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SB388 SUB1 Senate Bill 388 History

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SB388 SUB1
COMMITTEE SUBSTITUTE

FOR


Senate Bill No. 388

(By Senators Hall and White)

____________

[Originating in the Committee on Transportation and Infrastructure; reported March 27, 2009.]

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A BILL to amend and reenact §11-15-3c of the Code of West Virginia, 1931, as amended; and to amend said code by adding thereto a new section, designated §11-15-9m, all relating to providing an exemption from the motor vehicle sales tax for the purchase in this state of a motor vehicle during a certain time period in the calendar year 2009; and providing a motor vehicle sales tax holiday for sales in this state of certain fuel-efficient vehicles during a certain time period in each of the calendar years 2009, 2010 and 2011.

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; and that said code be amended by adding thereto a new section, designated §11-15-9m, all to read as follows:
ARTICLE 15. CONSUMERS SALES AND SERVICE TAX.
§11-15-3c. Imposition of consumer 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 Department 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 July 1, 2008, all motor vehicle sales to West Virginia residents shall be subject to the consumer 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; 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 of this chapter. 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 and $.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;
(D) Presents an affidavit, completed by the assessor of the applicant's county of residence, establishing that the vehicle has been properly reported and is on record in the office of the assessor as personal property; and
(E) 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.
(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 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 of said chapter.
(j) Notwithstanding any provision of this article or article fifteen-a of this chapter to the contrary, beginning seven calendar days after the date of passage and continuing for thirty consecutive days, all motor vehicles sales made within the State of West Virginia are exempt from payment of the consumer sales tax as imposed by this article.
§11-15-9m. Annual exemption for purchase of certain fuel efficient vehicles.
There is established an annual sales tax holiday on the sale of certain fuel efficient vehicles from the taxes imposed by this article if:
(1) The sale in this state takes place in the calendar year 2009, 2010 or 2011 and during a period beginning at 12:01 a.m. eastern daylight time on September 1 and ending at 11:59 p.m. eastern daylight time on September 14; and
(2) Are labeled by manufacturers as hybrid vehicles.


NOTE: The purpose of this bill is to provide an exemption from the motor vehicle sales tax for the purchase of a motor vehicle during a certain time period in the calendar year 2009; and providing a sales tax holiday for sales in this state of certain fuel efficient vehicles during a certain time period in each of the calendar years 2009, 2010 and 2011.

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

§11-15-9m is new; therefore, strike-throughs and underscoring have been omitted.

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