H. B. 2013

(By Delegates Azinger and Webb)
[Introduced January 8, 2003; 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 a gradual elimination of the food sales tax; and increasing the sales tax on other items from six percent to six and one-half percent.

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 July, two thousand three, the general consumer sales and service tax imposed by this article shall be at the rate of six and one-half 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) 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 and one-half.
(7) If the sale price is in excess of one dollar, six and one-half 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 and one-half 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 and one-half cents; on sales from one dollar and seventeen cents to one dollar and thirty-three cents, both inclusive, eight and one-half cents; on sales from one dollar and thirty-four cents to one dollar and fifty cents, both inclusive, nine and one-half cents; on sales from one dollar and fifty-one cents to one dollar and sixty-seven cents, both inclusive, ten and one-half cents; on sales from one dollar and sixty-eight cents to one dollar and eighty-four cents, both inclusive, eleven and one-half cents and on sales from one dollar and eighty-five cents to two dollars, both inclusive, twelve thirteen cents.
(d) Separate sales, such as daily or weekly deliveries, shall may not be aggregated for the purpose of computation of the tax even though such 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) Of the taxes collected under the provisions of this article, one sixth of such 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 pneumoconiosis fund.
(f) Food shall be exempt from consumer sales tax according to the following schedule:
(1) On and after the first day of July, two thousand three, the consumer sales tax on food shall be reduced to three percent;
(2) On and after the first day of July, two thousand four, the consumer sales tax on food shall be reduced to two percent;
(3) On and after the first day of July, two thousand five, the consumer sales tax on food shall be reduced to one percent; and
(4) On and after the first day of July, two thousand six, the consumer sales tax on food shall be eliminated and food shall be exempt from taxation under this article.


NOTE: The purpose of this bill is to reduce sales tax on food to 3% on July 1, 2003, and then by a penny a year for the next three years until the tax is finally eliminated. It also increases the sales tax on all other sales from 6% to 6½%.

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