H. B. 2446
(By Delegates Susman, Hatfield, Linch,
Fleischauer, Kuhn, Houston and Kelley)
[Introduced January 27, 1999; referred to the
Committee on Finance.]
A BILL to amend and reenact section three, article fifteen,
chapter eleven of the code of West Virginia, one thousand
nine hundred thirty-one, as amended, relating to the
consumers sales tax; and phasing out the sales tax on food
over a period of up to ten years.
Be it enacted by the Legislature of West Virginia:
That section three, article fifteen, chapter eleven of the
code of West Virginia, one thousand nine hundred thirty-one, as
amended, be amended and reenacted to read as follows:
ARTICLE 15. CONSUMERS SALES TAX.
§11-15-3. Amount of tax; allocation of tax and transfers.
(a) For the privilege of selling tangible personal property
and of dispensing certain selected services defined in sections
two and eight of this article, the vendor shall collect from the
purchaser the tax as provided under this article, and shall pay the amount of tax to the tax commissioner in accordance with the
provisions of this article.
(b) Beginning on the first day of March, one thousand nine
hundred eighty-nine, the general consumer sales and service tax
imposed by this article shall be at the rate of six cents on the
dollar of sales or services, excluding gasoline and special fuel
sales, which remain taxable at the rate of five cents on the
dollar of sales.
(c) Beginning on the first day of January, two thousand, and
each year thereafter, the general consumer sales and service tax
imposed by this article on food shall be reduced by an amount
equal to the increase in the revenue collections of the general
consumer sales and service tax from the past tax year over the
revenue collections of the general consumer sales and service tax
from the proceeding year before that. Beginning on the fifteenth
day of August, one thousand nine hundred ninety-nine, and each
year thereafter, when the past tax year's general consumer sales
and service tax revenue collections are certified by the
treasurer and the auditor, the amount of surplus revenue
collections, if any, over the preceding year's revenue
collections shall be determined, and the rate of the sales tax on
food shall be reduced in an amount proportionate to the surplus
revenue collections. At a minimum, the general consumer sales
and service tax on food shall be reduced each year for ten years at a rate of at least one-half cent on the dollar of sales or
services, irrespective of the size, or absence, of any surplus
revenue collections. On the first day of January, two thousand
ten, the remaining general consumer sales and service tax on food
shall be removed.
(c) (d) There shall be no tax on sales where the monetary
consideration is five cents or less. The amount of the tax shall
be computed as follows:
(1) On each sale, where the monetary consideration is from
six cents to sixteen cents, both inclusive, one cent.
(2) On each sale, where the monetary consideration is from
seventeen cents to thirty-three cents, both inclusive, two cents.
(3) On each sale, where the monetary consideration is from
thirty-four cents to fifty cents, both inclusive, three cents.
(4) On each sale, where the monetary consideration is from
fifty-one cents to sixty-seven cents, both inclusive, four cents.
(5) On each sale, where the monetary consideration is from
sixty-eight cents to eighty-four cents, both inclusive, five
cents.
(6) On each sale, where the monetary consideration is from
eighty-five cents to one dollar, both inclusive, six cents.
(7) If the sale price is in excess of one dollar, six cents
on each whole dollar of sale price, and upon any fractional part
of a dollar in excess of whole dollars as follows: One cent on the fractional part of the dollar if less than seventeen cents;
two cents on the fractional part of the dollar if in excess of
sixteen cents but less than thirty-four cents; three cents on the
fractional part of the dollar if in excess of thirty-three cents
but less than fifty-one cents; four cents on the fractional part
of the dollar if in excess of fifty cents but less than
sixty-eight cents; five cents on the fractional part of the
dollar if in excess of sixty-seven cents but less than
eighty-five cents; and six cents on the fractional part of the
dollar if in excess of eighty-four cents. For example, the tax
on sales from one dollar and one cent to one dollar and sixteen
cents, both inclusive, seven cents; on sales from one dollar and
seventeen cents to one dollar and thirty-three cents, both
inclusive, eight cents; on sales from one dollar and thirty-four
cents to one dollar and fifty cents, both inclusive, nine cents;
on sales from one dollar and fifty-one cents to one dollar and
sixty-seven cents, both inclusive, ten cents; on sales from one
dollar and sixty-eight cents to one dollar and eighty-four cents,
both inclusive, eleven cents and on sales from one dollar and
eighty-five cents to two dollars, both inclusive, twelve cents.
(d) (e) Separate sales, such as daily or weekly deliveries,
shall may not be aggregated for the purpose of computation of the
tax even though such the sales are aggregated in the billing or
payment therefor. Notwithstanding any other provision, coin-operated amusement and vending machine sales shall be
aggregated for the purpose of computation of this tax.
(e) (f) Of the taxes collected under the provisions of this
article, one sixth of such the taxes collected for the period
subsequent to the thirty-first day of May, one thousand nine
hundred eighty-eight prior to the first day of July, one thousand
nine hundred eighty-nine, and not attributable to or resulting
from the repeal of section eleven of this article or attributable
to tax on purchases of gasoline and special fuel, shall be
reasonably allocated, with allowance for refunds and net of
reasonable costs of administration, to and deposited by the tax
commissioner in the special account created in the treasury by
section eight-a, article four-b, chapter twenty-three of this
code, not to exceed the amount sufficient for making timely
repayment of the principal and interest under the first payment
due, by the thirtieth day of June, one thousand nine hundred
eighty-nine, in repayment for the moneys previously transferred
from such the pneumoconiosis fund.
NOTE: The purpose of this bill is to phase out the sales
tax on food over a period of ten years, or sooner if surplus
revenue collections permit a quicker reduction.
Strike-throughs indicate language that would be stricken
from the present law, and underscoring indicates new language
that would be added.