Bill Text: WV HB4055 | 2020 | Regular Session | Introduced
Bill Title: Allowing Class IV municipalities to receive proceeds on the purchase of liquor from retail licensees
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2020-01-08 - To House Political Subdivisions [HB4055 Detail]
Download: West_Virginia-2020-HB4055-Introduced.html
WEST virginia legislature
2020 regular session
Introduced
House Bill 4055
By Delegate Kump
[Introduced January 08, 2020; Referred to the Committee on Political Subdivisions then Finance]
A BILL to amend and reenact §60-3-9d of the Code of West Virginia, 1931, as amended; and to amend and reenact §60-3A-21 of said code, all relating to allowing Class IV municipalities to receive proceeds from taxes on the purchase of liquor from retail licensees and on the purchase of intoxicating liquor from state stores or other agencies of the Alcohol Beverage Control Commissioner that are outside of but within one mile of the corporate limits of the Class IV municipalities.
Be it enacted by the Legislature of West Virginia:
ARTICLE 3. SALES BY COMMISSIONER.
§60-3-9d. Tax on purchases of intoxicating liquors inside and outside corporate limits of municipalities.
(a)(1) For the purpose of
providing financial assistance to and for the use and benefit of the various
counties and municipalities of this state, there is hereby levied a tax upon
all purchases of intoxicating liquor from state stores or other agencies of the
Alcohol Beverage Control Commissioner, of wine from any person licensed to sell
wine at retail under the provisions of §60-8-1 et seq. of this code, and
of wine from distributors licensed to sell or distribute wine under the
provisions of §60-8-1 et seq. of this code. The tax shall be five
percent of the purchase price and shall be added to and collected with the
purchase price by the commissioner, by the person licensed to sell wine at
retail, or by the distributor licensed to sell or distribute wine, as the case
may be: Provided, That the tax may not be collected on the intoxicating
liquors sold by or purchased from holders of a license issued under the
provisions of §60-7-1 et seq. of this code: Provided, however,
That the tax may not be collected on purchases of intoxicating liquors or wine
in the original sealed package for the purpose of resale in the original sealed
package if the final purchase of such intoxicating liquors or wine is subject
to the tax imposed under this section, under §8-13-7 of this code, or under
§60-3A-21 of this code. This section may does not be
interpreted to authorize a purchase for resale exemption in contravention
of §11-15-9a of this code. For purposes of this article, the term “original
sealed package” means an original sealed package as defined in §8-13-7 of this
code.
(2) (A) All such tax
collected within one mile of the corporate limits of any municipality within
the state shall be remitted to such municipality; all other tax collected shall
be remitted to the county in which it was collected: Provided, That
where the corporate limits of more than one municipality is within one mile of
the place of collection of such tax, all such tax collected shall be divided
equally among each of said municipalities: Provided, however, That such
mile is measured by the most direct hard surface road or access way usually and
customarily used as ingress and egress to the place of tax collection
(B) Effective January 1,
2019 (A) Except as provided in
paragraph (B) of this subdivision, all such tax collected on sales sourced
within the corporate limits of any municipality within the state shall be
remitted to that municipality. All such tax collected on sales sourced outside
the corporate limits of any municipality shall be remitted to the county in
which the sale is sourced.
(B) Effective January 1, 2021 in addition to the tax collected on sales sourced within the corporate limits of a Class IV municipality, the tax collected outside of but within one mile of the corporate limits of a Class IV municipality shall also be remitted to that municipality. Where the corporate limits of more than one Class IV municipality is within one mile of the place of collection of the tax, all the tax collected shall be divided equally among each of the Class IV municipalities. The mile shall be measured by the most direct hard surface road or access way usually and customarily used as ingress and egress to the place of tax collection.
(C) When determining whether the tax is collected within the corporate limits of any municipality, a seller shall use the sourcing rules provided in §11-15B-1 et seq. of this code.
(3) Rulemaking. — (A) The Tax Commissioner shall propose rules for promulgation in accordance with the requirements of §29A-3-1 et seq. of this code to provide for the collection of the tax required by this section. The Tax Commissioner may promulgate emergency rules in accordance with §29A-3-15 of this code, as necessary, to carry out the requirements of this section.
(B) The West Virginia Alcohol Beverage Control Commissioner may propose rules for promulgation in accordance with the requirements of §29A-3-1 et seq. of this code to provide for the collection of the tax required by this section. The West Virginia Alcohol Beverage Control Commissioner may promulgate emergency rules in accordance with §29A-3-15 of this code, as necessary, to carry out the requirements of this section.
(b) For purposes of this section, terms have the same meaning as provided in §8-13-7(b) of this code.
ARTICLE 3A. SALES BY RETAIL LIQUOR LICENSEES.
§60-3A-21. Tax on purchases of liquor.
(a) For the purpose of providing financial assistance to and for the use and benefit of the various counties and municipalities of this state, there is hereby levied tax upon all purchases of liquor from retail licensees. The tax shall be five percent of the purchase price and shall be added to and collected with the purchase price by the retail licensee.
(b) (1) All such tax
collected within the corporate limits of a municipality in this state shall be
remitted to such municipality; all such tax collected outside of but within one
mile of the corporate limits of any municipality shall be remitted to such
municipality; and all other tax so collected shall be remitted to the county in
which it was collected: Provided, That where the corporate limits of
more than one municipality is within one mile of the place of collection of
such tax, all such tax collected shall be divided equally among each of such
municipalities: Provided, however, That such mile is measured by the
most direct hard surface road or access way usually and customarily used as
ingress and egress to the place of tax collection
(2) Effective January 1,
2019 (1) Except as provided in
subdivision (2) of this subsection, all such tax collected on sales sourced
within the corporate limits of any municipality within the state shall be
remitted to that municipality. All such tax collected on sales sourced outside
the corporate limits of any municipality shall be remitted to the county in which
the sale is sourced.
(2) Effective January 1, 2021, in addition to tax collected on sales sourced within the corporate limits of a Class IV municipality, the tax collected outside of but within one mile of the corporate limits of a Class IV municipality shall also be remitted to that municipality. Where the corporate limits of more than one Class IV municipality is within one mile of the place of collection of the tax, all the tax collected shall be divided equally among each of the Class IV municipalities. The mile shall be measured by the most direct hard surface road or access way usually and customarily used as ingress and egress to the place of tax collection.
(3) When determining whether the tax is collected on sales within the corporate limits of any municipality, a seller shall use the sourcing rules provided in §11-15B-1 et seq. of this code.
(c) The Tax Commissioner, by appropriate rule promulgated pursuant to §29A-3-1 et seq. of this code, shall provide for the collection of such tax upon all purchases from retail licensees, separation or proration of the same, and distribution thereof to the respective counties and municipalities for which the same shall be collected. Such rule shall provide that all such taxes shall be deposited with the state Treasurer and distributed quarterly by the state Treasurer upon warrants of the Auditor payable to the counties and municipalities.
NOTE: The purpose of this bill is to allow Class IV municipalities to receive proceeds from taxes on the purchase of liquor from retail licensees and on the purchase of intoxicating liquor from state stores or other agencies of the Alcohol Beverage Control Commissioner that are outside of but within one mile of the corporate limits of the Class IV municipalities.
Strike-throughs indicate language that would be stricken from a heading or the present law, and underscoring indicates new language that would be added.
