Senate Bill No. 607

(By Senator Snyder)

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[Introduced February 22, 1999;

referred to the Committee on the Judiciary; and then to the Committee on Finance.]

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A Bill to amend and reenact sections three and eight, article
twenty-three, chapter forty-seven of the code of West Virginia, one thousand nine hundred thirty-one, as amended, relating to the statutory fee on sales of charitable raffle boards and games; specifying that wholesalers or distributors of charitable raffle boards and games to retailers shall be licensed and a license fee in the amount of five hundred dollars shall be paid to the tax commissioner by each wholesaler or distributor for an annual license; specifying that wholesalers and distributors shall pay a fee of twenty cents on each dollar of retail value of each charitable raffle board or game sold to a retailer licensed pursuant to article twenty-one of said chapter; specifying that wholesalers and distributors shall pay a fee of three dollars on each dollar of retail value of each charitable raffle board or game sold to retailers not licensed pursuant to article twenty-one of said chapter; specifying that such fee shall be in addition to any tax imposed pursuant to the provisions of article fifteen, chapter eleven of said code; and specifying that the fees imposed by article twenty-three, chapter forty-seven of said code shall be deposited in accordance with the provisions of section two-a, article nine, chapter eleven of said code.

Be it enacted by the Legislature of West Virginia;
That sections three and eight, article twenty-three, chapter forty-seven of the code of West Virginia, one thousand nine hundred thirty-one, as amended, be amended and reenacted to read as follows:
ARTICLE 23. CHARITABLE RAFFLE BOARDS AND GAMES.

§47-23-3. Fees.

Wholesalers or distributors of charitable raffle boards and games to retailers shall be licensed and a license fee in the amount of five hundred dollars shall be paid to the commissioner by each wholesaler or distributor for an annual license. Wholesalers and distributors shall also pay a fee of twenty cents on each dollar of retail value of each charitable raffle board or game sold to a retailer licensed pursuant to article twenty-one of this chapter. Wholesalers and distributors shall also pay a fee of three dollars on each dollar of retail value of each charitable raffle board or game sold to retailers not licensed pursuant to article twenty-one of this chapter. This fee shall be in addition to any tax imposed pursuant to the provisions of article fifteen, chapter eleven of this code. The fees imposed by this article shall be deposited in accordance with the provisions of section two-a, article nine, chapter eleven of this code.
§47-23-8. How fee paid; reports required; due date; records to be kept; inspection of records and stocks; examination of witnesses, summons, etc.

The retail value fee imposed by section three of this article shall be paid by each licensed wholesaler or distributor to the commissioner on or before the twentieth day of April, July, October and January for the preceding three calendar months. The measure of the fee on the retail value of charitable raffle boards or games shall be determined by multiplying the total amount of the retail value of all charitable raffle boards and games sold by a wholesaler or distributor to retailers licensed pursuant to article twenty-one of this chapter during the said three-month period by twenty percent and by multiplying the total amount of the retail value of all charitable raffle boards and games sold by a wholesaler or distributor to retailers not licensed pursuant to article twenty-one of this chapter during the said three-month period by three hundred percent. Said fee shall be in addition to any tax imposed pursuant to the provisions of article fifteen, chapter eleven of this code. All fees due and owing to the commissioner by reason of this article, if paid after the due dates required by this section, shall be subject to the provisions of article ten, chapter eleven of this code. Each wholesaler or distributor shall provide with each quarterly payment of fees a return covering the business transacted in the previous three calendar months and providing such other information as the commissioner may deem necessary for the ascertainment or assessment of the fee imposed by this article. Such return shall be signed under penalty of perjury on such forms as the tax commissioner may prescribe and the wholesaler or distributor shall at the time of filing remit all fees owed or due.
The returns prescribed herein are required, although a fee might not be due or no business transacted for the period covered by the return.
Each person required to file a return under this article shall make and keep such records as shall be prescribed by the commissioner that are necessary to substantiate the returns required by this article, including, but not limited to, invoices, serial numbers or other verification, inventories, receipts, disbursements and sales, for a period of time not less than three years.
Unless otherwise permitted, in writing, by authority of the commissioner, each delivery ticket or invoice for each purchase or sale of charitable raffle boards or games must be recorded upon a serially numbered invoice showing the name and address of the seller and the purchaser, the point of delivery, the date, quantity, serial number and price of the product sold and the fee must be set out separately, and such other reasonable information as the commissioner may require. These invoicing requirements also apply to cash sales and a person making such sales must maintain such records as may be reasonably necessary to substantiate his return.
In addition to the commissioner's powers set forth in section five, article ten, chapter eleven of this code, the commissioner shall have authority to inspect or examine the stock of charitable raffle boards and games kept in and upon the premises of any person where charitable raffle boards and games are placed, stored or sold, and he or she shall have authority to inspect or examine the records, books, papers and any equipment or records of manufacturers, wholesalers and distributors or any other person for the purpose of determining the quantity of charitable raffle boards and games acquired or disbursed to verify the truth and accuracy of any statement or return and to ascertain whether the fee imposed by this article has been properly paid.
In addition to the commissioner's powers set forth in section five, article ten, chapter eleven of this code, and as a further means of obtaining the records, books and papers of a manufacturer, wholesaler, distributor or any other person and ascertaining the amount of fees and returns due under this article, the commissioner shall have the power to examine witnesses under oath; and if the witness shall fail or refuse at the request of the commissioner to grant access to the books, records or papers, the commissioner shall certify the facts and names to the circuit court of the county having jurisdiction of the party and such court shall thereupon issue summons to such party to appear before the commissioner, at a place designated within the jurisdiction of such court, on a day fixed, to be continued as the occasion may require for good cause shown and give such evidence and lay open for inspection such books and papers as may be required for the purpose of ascertaining the amount of fee and returns due, if any.
Note: The purpose of this bill is to increase the fee applied on the distribution of raffle tickets, tips and similar gaming paraphernalia sold to persons other than charitable raffle licensees.

Strike-throughs indicate language that would be stricken from the present law, and underscoring indicates new language that would be added.