Senate Bill No. 465
(By Senator Bowman)
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[Introduced February 6, 2003; referred 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
markup 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.