Introduced Version
Senate Bill 497 History
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Key: Green = existing Code. Red = new code to be enacted
Senate Bill No. 497
(By Senator Hunter)
____________
[Introduced March 9, 2005; referred to the Committee
on Finance.]
____________
A BILL to amend the Code of West Virginia, 1931, as amended, by
adding thereto a new article, designated §11-28-1,
§11-28-
2,
§11-28-3,
§11-28-4,
§
11-28-5,
§11-28-6,
§11-28-7,
§11-
28-8,
§11-28-9,
§11-28-10,
§11-28-11,
§11-28-12,
§11-28-13
and
§11-28-14, all
relating to authorizing county
commissions to impose a recreation and amusement tax;
requiring approval by voters; providing legislative
findings; specifying maximum rate of tax; calculation of
tax; taxable events, fees, services and sales; accounting
and reporting by vendor; exempted fees, services and
sales; collection and recordkeeping by county sheriffs;
and dedication of funds.
Be it enacted by the Legislature of West Virginia:
That the Code of West Virginia, 1931, as amended, be
amended by adding thereto a new article, designated §11-28-1,
§11-28-2,
§11-28-3,
§11-28-4,
§
11-28-5,
§11-28-6,
§11-28-7,
§11-28-8,
§11-28-9,
§11-28-10,
§11-28-11,
§11-28-12,
§11-28-13
and
§11-28-14
, all to read as follows:
ARTICLE 28. RECREATION AND AMUSEMENT TAX.
§11-28-1. Legislative findings.
The Legislature finds that the influx of tourists to the
state has caused an undue burden on emergency services for many
counties. Providing emergency services to these visitors
without additional compensation to cover costs and salaries
places financial strain on emergency service providers and on
the citizen taxpayers of each county affected.
Therefore, the Legislature finds that county commissions
should be granted the authority, with the approval of the
majority of the voters of the county, to impose a recreation
and amusement tax on those events, services and sales which
attract tourists to the state. The proceeds from this tax
will alleviate some of the burden which the counties and their
emergency services are experiencing. In addition, collection
of a tax on recreation and amusement events, services and sales
will generate moneys from those who would most benefit.
§11-28-2. Recreation and amusement tax authorized; imposition
by county commission; ratification by majority
of county voters.
Beginning on the first day of July, two thousand five, a county commission may provide by ordinance for the imposition
of a recreation and amusement tax: Provided, That the
ordinance may not become effective until it is ratified by a
majority of the legal votes cast on the ordinance by the
qualified voters of the county at any primary, general or
special election as the county commission directs. Voting on
the ordinance may not take place until after notice of the
ordinance imposing the tax and the purpose of the tax,
including the rate of the tax, the items or services to be
taxed, the expected amount of funds to be collected and the
dedication of the funds collected, has been published as a
Class II legal advertisement in compliance with the provisions
of article three, chapter fifty-nine of this code. The
publication area for the publication is the county in which the
tax will be imposed.
§11-28-3. Rate of tax; computation of tax.
(a) The tax rate may not exceed three cents on the dollar
of sales, services or fees.
(b) There may be no tax imposed on sales, services or fees
where the monetary consideration is five cents or less.
(c) On a tax of one cent on the dollar, the amount of tax
is computed as follows:
(1) On each sale, service or fee where the monetary
consideration is from six cents to one dollar, both inclusive, one cent.
(2) If the sale price is in excess of one dollar, one cent
on each whole dollar of the sale price, and one cent on the
fractional part of the dollar if in excess of fifty-one cents.
(d) On a tax of two cents on the dollar, the amount of tax
is computed as follows:
(1) On each sale, service or fee where the monetary
consideration is from six cents to fifty cents, both inclusive,
one cent.
(2) On each sale, service or fee where the monetary
consideration is from fifty-one cents to one dollar, two cents.
(3) If the sale price is in excess of one dollar, two
cents on each whole dollar of the sale price, and upon any
fractional part of the dollar in excess of whole dollars as
follows: One cent on the fractional part of the dollar if less
than fifty-one cents; and two cents on the fractional part of
the dollar if in excess of fifty cents.
(e) On a tax of three cents on the dollar, the amount of
tax is computed as follows:
(1) On each sale, service or fee where the monetary
consideration is from six cents to thirty-three cents, both
inclusive, one cent.
(2) On each sale, service or fee where the monetary
consideration is from thirty-four cents to sixty-seven cents, two cents.
(3) On each sale, service or fee where the monetary
consideration is from sixty-seven cents to one dollar, three
cents.
(4) If the sale price is in excess of one dollar, three
cents on each whole dollar of the sale price, and upon any
fractional part of the dollar in excess of whole dollars as
follows: One cent on the fractional part of the dollar if less
than thirty-three cents; two cents on the fractional part of
the dollar if in excess of thirty-two cents but less than
sixty-seven cents; and three cents on the fractional part of
the dollar if in excess of sixty-six cents.
§11-28-4. Taxable items.
(a) Any tax imposed under this article may be collected on
the following sales, services or fees, except as provided in
section five of this article:
(1) Admission fees to recreation or amusement events,
including, but not limited to:
(A) Athletic events;
(B) Motor vehicle races or contests;
(C) Motorcycle races or contests;
(D) Theatrical performances or events, including, but not
limited to, movies, plays, lectures and concerts;
(E) Tours and programs at historical or manufacturing sites;
(F) Carnivals or circuses;
(G) Craft, art or antique shows;
(H) Flea markets;
(I) Horse, dog or cat shows;
(J) Rodeos; or
(K) Industrial, manufacturing or retailing shows, at which
exhibitors or participants rent or reserve booths, stalls or
space for the purpose of showcasing products or services;
(2) Sales of alcoholic beverages, as defined in section
five, article one, chapter sixty of this code;
(3) Sales of tobacco products, as defined in section two,
article seventeen, chapter eleven of this code;
(4) Sales at ski and golf (or pro) shops and of skiing and
golfing equipment, including, but not limited to, ski and golf
apparel and accessories;
(5) Rentals at ski or golf (or pro) shops and of skiing or
golfing equipment, including, but not limited to, skis, poles,
boots and bindings, golf clubs and golf carts;
(6) Skiing-related or golfing-related services, including,
but not limited to, ski lift tickets, skiing instruction,
greens fees and golfing lessons;
(7) Sales of white water rafting, canoeing, kayaking,
boating, scuba diving or snorkeling, horseback riding, climbing, hiking and camping apparel, equipment and
accessories;
(8) Rentals of equipment or accessories for white water
rafting, canoeing, kayaking, boating, scuba diving or
snorkeling, horseback riding, climbing, hiking or camping,
biking, including rental of horses, pack animals or other for-
profit entertainment devices;
(9) Admission and rental fees for bowling, miniature golf
and golf driving ranges;
(10) Sales of souvenirs, art and craft items; including
those items locally-produced and those items imported;
(11) Rentals of video tape players, video tape recorders,
video cameras and other cameras;
(12) Rentals of prerecorded video tapes; and
(13) Sales of food prepared for human consumption, sold at
restaurants, delicatessens, fast food establishments and any
business retailing carry-out ready-to-eat foods for immediate
consumption.
(b) For purposes of this section, the term "apparel"
includes wearable items unique to a sport or activity, such as
ski boots, ski bib overalls, golf shoes, hiking boots, life
jackets and wet suits, but does not include clothing which
could be used in other pursuits, such as swim suits, pants,
outer jackets or coats, vests, socks, underwear or clothing which could be designated work clothing such as steel-tipped
safety boots.
§11-28-5. Exemptions.
The following sales, services or fees are exempt from a
tax imposed pursuant to this article:
(1) Rental of lodging, including hotel and motel rooms,
cabins, lodges and condominiums;
(2) Medical or dental services;
(3) Sale of groceries and household items;
(4) Sale of clothing, except as provided in section four
of this article;
(5) Sale of gasoline or diesel fuel;
(6) Sale of motor oil;
(7) Sale or service of utilities, including, but not
limited to, electric, telephone, home heating fuel, gas, water,
sewer and garbage collection;
(8) Sale of prescription or over-the-counter drugs;
(9) Motor vehicle services, including repairs and
maintenance;
(10) Admission fees requested as a voluntary donation or
admission, and except for the sale of food and other items,
fees charged for charity fund-raising events or for not-for-
profit corporation fund-raising events; and
(11) Except for the sale of food and other items
, admission fees assessed for events sponsored by an elementary
or secondary school or by a church
.
§11-28-6. Purchaser to pay; accounting by vendor.
As used in this article, the term "vendor" has the meaning
ascribed to it in section two, article fifteen of this chapter.
The purchaser shall pay to the vendor the amount of tax
levied by this article which shall be added to and constitute
a part of the sales price. It is collectible by the vendor who
shall account to the county sheriff for all tax paid by the
purchaser. The vendor shall keep the amount of tax paid
separate from the proceeds of sale exclusive of the tax unless
authorized in writing by the county commission or the county
sheriff as authorized by the county commission to keep the
amount of tax in a different manner. Where the authorization
is given, the county's claim is enforceable against and shall
take precedence over all other claims against the moneys
commingled.
§11-28-7. Failure to collect tax; liability of vendor.
If a vendor fails to collect the tax imposed by a county
commission pursuant to this article, the vendor is personally
liable for the amount the vendor failed to collect.
§11-28-8. Total amount collected is to be remitted.
No profit may accrue to any person as a result of the
collection of the tax levied pursuant to this article and the total of all taxes collected pursuant to this article shall be
returned and remitted to the sheriff of the county as provided
in this article.
§11-28-9. When separate records of sales required.
Any vendor engaged in a business subject to this tax, who
is at the same time engaged in some other kind of business,
occupation or profession, not taxable under this article, shall
keep records to show separately the transactions used in
determining the tax base taxed pursuant to a tax imposed under
the authority of this article. In the event the vendor fails
to keep separate records there may be levied upon the vendor a
tax based upon the entire gross proceeds of both or all of the
vendor's businesses.
§11-28-10. Tax returns and payments.
(a) Each county commission may prescribe the form to be
used to report the tax collected pursuant to this article. The
county commission shall require that any taxes levied by this
article are due and payable in monthly installments, on or
before the fifteenth day of the month next succeeding the month
in which the tax accrued. The vendor shall, on or before the
fifteenth day of each month, make out and mail to the sheriff
of the county assessing the tax a return, in the form
prescribed by the county commission, showing:
(1) The total gross proceeds of the vendor's business for that month;
(2) The gross proceeds of the vendor's business upon which
the tax is based;
(3) The amount of tax for which the vendor is liable; and
(4) Any further information considered pertinent by the
county commission.
(b) A remittance for the amount of the tax shall accompany
the return.
(c) A county commission may, upon written request,
authorize a vendor whose books and records are not kept on a
monthly basis to file returns at other times.
(d) A county commission may prescribe special forms for
returns from vendors, promoters or sponsors of taxable events,
services or sales which are transitory, seasonal or one-time in
nature.
§11-28-11. Consolidated returns.
A county commission may allow a person operating two or
more places of business of like character from which are made
or dispensed sales or services which are taxable under a tax
imposed pursuant to the authority of this article to file
consolidated returns covering all the sales or services, on
forms as prescribed by the county commission.
§11-28-12. Keeping and preserving records.
The county commission shall require that each vendor remitting taxes pursuant to this section to keep complete and
accurate records of taxable sales and of charges, together with
a record of the tax collected on the sales, and to keep all
invoices, bills of lading and other pertinent documents in the
form the county commission requires. The records and other
documents shall be preserved for a period of time not less than
three years.
§11-28-13. Records of sheriff; preserving returns.
The sheriff of each county imposing a tax pursuant to this
article shall keep full and accurate records of all moneys
received by him or her. He or she shall preserve all returns
filed with him or her for five years.
The sheriff shall keep separate accounts in a permanent
book or in a permanent record on an electronic data processing
system, in the same manner in which records are kept pursuant
to section thirteen, article one, chapter eleven-a of this
code, of all the taxes received and disbursed pursuant to this
article by him or her. Each of the accounts shall be kept so
as to show the total receipts and disbursements up to the close
of business on each day; and in a separate column opposite the
totals the sheriff shall ascertain and note in figures, at the
close of each day's transactions, the balance due from or to
him or her, as the case may be, on account of the funds. The
account book or a printout of the permanent record on the electronic data processing system is subject to inspection at
any time by the Tax Commissioner, members of the county
commission, the clerk of the county commission, the prosecuting
attorney, the mayor or treasurer of any municipality located
within the county.
§11-28-14. Dedication of funds.
Any taxes collected pursuant to this article shall be used
by the county commission for the purpose of funding the
services, equipment and salaries of county emergency services,
including emergency medical services, ambulance services,
paramedics, ambulance drivers, fire departments, firefighters,
rescue squads, hazardous material response teams, sheriff's
deputies, and other emergency services designated by the county
commission and approved by the county's voters.
NOTE: The purpose of this bill is to authorize counties,
subject to the approval of a majority of the county's voters,
to impose a recreation and amusement tax. The tax would be
collected on specific recreation and amusement equipment,
rentals, services and fees at a rate of up to three cents on
the dollar. The sheriff of each county is authorized to
collect the tax. Funds collected pursuant to this tax are
dedicated to the funding of county emergency services.
This article is new; therefore, strike-throughs and
underscoring have been omitted.
.