbursements up to the close of business on each
day; and in a separate column opposite the totals the sheriff
shall ascertain and note in figures, at the close of each day's transactions, the balance due from or to him or her, as the case
may be, on account of the funds. The account book or a printout
of the permanent record on the electronic data processing system
is subject to inspection at any time by the tax commissioner,
members of the county commission, the clerk of the county
commission, the prosecuting attorney, the mayor or treasurer of
any municipality.
§11-13P-14. Dedication of funds.
Any taxes collected pursuant to this article shall be used
by the county commission for the purpose of funding the services,
equipment and salaries of county emergency services, including
emergency medical services, ambulance services, paramedics,
ambulance drivers, fire departments, firefighters, rescue squads,
hazardous material response teams, sheriff's deputies, and other
emergency services designated by the county commission and
approved by the county's voters.
NOTE: The purpose of this bill is to authorize counties,
subject to the approval of a majority of the county's voters, to
impose a recreation and amusement tax on ski resorts located in
the county. The tax would be collected on specific recreation
and amusement equipment, rentals, services and fees (all associated with the activity of skiing) at a rate of up to three
cents on the dollar. The sheriff of each county is authorized to
collect the tax. Funds collected pursuant to this tax are
dedicated to the funding of county emergency services.
This article is new; therefore, strike-throughs and
underscoring have been omitted.