Introduced Version
Senate Bill 17 History
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Key: Green = existing Code. Red = new code to be enacted
Senate Bill No. 17
(By Senators Williams and Beach)
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[Introduced February 13, 2013; referred to the Committee on
Transportation and Infrastructure; and then to the Committee on
Finance.]
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A BILL to amend and reenact §11-15-3c of the Code of West Virginia,
1931, as amended, relating to the taxing of utility terrain
vehicles; making an exception for vehicles used for
agricultural purposes; and defining "utility terrain vehicles"
as motor vehicles.
Be it enacted by the Legislature of West Virginia:
That §11-15-3c of the Code of West Virginia, 1931, as amended,
be amended and reenacted to read as follows:
ARTICLE 15. CONSUMERS SALES AND SERVICE TAX.
§11-15-3c. Imposition of consumers sales tax on motor vehicle
sales; rate of tax; use of motor vehicle purchased out of
state; definition of "sale"; definition of "motor vehicle"; exemptions; collection of tax by Division of Motor Vehicles;
dedication of tax to highways; legislative and emergency
rules.
(a) Notwithstanding any provision of this article or article
fifteen-a of this chapter to the contrary, beginning on July 1,
2008, all motor vehicle sales to West Virginia residents shall be
subject to the consumers sales tax imposed by this article.
(b) Rate of tax on motor vehicles. -- Notwithstanding any
provision of this article or article fifteen-a of this chapter to
the contrary, the rate of tax on the sale and use of a motor
vehicle shall be five percent of its sale price, as defined in
section two, article fifteen-b of this chapter: Provided, That so
much of the sale price or consideration as is represented by the
exchange of other vehicles on which the tax imposed by this section
or section four, article three, chapter seventeen-a of this code
has been paid by the purchaser shall be deducted from the total
actual sale price paid for the motor vehicle, whether the motor
vehicle be new or used.
(c) Motor vehicles purchased out of state. -- Notwithstanding
this article or article fifteen-a to the contrary, the tax imposed
by this section shall apply to all motor vehicles, used as defined
by section one, article fifteen-a of this chapter, within this state, regardless of whether the vehicle was purchased in a state
other than West Virginia.
(d) Definition of "sale". -- Notwithstanding any provision of
this article or article fifteen-a of this chapter to the contrary,
for purposes of this section, "sale", "sales" or "selling" means
any transfer or lease of the possession or ownership of a motor
vehicle for consideration, including isolated transactions between
individuals not being made in the ordinary course of repeated and
successive business and also including casual and occasional sales
between individuals not conducted in a repeated manner or in the
ordinary course of repetitive and successive transactions.
(e) Definition of "motor vehicle". -- For purposes of this
section, "motor vehicle" means every propellable device in or upon
which any person or property is or may be transported or drawn upon
a highway including, but not limited to: Automobiles; buses; motor
homes; motorcycles; motorboats; all-terrain vehicles; utility
terrain vehicles; snowmobiles; low-speed vehicles; trucks, truck
tractors and road tractors having a weight of less than fifty-five
thousand pounds; trailers, semitrailers, full trailers, pole
trailers and converter gear having a gross weight of less than two
thousand pounds; and motorboat trailers, fold-down camping
trailers, traveling trailers, house trailers and motor homes;
except that the term "motor vehicle" does not include: Modular homes, manufactured homes, mobile homes, similar nonmotive
propelled vehicles susceptible of being moved upon the highways but
primarily designed for habitation and occupancy; devices operated
regularly for the transportation of persons for compensation under
a certificate of convenience and necessity or contract carrier
permit issued by the Public Service Commission; mobile equipment as
defined in section one, article one, chapter seventeen-a of this
code; special mobile equipment as defined in section one, article
one, chapter seventeen-a of this code; trucks, truck tractors and
road tractors having a gross weight of fifty-five thousand pounds
or more; trailers, semitrailers, full trailers, pole trailers and
converter gear having weight of two thousand pounds or greater:
Provided, That notwithstanding the provisions of section nine,
article fifteen, chapter eleven of this code, the exemption from
tax under this section for mobile equipment as defined in section
one, article one, chapter seventeen-a of this code; special mobile
equipment defined in section one, article one, chapter seventeen-a
of this code; Class B trucks, truck tractors and road tractors
registered at a gross weight of fifty-five thousand pounds or more;
and Class C trailers, semitrailers, full trailers, pole trailers
and converter gear having weight of two thousand pounds or greater
does not subject the sale or purchase of the vehicle to the
consumer sales and service tax imposed by section three of this article.
(f) Exemptions. -- Notwithstanding any other provision of this
code to the contrary, the tax imposed by this section shall not be
subject to any exemption in this code other than the following:
(1) The tax imposed by this section does not apply to any
passenger vehicle offered for rent in the normal course of business
by a daily passenger rental car business as licensed under the
provisions of article six-d, chapter seventeen-a of this code. For
purposes of this section, a daily passenger car means a motor
vehicle having a gross weight of eight thousand pounds or less and
is registered in this state or any other state. In lieu of the tax
imposed by this section, there is hereby imposed a tax of not less
than $1 nor more than $1.50 for each day or part of the rental
period. The Commissioner of Motor Vehicles shall propose an
emergency rule in accordance with the provisions of article three,
chapter twenty-nine-a of this code to establish this tax.
(2) The tax imposed by this section does not apply where the
motor vehicle has been acquired by a corporation, partnership or
limited liability company from another corporation, partnership or
limited liability company that is a member of the same controlled
group and the entity transferring the motor vehicle has previously
paid the tax on that motor vehicle imposed by this section. For the
purposes of this section, control means ownership, directly or indirectly, of stock or equity interests possessing fifty percent
or more of the total combined voting power of all classes of the
stock of a corporation or equity interests of a partnership or
limited liability company entitled to vote or ownership, directly
or indirectly, of stock or equity interests possessing fifty
percent or more of the value of the corporation, partnership or
limited liability company.
(3) The tax imposed by this section does not apply where motor
vehicle has been acquired by a senior citizen service organization
which is exempt from the payment of income taxes under the United
States Internal Revenue Code, Title 26 U. S. C. §501(c)(3) and
which is recognized to be a bona fide senior citizen service
organization by the Bureau of Senior Services existing under the
provisions of article five, chapter sixteen of this code.
(4) The tax imposed by this section does not apply to any
active duty military personnel stationed outside of West Virginia
who acquires a motor vehicle by sale within nine months from the
date the person returns to this state.
(5) The tax imposed by this section does not apply to motor
vehicles acquired by registered dealers of this state for resale
only.
(6) The tax imposed by this section does not apply to motor
vehicles acquired by this state or any political subdivision thereof or by any volunteer fire department or duly chartered
rescue or ambulance squad organized and incorporated under the laws
of this state as a nonprofit corporation for protection of life or
property.
(7) The tax imposed by this section does not apply to motor
vehicles acquired by an urban mass transit authority, as defined in
article twenty-seven, chapter eight of this code, or a nonprofit
entity exempt from federal and state income tax under the Internal
Revenue Code for the purpose of providing mass transportation to
the public at large or designed for the transportation of persons
and being operated for the transportation of persons in the public
interest.
(8) The tax imposed by this section does not apply to the
registration of a vehicle owned and titled in the name of a
resident of this state if the applicant:
(A) Was not a resident of this state at the time the applicant
purchased or otherwise acquired ownership of the vehicle;
(B) Presents evidence as the Commissioner of Motor Vehicles
may require of having titled the vehicle in the applicant's
previous state of residence;
(C) Has relocated to this state and can present such evidence
as the Commissioner of Motor Vehicles may require to show bona fide
residency in this state; and
(D) Makes application to the Division of Motor Vehicles for a
title and registration and pays all other fees required by chapter
seventeen-a of this code within thirty days of establishing
residency in this state as prescribed in subsection (a), section
one-a of this article.
(9) On and after January 1, 2009, the tax imposed by this
section does not apply to Class B trucks, truck tractors and road
tractors registered at a gross weight of fifty-five thousand pounds
or more or to Class C trailers, semitrailers, full trailers, pole
trailers and converter gear having a weight of two thousand pounds
or greater. If an owner of a vehicle has previously titled the
vehicle at a declared gross weight of fifty-five thousand pounds or
more and the title was issued without the payment of the tax
imposed by this section, then before the owner may obtain
registration for the vehicle at a gross weight less than fifty-five
thousand pounds, the owner shall surrender to the commissioner the
exempted registration, the exempted certificate of title and pay
the tax imposed by this section based upon the current market value
of the vehicle.
(10) The tax imposed by this section does not apply to
vehicles leased by residents of West Virginia. On or after January
1, 2009, a tax is imposed upon the monthly payments for the lease
of any motor vehicle leased under a written contract of lease by a resident of West Virginia for a contractually specified continuous
period of more than thirty days, which tax is equal to five percent
of the amount of the monthly payment, applied to each payment, and
continuing for the entire term of the initial lease period. The tax
shall be remitted to the Division of Motor Vehicles on a monthly
basis by the lessor of the vehicle. Leases of thirty days or less
are taxable under the provisions of this article and article
fifteen-a of this chapter without reference to this section.
____(11) The tax imposed by this section does not apply to utility
terrain vehicles used for the commercial production of an
agricultural product whose ultimate sale is subject to tax under
this article where the vehicle is used on farmland valued in
accordance with section ten, article one-a of this chapter and
legislative rule: Provided, That the purchaser presents to the
vendor a completed application for farm use valuation for the
property being farmed by the purchaser and the application bears
the assessor's stamp that the application was granted.
(g) Division of Motor Vehicles to collect. -- Notwithstanding
any provision of this article, article fifteen-a and article ten of
this chapter to the contrary, the Division of Motor Vehicles shall
collect the tax imposed by this section: Provided, That such tax is
imposed upon the monthly payments for the lease of any motor
vehicle leased by a resident of West Virginia, which tax is equal to five percent of the amount of the monthly payment, applied to
each payment, and continuing for the entire term of the initial
lease period. The tax shall be remitted to the Division of Motor
Vehicles on a monthly basis by the lessor of the vehicle.
(h) Dedication of tax to highways. -- Notwithstanding any
provision of this article or article fifteen-a of this chapter to
the contrary, all taxes collected pursuant to this section, after
deducting the amount of any refunds lawfully paid, shall be
deposited in the State Road Fund in the State Treasury and expended
by the Commissioner of Highways for design, maintenance and
construction of roads in the state highway system.
(i) Legislative rules; emergency rules. -- Notwithstanding any
provision of this article, article fifteen-a and article ten of
this chapter to the contrary, the Commissioner of Motor Vehicles
shall promulgate legislative rules explaining and implementing this
section, which rules shall be promulgated in accordance with the
provisions of article three, chapter twenty-nine-a of this code and
should include a minimum taxable value and set forth instances when
a vehicle is to be taxed at fair market value rather than its
purchase price. The authority to promulgate rules includes
authority to amend or repeal those rules. If proposed legislative
rules for this section are filed in the State Register before June
15, 2008, those rules may be promulgated as emergency legislative rules as provided in article three, chapter twenty-nine-a of this
code.
(j) Notwithstanding any other provision of this code,
effective January 1, 2009, no municipal sales or use tax or local
sales or use tax or special downtown redevelopment district excise
tax or special district excise tax shall be imposed under article
twenty-two, chapter seven of this code or article thirteen, chapter
eight of this code or article thirteen-b of said chapter or article
thirty-eight of said chapter or any other provision of this code,
except this section, on sales of motor vehicles as defined in this
article or on any tangible personal property excepted or exempted
from tax under this section. Nothing in this subsection shall be
construed to prevent the application of the municipal business and
occupation tax on motor vehicle retailers and leasing companies.
NOTE: The purpose of this bill is to tax utility terrain
vehicles. The bill makes an exception for vehicles used for
agricultural purposes. The bill also defines utility terrain
vehicles as motor vehicles.
Strike-throughs indicate language that would be stricken from
the present law, and underscoring indicates new language that would
be added.