Introduced Version
House Bill 3135 History
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Key: Green = existing Code. Red = new code to be enacted
H. B. 3135
(By Mr. Speaker, Mr. Thompson, and Delegate Armstead)
[By Request of the Executive]
[Introduced February 20, 2007; referred to the
Committee on Finance.]
A BILL to amend and reenact §11-19-2, §11-19-4 and §11-19-5 of the
Code of West Virginia, 1931, as amended, and to amend said
code by adding thereto a new section designated §11-19-13, all
relating to the soft drinks tax; annually reducing said tax by
approximately one-fourteenth each year for fourteen years;
eliminating the requirement to use stamps, crowns and other
indicia of taxation; authorizing the tax commissioner to
prescribe the use of an invoice method to account for the tax
liability by retail dealers, wholesale dealers and
distributors; and authorizing the amount of discount to be
available if the tax commissioner requires the use of the
invoice method for collecting the amount of tax due.
Be it enacted by the Legislature of West Virginia:
That §11-19-2, §11-19-4 and §11-19-5 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 §11-19-
13, all to read as follows:
ARTICLE 19. SOFT DRINKS TAX.
§11-19-2. Excise tax on bottled soft drinks, syrups and dry
mixtures; disposition thereof.
For the purpose of providing revenue for the construction,
maintenance and operation of a four-year school of medicine,
dentistry and nursing of West Virginia University, an excise tax is
hereby levied and imposed on and after midnight of the last day of
June, one thousand nine hundred fifty-one, upon the sale, use,
handling or distribution of all bottled soft drinks and all soft
drink syrups, whether manufactured within or without this State, as
follows:
(1) On each bottled soft drink, a tax of one cent on each
sixteen and nine-tenths fluid ounces, or fraction thereof, or on
each one-half liter, or fraction thereof contained therein.
(2) On each gallon of soft drink syrup, a tax of eighty cents,
and in like ratio on each part gallon thereof, or on each four
liters of soft drink syrup a tax of eighty-four cents, and in like
ratio on each part four liters thereof.
(3) On each ounce by weight of dry mixture or fraction thereof
used for making soft drinks, a tax of one cent or on each 28.35
grams, or fraction thereof, a tax of one cent;
(4)On and after the first day of July, two thousand eight, the rate of tax hereby imposed shall be as stated in section
thirteen of this article.
Any person manufacturing or producing within this State any
bottled soft drink or soft drink syrup for sale within this State
and any distributor, wholesale dealer or retail dealer or any other
person who is the original consignee of any bottled soft drink or
soft drink syrup manufactured or produced outside this State, or
who brings such drinks or syrups into this State, shall be liable
for the excise tax hereby imposed. The excise tax hereby imposed
shall not be collected more than once in respect to any bottled
soft drink or soft drink syrup manufactured, sold, used or
distributed in this State.
All revenue collected by the commissioner under the provisions
of this article, less such costs of administration as are
hereinafter provided for, shall be paid by him into a special
medical school fund, which is hereby created in the state treasury,
to be used solely for the construction, maintenance and operation
of a four-year school of medicine, dentistry and nursing, as
otherwise provided by law.
§11-19-4. Affixing of tax stamps or tax crowns.
The payment of the taxes herein provided shall be evidenced by
the affixing of soft drink tax stamps or tax crowns to the original
containers or bottles in which any bottled soft drink or syrup is
placed, received, stored or handled: Provided, That on and after
the first day of July, two thousand eight, the tax imposed by this article on the sale, use, handling or distribution of all bottled
soft drinks and all soft drink syrups, whether manufactured within
or without this State, may be paid using an invoice method if so
prescribed by the tax commissioner. Such stamps or crowns, of the
appropriate denomination, shall be affixed to each container of
syrup and to each bottled soft drink by the person who under the
provisions of this article is first required to pay the tax
thereon, within twenty-four hours after such person has such
bottled soft drink or syrup in his possession for the first time.
The provisions of this paragraph shall not apply to syrup used by
bottlers in the manufacture of bottled soft drinks, or to bottled
soft drinks or syrups which are transported through this State and
which are not sold, delivered, used or stored herein, if
transported in accordance with such rules and regulations as may be
promulgated by the commissioner, or to any bottled drink or syrup
which is manufactured in this State and sold to a purchaser outside
this State.
Except as otherwise provided in this section, it shall be
unlawful for any person to sell, use, handle or distribute any
bottled soft drink or soft drink syrup to which the tax stamps or
tax crowns required by this section are not affixed, and any person
who shall violate this provision shall be guilty of a misdemeanor
and, upon conviction thereof, shall be punished by a fine of not
less than one hundred dollars nor more than five hundred dollars,
or by imprisonment for not more than six months, or by both such fine and imprisonment.
§11-19-5. Purchase of tax stamps or tax crowns; discounts and
commissions; refunds and statute of limitations;
effective date
.
The commissioner is hereby authorized to promulgate rules and
regulations governing the design, purchase, sale and distribution
of tax stamps and tax crowns required by this article.
Manufacturers or distributors of crowns may be required to furnish
bond to ensure faithful compliance with such regulations. Any
person desiring to purchase such crowns shall obtain from the
commissioner an authorization to do so, which shall specify the
number of crowns to be purchased, and upon shipment thereof the
manufacturer shall transmit to the commissioner a copy of the
invoice of such shipment. The commissioner shall not authorize the
purchase of crowns by any person who is in default in the payment
of any tax required by this article.
The commissioner shall sell the stamps required by this
article, or may authorize any sheriff, or any bank or trust company
in this State, to sell such stamps as his deputy, and may allow as
a commission a fee of one half of one percent of the face value of
all stamps sold by such deputy. In the sale of such stamps the
commissioner shall allow the following discounts: On a sale of less
than twenty-five dollars, no discount; on a sale of twenty-five
dollars or over and less than fifty dollars, a discount of five percent; and on a sale of fifty dollars or more, a discount of ten
percent: Provided, That if the tax commissioner requires the use of
the invoice method for payment of the tax imposed by this article,
the tax commissioner shall allow the following discounts for
wholesale dealers and retail dealers: For a total tax due in an
amount that is less than twenty-five dollars, there shall be no
discount; for a total amount of tax due that is equal to or greater
than twenty-five dollars but less than fifty dollars, the discount
shall be five percent of the total tax due; and for a total amount
of tax due that is equal to or greater than fifty dollars, the
discount shall be ten percent of the tax due.
In the case of stamps, the tax imposed by this article shall
be paid in advance at the time the stamps are purchased. In the
case of tax crowns, the tax shall be paid in advance at the time
the tax commissioner authorizes the purchase of such tax crowns,
unless the purchaser applies for and obtains credit as provided in
the following paragraph.
Whenever any person applies for an authorization to purchase
tax crowns, he may apply for an extension of credit on the tax due
with respect to such crowns, and if he files a bond in the form
prescribed by the commissioner, with satisfactory corporate surety,
in an amount not less than twenty-five percent more than the tax
due with respect to the tax crowns to be purchased, the
commissioner shall issue the necessary authorization. Any person
who obtains such credit shall, on or before the fifteenth day of each month, file with the commissioner on forms prescribed by him
a return stating the number of tax crowns used by such person
during the preceding month, and he shall at the same time pay to
the commissioner the tax due on the crowns so used: Provided, That
if the tax commissioner requires the use of the invoice method for
payment of the tax imposed by this article, there shall be no
extension of credit for any amount of tax due.
The commissioner shall allow to each purchaser of tax crowns,
whether for cash or credit, a discount of twelve and one half
percent of the tax value of such crowns. Such discount, and the
discount allowed on the sale of tax stamps, shall be in lieu of the
allowance of any claim for refund by reason of the breakage or
destruction of containers stamped or crowned as provided in this
article, the spoilation of the soft drinks or syrups, or the loss
or destruction of tax stamps or tax crowns. Provided, That when the
tax stamps or crowns or soft drinks, soft drink powders or soft
drink syrups upon which tax has been paid are destroyed by fire,
lightning or flood and when soft drinks, syrups or powders upon
which tax has been paid are exported from this State or are
required to be destroyed pursuant to federal or state order, the
taxpayer may file a claim for refund for an amount equal to the
amount of tax actually paid for such stamps or crowns. The
commissioner shall cause a refund to be made under this section
only when a claim for refund is filed within one hundred and eighty
days from the date the tax stamps or crowns were destroyed or the soft drink product upon which tax was paid were destroyed or
exported from this State. Any claim for refund not timely filed
shall not be construed to be or to constitute a moral obligation of
this State for payment. Such claim for refund shall also be subject
to the provisions of section fourteen, article ten of this chapter.
At the election of the taxpayer, the amount of any refund may be
established as a credit. The amount refunded or credited under this
section shall not be subject to the interest provisions of
subsection (d), section seventeen, article ten of this chapter:
Provided, That if the tax commissioner requires the use of the
invoice method for payment of the tax imposed by this article, the
tax commissioner shall allow to each distributor a discount of
twelve and one-half percent of the total tax due.
Effective date --The provisions of this section as hereby amended
shall apply to soft drinks tax stamps or crowns destroyed on or
after the first day of July, one thousand nine hundred eighty, and
to soft drinks, powders and syrups exported or destroyed on or
after the first day of said July. The provisions of this section in
effect prior to the said first day of July shall apply to tax
stamps, crowns and soft drinks, powders and syrups destroyed or
exported prior to said date.
§11-19-13. Phase out and elimination of tax on bottled soft
drinks, syrups and dry mixtures.
(a) Effective the first day of July, two thousand eight, the rate of tax imposed under section two of this article shall be
reduced to the following rates:
(1) On each bottled soft drink, a tax of ninety-three
hundredths of one cent on each sixteen and nine-tenths fluid
ounces, or fraction thereof, or on each one-half liter, or fraction
thereof contained therein.
(2) On each gallon of soft drink syrup, a tax of seventy-four
cents, and in like ratio on each part gallon thereof, or on each
four liters of soft drink syrup a tax of seventy-eight cents, and
in like ratio on each part four liters thereof.
(3) On each ounce by weight of dry mixture or fraction thereof
used for making soft drinks, a tax of ninety-three hundredths of
one cent or on each 28.35 grams, or fraction thereof, a tax of
ninety-three hundredths of one cent.
(b) Effective the first day of July, two thousand nine, the
rate of tax imposed under section two of this article shall be
reduced to the following rates:
(1) On each bottled soft drink, a tax of eighty-six hundredths
of one cent on each sixteen and nine-tenths fluid ounces, or
fraction thereof, or on each one-half liter, or fraction thereof
contained therein.
(2) On each gallon of soft drink syrup, a tax of sixty-eight
cents, and in like ratio on each part gallon thereof, or on each
four liters of soft drink syrup a tax of seventy-two cents, and in
like ratio on each part four liters thereof.
(3) On each ounce by weight of dry mixture or fraction thereof
used for making soft drinks, a tax of eighty-six hundredths of one
cent or on each 28.35 grams, or fraction thereof, a tax of eighty-
six hundredths of one cent.
(c) Effective the first day of July, two thousand ten, the
rate of tax imposed under section two of this article shall be
reduced to the following rates:
(1) On each bottled soft drink, a tax of seventy-nine
hundredths of one cent on each sixteen and nine-tenths fluid
ounces, or fraction thereof, or on each one-half liter, or fraction
thereof contained therein.
(2) On each gallon of soft drink syrup, a tax of sixty-two
cents, and in like ratio on each part gallon thereof, or on each
four liters of soft drink syrup a tax of sixty-six cents, and in
like ratio on each part four liters thereof.
(3) On each ounce by weight of dry mixture or fraction thereof
used for making soft drinks, a tax of seventy-nine hundredths of
one cent or on each 28.35 grams, or fraction thereof, a tax of
seventy-nine hundredths of one cent.
(d) Effective the first day of July, two thousand eleven, the
rate of tax imposed under section two of this article shall be
reduced to the following rates:
(1) On each bottled soft drink, a tax of seventy-two
hundredths of one cent on each sixteen and nine-tenths fluid
ounces, or fraction thereof, or on each one-half liter, or fraction thereof contained therein.
(2) On each gallon of soft drink syrup, a tax of fifty-six
cents, and in like ratio on each part gallon thereof, or on each
four liters of soft drink syrup a tax of sixty cents, and in like
ratio on each part four liters thereof.
(3) On each ounce by weight of dry mixture or fraction thereof
used for making soft drinks, a tax of seventy-two hundredths of one
cent or on each 28.35 grams, or fraction thereof, a tax of seventy-
two hundredths of one cent.
(e) Effective the first day of July, two thousand twelve, the
rate of tax imposed under section two of this article shall be
reduced to the following rates:
(1) On each bottled soft drink, a tax of sixty-five hundredths
of one cent on each sixteen and nine-tenths fluid ounces, or
fraction thereof, or on each one-half liter, or fraction thereof
contained therein.
(2) On each gallon of soft drink syrup, a tax of fifty cents,
and in like ratio on each part gallon thereof, or on each four
liters of soft drink syrup a tax of fifty-four cents, and in like
ratio on each part four liters thereof.
(3) On each ounce by weight of dry mixture or fraction thereof
used for making soft drinks, a tax of sixty-five hundredths of one
cent or on each 28.35 grams, or fraction thereof, a tax of sixty-
five hundredths of one cent.
(f) Effective the first day of July, two thousand thirteen, the rate of tax imposed under section two of this article shall be
reduced to the following rates:
(1) On each bottled soft drink, a tax of fifty-eight
hundredths of one cent on each sixteen and nine-tenths fluid
ounces, or fraction thereof, or on each one-half liter, or fraction
thereof contained therein.
(2) On each gallon of soft drink syrup, a tax of forty-four
cents, and in like ratio on each part gallon thereof, or on each
four liters of soft drink syrup a tax of forty-eight cents, and in
like ratio on each part four liters thereof.
(3) On each ounce by weight of dry mixture or fraction thereof
used for making soft drinks, a tax of fifty-eight hundredths of one
cent or on each 28.35 grams, or fraction thereof, a tax of fifty-
eight hundredths of one cent.
(g) Effective the first day of July, two thousand fourteen,
the rate of tax imposed under section two of this article shall be
reduced to the following rates:
(1) On each bottled soft drink, a tax of fifty-one hundredths
of one cent on each sixteen and nine-tenths fluid ounces, or
fraction thereof, or on each one-half liter, or fraction thereof
contained therein.
(2) On each gallon of soft drink syrup, a tax of thirty-eight
cents, and in like ratio on each part gallon thereof, or on each
four liters of soft drink syrup a tax of forty-two cents, and in
like ratio on each part four liters thereof.
(3) On each ounce by weight of dry mixture or fraction thereof
used for making soft drinks, a tax of fifty-one hundredths of one
cent or on each 28.35 grams, or fraction thereof, a tax of fifty-
one hundredths of one cent.
(h) Effective the first day of July, two thousand fifteen, the
rate of tax imposed under section two of this article shall be
reduced to the following rates:
(1) On each bottled soft drink, a tax of forty-four hundredths
of one cent on each sixteen and nine-tenths fluid ounces, or
fraction thereof, or on each one-half liter, or fraction thereof
contained therein.
(2) On each gallon of soft drink syrup, a tax of thirty-two
cents, and in like ratio on each part gallon thereof, or on each
four liters of soft drink syrup a tax of thirty-six cents, and in
like ratio on each part four liters thereof.
(3) On each ounce by weight of dry mixture or fraction thereof
used for making soft drinks, a tax of forty-four hundredths of one
cent or on each 28.35 grams, or fraction thereof, a tax of forty-
four hundredths of one cent.
(i) Effective the first day of July, two thousand sixteen, the
rate of tax imposed under section two of this article shall be
reduced to the following rates:
(1) On each bottled soft drink, a tax of thirty-seven
hundredths of one cent on each sixteen and nine-tenths fluid
ounces, or fraction thereof, or on each one-half liter, or fraction thereof contained therein.
(2) On each gallon of soft drink syrup, a tax of twenty-six
cents, and in like ratio on each part gallon thereof, or on each
four liters of soft drink syrup a tax of thirty cents, and in like
ratio on each part four liters thereof.
(3) On each ounce by weight of dry mixture or fraction thereof
used for making soft drinks, a tax of thirty-seven hundredths of
one cent or on each 28.35 grams, or fraction thereof, a tax of
thirty-seven hundredths of one cent.
(j) Effective the first day of July, two thousand seventeen,
the rate of tax imposed under section two of this article shall be
reduced to the following rates:
(1) On each bottled soft drink, a tax of thirty hundredths of
one cent on each sixteen and nine-tenths fluid ounces, or fraction
thereof, or on each one-half liter, or fraction thereof contained
therein.
(2) On each gallon of soft drink syrup, a tax of twenty cents,
and in like ratio on each part gallon thereof, or on each four
liters of soft drink syrup a tax of twenty-four cents, and in like
ratio on each part four liters thereof.
(3) On each ounce by weight of dry mixture or fraction thereof
used for making soft drinks, a tax of thirty hundredths of one cent
or on each 28.35 grams, or fraction thereof, a tax of thirty
hundredths of one cent.
(k) Effective the first day of July, two thousand eighteen, the rate of tax imposed under section two of this article shall be
reduced to the following rates:
(1) On each bottled soft drink, a tax of twenty-three
hundredths of one cent on each sixteen and nine-tenths fluid
ounces, or fraction thereof, or on each one-half liter, or fraction
thereof contained therein.
(2) On each gallon of soft drink syrup, a tax of fourteen
cents, and in like ratio on each part gallon thereof, or on each
four liters of soft drink syrup a tax of eighteen cents, and in
like ratio on each part four liters thereof.
(3) On each ounce by weight of dry mixture or fraction thereof
used for making soft drinks, a tax of twenty-three hundredths of
one cent or on each 28.35 grams, or fraction thereof, a tax of
twenty-three hundredths of one cent.
(l) Effective the first day of July, two thousand nineteen,
the rate of tax imposed under section two of this article shall be
reduced to the following rates:
(1) On each bottled soft drink, a tax of sixteen hundredths of
one cent on each sixteen and nine-tenths fluid ounces, or fraction
thereof, or on each one-half liter, or fraction thereof contained
therein.
(2) On each gallon of soft drink syrup, a tax of eight cents,
and in like ratio on each part gallon thereof, or on each four
liters of soft drink syrup a tax of twelve cents, and in like ratio
on each part four liters thereof.
(3) On each ounce by weight of dry mixture or fraction thereof
used for making soft drinks, a tax of sixteen hundredths of one
cent or on each 28.35 grams, or fraction thereof, a tax of sixteen
hundredths of cent.
(m) Effective the first day of July, two thousand twenty, the
rate of tax imposed under section two of this article shall be
reduced to the following rates:
(1) On each bottled soft drink, a tax of nine hundredths of
one cent on each sixteen and nine-tenths fluid ounces, or fraction
thereof, or on each one-half liter, or fraction thereof contained
therein.
(2) On each gallon of soft drink syrup, a tax of two cents,
and in like ratio on each part gallon thereof, or on each four
liters of soft drink syrup a tax of six cents, and in like ratio on
each part four liters thereof.
(3) On each ounce by weight of dry mixture or fraction thereof
used for making soft drinks, a tax of nine hundredths of one cent
or on each 28.35 grams, or fraction thereof, a tax of nine
hundredths of one cent.
(n) Effective the first day of July, two thousand twenty-one,
the rate of tax imposed under section two of this article shall be
eliminated.
NOTE: The purpose of this bill is to eliminate the Soft Drinks
Tax by approximately $1 million per year in near equal amounts over
a period of 14 years and to authorize the Tax Commissioner, in lieu
of selling tax stamps and crowns, to use an invoice method to
collect the tax imposed.
Strike-throughs indicate language that would be stricken from
the present law, and underscoring indicates new language that would
be added. §11-19-13 is new; therefore, strike-throughs and
underscoring have been omitted.