Senate Bill No. 152
(By Senator Bowman)
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[Introduced January 10, 2002; referred to the Committee
on the Judiciary; and then to the Committee on Finance.]
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A BILL to amend and reenact section six, article eleven-a,
chapter forty-seven of the code of West Virginia, one
thousand nine hundred thirty-one, as amended, relating to
allowing a retail mark-up on the sale of cigarettes of ten
percent and on the sale of beer of nineteen percent.
Be it enacted by the Legislature of West Virginia:
That section six, article eleven-a, 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 11A. UNFAIR TRADE PRACTICES.
§47-11A-6. How cost determined.
(a) The term "cost" when applicable to the business of
retailer shall mean means bona fide cost and shall mean further
means:
(i) The invoice cost of the article, product or item of merchandise to the retailer or the replacement cost thereof to
the retailer within thirty days prior to the date of sale, offer
for sale or advertisement for sale, as the case may be, in the
quantity last purchased, whichever is lower, from either of
which there shall be deducted all trade discounts, except
customary discounts for cash; and (ii) to either of which there
shall be added the following items of expense:
(1) Freight charges not otherwise included in the cost of
the article, product or item of merchandise, but which freight
charges shall not be construed as including cartage to retail
outlet if done or paid for by the retailer;
(2) A markup to cover, in part, the cost of doing business,
which markup, in the absence of proof of a lesser cost, shall be
seven percent of the aggregate of invoice cost or replacement
cost (whichever is used), less trade discounts as aforesaid, and
plus said freight charges.
(b) The term "cost" when applicable to the business of a
wholesaler shall mean means
bona fide cost and shall mean
further means:
(i) The invoice cost of the merchandise to the
wholesaler plus applicable taxes, or the replacement cost of the
merchandise to the wholesaler within thirty days prior to the
date of sale, offer for sale or advertisement for sale, as the
case may be, in the quantity last purchased, whichever is lower, from either of which there shall be deducted all trade discounts
except customary discounts for cash; and (ii) to either of which
there shall be added the following items of expense:
(1) Freight charges not otherwise included in the cost of
the article, product or item of merchandise, but which freight
charges shall may not be construed as including cartage to the
retail outlet if done or paid for by the wholesaler;
(2) A markup to cover, in part, the cost of doing business,
which markup in the absence of proof of a lesser cost, shall be
four percent of the aggregate of invoice cost or replacement
cost (whichever is used), less trade discounts as aforesaid, and
plus said the freight charges: Provided, That, for the sale of
cigarettes, the markup shall be ten percent of the aggregate of
invoice cost or replacement cost (whichever is used), less trade
discounts plus freight charges: Provided, however, That, for
the sale of beer, the markup shall be nineteen percent of the
aggregate of invoice cost or replacement cost (whichever is
used), less trade discounts plus freight charges.
NOTE: The purpose of this bill is to
allow a retail markup
on the sale of cigarettes of ten percent and on the sale of beer
of nineteen percent.
Strike-throughs indicate language that would be stricken
from the present law, and underscoring indicates new language
that would be added.