Senate Bill No. 419
(By Senator Craigo, Boley, Deem, Sprouse, Ball, Dawson, Mitchell,
Minear, Redd, Plymale, Walker, Snyder, Kessler, Love and Edgell)
[Originating in the Committee on Finance;
reported March 1, 2000.]
A BILL to amend and reenact section two, article nineteen, chapter
eleven of the code of West Virginia, one thousand nine hundred
thirty-one, as amended; and to further amend said article by
adding thereto a new section, designated section three, all
relating to the repeal of the soft drinks tax over a period of
five years; deposits of tax revenue to general revenue; and
reduction of amounts taken as discounts.
Be it enacted by the Legislature of West Virginia:
That section two, article nineteen, chapter eleven of the code
of West Virginia, one thousand nine hundred thirty-one, as amended,
be amended and reenacted; and that said article be further amended
by adding thereto a new section, designated section three, all to
read as follows:
ARTICLE 19. SOFT DRINKS TAX.
§11-19-2. Excise tax on bottled soft drinks, syrups and dry
mixtures; disposition thereof.
For the purpose of providing revenue for the
maintenance and operation of a four-year school of medicine,
dentistry and nursing of West Virginia University, an excise tax is
hereby levied and imposed on and after midnight of the last day of
June one thousand nine hundred fifty one, upon the sale, use,
handling or distribution of all bottled soft drinks and all soft
drink syrups, whether manufactured within or without this state. ,
as follows: Subject to the provision of section three of this
article, the rate of tax shall be as follows:
(1) On each bottled soft drink, a tax of one cent on each
sixteen and nine-tenths fluid ounces, or fraction thereof, or on
each one-half liter, or fraction thereof contained therein;
(2) On each gallon of soft drink syrup, a tax of eighty cents,
and in like ratio on each part gallon thereof, or on each four
liters of soft drink syrup a tax of eighty-four cents, and in like
ratio on each part four liters thereof; and
(3) On each ounce by weight of dry mixture or fraction thereof
used for making soft drinks, a tax of one cent or on each 28.35
grams, or fraction thereof, a tax of one cent.
Any person manufacturing or producing within this state any
bottled soft drink or soft drink syrup for sale within this state and any distributor, wholesale dealer or retail dealer or any other
person who is the original consignee of any bottled soft drink or
soft drink syrup manufactured or produced outside this state, or
who brings such drinks or syrups into this state, shall be liable
for the excise tax hereby imposed. The excise tax hereby imposed
shall not be collected more than once in respect to any bottled
soft drink or soft drink syrup manufactured, sold, used or
distributed in this state.
All revenue collected by the commissioner under the provisions
of this article, less such costs of administration as are
hereinafter provided for, shall be paid
by him into a special
medical school fund which is hereby created in the state treasury,
to be used solely for the construction, maintenance and operation
of a four-year school of medicine, dentistry and nursing, as
otherwise provided by law the state fund, general revenue, for
appropriation by the Legislature.
§11-19-3. Repeal of tax; rates of tax.
(a) On and after the first day of July, two thousand ten, the
tax imposed by this article shall be repealed and of no further
effect. On and after midnight of the first day of July, two
thousand, the rate of tax imposed upon the sale, use, handling or
distribution of all bottled soft drinks and all soft drink syrups,
whether manufactured within or without this state shall be reduced by ten percent: Provided, That at midnight on the first day of
each fiscal year for the nine years thereafter, the tax shall be
reduced an additional ten percent until the tax is fully repealed.
(b) Notwithstanding the provisions of section five of this
article, on and after midnight on the first day of July, two
thousand, the amount of the discount allowed under that section
shall be reduced by an amount equal to the reduction in the rate of
tax in that same year: Provided, That in the fiscal year two
thousand two the remainder of the discount shall be repealed.