Source: http://www.legis.state.wv.us/Bill_Status/bills_text.cfm?billdoc=HB2704%20SUB.htm&yr=2016&sesstype=RS&i=2704
Timestamp: 2017-08-20 23:16:44
Document Index: 664957498

Matched Legal Cases: ['§11', '§11', '§11', '§11', '§11', '§11', '§11', '§11', '§11', '§11', '§11', '§11', '§11', '§11', '§11', '§11', '§11', '§11', '§11', '§11', '§11', '§11', '§11']

By DELEGATE MORGAN
A BILL to amend and reenact §11-15-2, §11-15-3, §11-15-7a, §11-15-8, §11-15-8a and §11-15-9h of the Code of West Virginia, 1931, as amended; to amend said code by adding three new sections thereto, designated §11-15-8e, §11-15-8f and §11-15-9o; and to amend and reenact §11-15A-2 of said code, all relating to consumer sales and service taxes and use taxes generally; including certain activities within definition of contracting; including contracting and certain payments within definition of “service” and “selected service”; reducing rate of consumer sales and service taxes and conditioning reductions on certain events; removing reduced taxation of certain sales of mobile homes; removing exception for the imposition of tax on the value of labor relating to manufacture, sale or installation of modular dwellings; removing exemption from tax for certain professional services; removing the exception to application of tax contracting services; removing exemptions from tax for selected advertising services, certain memberships or services provided by certain health and fitness organizations, certain sales of computer hardware or software, electronic data processing services and products transferred electronically; reducing rate of use taxes and conditioning reductions on certain events; specifying effective dates; providing for emergency and legislative rules; and naming the act the West Virginia Tax Decrease Act of 2016.
That §11-15-2, §11-15-3, §11-15-7a, §11-15-8, §11-15-8a of the Code of West Virginia, 1931, as amended, be amended and reenacted; that said code be amended by adding three new sections thereto, designated §11-15-8e, §11-15-8f and §11-15-9o; and that §11-15A-2 of said code be amended and reenacted, all to read as follows:
(vii) Contracting does not include the furnishing of work, or both materials and work, in the nature of hookup, connection, installation or other services if the service is incidental to the retail sale of tangible personal property from the service provider's inventory: Provided, : Provided, That on and after January 1, 2017, contracting does include the furnishing of work, or both materials and work, in the nature of hookup, connection, installation or other services if the service is incidental to the retail sale of tangible personal property from the service provider's inventory: Provided, however, That That the hookup, connection or installation of the foregoing is incidental to the sale of the same and performed by the seller thereof or performed in accordance with arrangements made by the seller thereof. Examples of transactions that are excluded from the definition of contracting pursuant to this subdivision prior to January 1, 2017,and that are included in the definition of contracting on and after January 1, 2017, include, but are not limited to, the sale of wall-to-wall carpeting and the installation of wall-to-wall carpeting, the sale, hookup and connection of mobile homes, window air conditioning units, dishwashers, clothing washing machines or dryers, other household appliances, drapery rods, window shades, venetian blinds, canvas awnings, free-standing industrial or commercial equipment and other similar items of tangible personal property. Repairs made to the foregoing are within the definition of contracting if the repairs involve permanently affixing to or improving real property or something attached thereto which extends the life of the real property or something affixed thereto or allows or intends to allow the real property or thing permanently attached thereto to remain in service for a year or longer; and
(18) "Service" or "selected service" includes all nonprofessional activities engaged in for other persons for a consideration, which involve the rendering of a service as distinguished from the sale of tangible personal property or custom software, but does not include contracting, personal services or the services rendered by an employee to his or her employer or any service rendered for resale: Provided, That the term "service" or "selected service" does not include payments received by a vendor of tangible personal property as an incentive to sell a greater volume of such tangible personal property under a manufacturer's, distributor's or other third party's marketing support program, sales incentive program, cooperative advertising agreement or similar type of program or agreement, and these payments are not considered to be payments for a "service" or "selected service" rendered, even though the vendor may engage in attendant or ancillary activities associated with the sales of tangible personal property as required under the programs or agreements: Provided, however, That on and after January 1, 2017, "service" or "selected service" includes contracting and includes payments received by a vendor of tangible personal property as an incentive to sell a greater volume of such tangible personal property under a manufacturer's, distributor's or other third party's marketing support program, sales incentive program, cooperative advertising agreement or similar type of program or agreement, and these payments are considered to be payments for a "service" or "selected service" rendered, even where the vendor may engage in attendant or ancillary activities associated with the sales of tangible personal property as required under the programs or agreements.
(a) Vendor to collect. -– For the privilege of selling tangible personal property or custom software and for the privilege of furnishing certain selected services defined in sections two and eight of this article, the vendor shall collect from the purchaser the tax as provided under this article and article fifteen-b of this chapter, and shall pay the amount of tax to the Tax Commissioner in accordance with the provisions of this article or article fifteen-b of this chapter.
(b) Amount of tax. – (1) Except as otherwise provided under this subsection, the The general consumer sales and service tax imposed by this article shall be at the rate of 6¢ on the dollar of sales or services, excluding gasoline and special fuel sales, which remain taxable at the rate of 5¢ on the dollar of sales.
(2) After December 31, 2016, the general consumer sales and service tax imposed by this article shall be at the rate of 5.50 cents on the dollar of sales or services, excluding gasoline and special fuel sales, which remain taxable at the rate of 5¢ on the dollar of sales.
(3) After December 31, 2017, the general consumer sales and service tax imposed by this article shall be at the rate of 5.25 cents on the dollar of sales or services, excluding gasoline and special fuel sales, which remain taxable at the rate of 5¢ on the dollar of sales: Provided, That the reduction in tax authorized by this subdivision shall be suspended if the combined balance of funds as of June 30, 2017, in the Revenue Fund Shortfall Reserve Fund and the Revenue Fund Shortfall Reserve Fund ‑ Part B established in section twenty, article two, chapter eleven‑b of this code does not equal or exceed fifteen percent of the General Revenue Fund budgeted for the fiscal year commencing July 1, 2016: Provided, however, That the rate reduction schedule will resume in the calendar year immediately following any subsequent fiscal year when the combined balance of funds as of June 30 of that fiscal year in the Revenue Fund Shortfall Reserve Fund and the Revenue Fund Shortfall Reserve Fund ‑ Part B next equals or exceeds fifteen percent of the General Revenue Fund budgeted for the immediately succeeding fiscal year.
(4) After December 31, 2018, the general consumer sales and service tax imposed by this article shall be at the rate of five cents on the dollar of sales or services, excluding gasoline and special fuel sales, which remain taxable at the rate of 5¢ on the dollar of sales: Provided, That the reduction in tax authorized by this subdivision shall be suspended for one calendar year subsequent to the occurrence of the suspension of the reduction in tax authorized by subdivision (3) of this section: Provided, however, That the reduction in tax on the first day of any calendar year authorized by this subsection shall be suspended if the combined balance of funds as of June 30 of the preceding year in the Revenue Fund Shortfall Reserve Fund and the Revenue Fund Shortfall Reserve Fund ‑ Part B established in section twenty, article two, chapter eleven‑b of this code does not equal or exceed fifteen percent of the General Revenue Fund budgeted for the fiscal year commencing July 1, of the preceding year.
(5) After December 31, 2019, the general consumer sales and service tax imposed by this article shall be at the rate of 4.75 cents on the dollar of sales or services: Provided, That the reduction in tax authorized by this subdivision shall be suspended for one calendar year subsequent to the occurrence of the suspension of the reduction in tax authorized by subdivision (4) of this section: Provided, however, That the reduction in tax on the first day of any calendar year authorized by this subsection shall be suspended if the combined balance of funds as of June 30 of the preceding year in the Revenue Fund Shortfall Reserve Fund and the Revenue Fund Shortfall Reserve Fund ‑ Part B established in section twenty, article two, chapter eleven‑b of this code does not equal or exceed fifteen percent of the General Revenue Fund budgeted for the fiscal year commencing July 1, of the preceding year.
(6) The Tax Commissioner may provide for the administration of the provisions of the amendments to this section enacted in 2016 by emergency rule pending the promulgation of legislative rules for that purpose under chapter twenty-nine-a of this code.
(c) Calculation tax on fractional parts of a dollar until January 1, 2004. -– There shall be no tax on sales where the monetary consideration is 5¢ or less. The amount of the tax shall be computed as follows:
(d) (c) Calculation of tax on fractional parts of a dollar after December 31, 2003. -– Beginning January 1, 2004, the tax computation under subsection (b) of this section shall be carried to the third decimal place, and the tax rounded up to the next whole cent whenever the third decimal place is greater than four and rounded down to the lower whole cent whenever the third decimal place is four or less. The vendor may elect to compute the tax due on a transaction on a per item basis or on an invoice basis provided the method used is consistently used during the reporting period.
(e) (d) No aggregation of separate sales transactions, exception for coin-operated devices. -– Separate sales, such as daily or weekly deliveries, shall not be aggregated for the purpose of computation of the tax even though the sales are aggregated in the billing or payment therefor. Notwithstanding any other provision of this article, coin-operated amusement and vending machine sales shall be aggregated for the purpose of computation of this tax.
(f)(e) Rate of tax on certain mobile homes. -– Notwithstanding any provision of this article to the contrary, after December 31, 2003, the tax levied on sales of mobile homes to be used by the owner thereof as his or her principal year-round residence and dwelling shall be an amount equal to six percent of fifty percent of the sales price: Provided, That after December 31, 2016, the tax levied on sales of mobile homes to be used by the owner thereof as his or her principal year-round residence and dwelling shall be an amount equal to the rate established in subsection (b) of this section.
(g) (f) Construction; custom software. -– After December 31, 2003, whenever the words “tangible personal property” or “property” appear in this article, the same shall also include the words “custom software”.
(h) (g) Computation of tax on sales of gasoline and special fuel. -– The method of computation of tax provided in this section does not apply to sales of gasoline and special fuel.
(h) This act shall be known as the West Virginia Tax Decrease Act of 2016.
(a) Notwithstanding the provisions of section seven of this article, persons engaged in the manufacture and sale or the manufacture, sale and installation of a modular dwelling shall pay the tax imposed by this article only on the value of the building supplies and materials used in the manufacture and installation of the modular dwelling and the preparation of the site for permanent installation, and not on the labor involved in such activities: Provided, That after December 31, 2016, persons engaged in the manufacture and sale or the manufacture, sale and installation of a modular dwelling shall pay the tax imposed by this article on the labor involved in such activities. For purposes of this section, the value of the building supplies and materials shall be the actual cost of the building supplies and materials. If the manufacturer asserts an exemption at the time of purchase of the building supplies and materials, the manufacturer shall remit the tax due on the value of the building supplies and materials used in the manufacture of the modular dwelling at the time of sale of the modular dwelling. If the manufacturer pays the tax at the time of purchase of the building supplies and materials, the manufacturer is responsible for maintaining records evidencing payment of the tax. Failure to maintain such records will result in the tax being assessed to the manufacturer.
(b) Persons engaged in the sale and installation of a modular dwelling shall pay the tax imposed by this article on only the value of the materials used in the manufacture and installation of the modular dwelling and the preparation of the site for permanent installation, and not on the labor involved in such activities: Provided, That after December 31, 2016, persons engaged in the manufacture and sale or the manufacture, sale and installation of a modular dwelling shall pay the tax imposed by this article on the labor involved in such activities. For purposes of this section, the value of the materials used in the manufacture of the modular dwelling shall be the actual cost of the materials and building supplies to the manufacturer as delineated on the invoice to the purchaser. If the actual cost of the materials is not available, then the cost of the materials used in the manufacture of the modular dwelling shall be sixty percent of the total cost of the modular dwelling. A credit will be given to the purchaser for any sales or use tax that has been lawfully imposed by another state and paid by the manufacturer on the purchase of building supplies and materials used in the manufacture of the modular dwelling. If the manufacturer pays the tax at the time of purchase of the building supplies and materials, the manufacturer is responsible for maintaining records evidencing payment of the tax and delineating this amount on the invoice. Failure to maintain such records will result in the credit being denied.
'11-15-8. Furnishing of services included; exceptions.
(a) Except as provided in subsection (b) of this section, The the provisions of this article apply not only to selling tangible personal property and custom software, but also to the furnishing of all services, except professional and personal services, and except those services furnished by businesses subject to the control of the Public Service Commission when the service or the manner in which it is delivered is subject to regulation by the Public Service Commission.
(2) Notwithstanding any other provision of this section to the contrary, on and after January 1, 2017, the consumers sales and service tax imposed by this article and the use tax imposed by article fifteen-a of this chapter a shall apply to the furnishing of professional services rendered by lawyers, certified public accountants, public accountants, architects, professional engineers and veterinarians. In addition, services for which a professional license is required and which are provided by corporations, regardless of whether such corporations are professional or business are subject to the consumers sales and service tax imposed by this article and the use tax imposed by article fifteen-a of this chapter. The Tax Commissioner may provide for the administration of the provisions of this subdivision by emergency rule pending the promulgation of legislative rules for that purpose under chapter twenty-nine-a of this code.
§11‑15‑8a. Contractors.
(a) The provisions of this article shall not apply to contracting services. However, purchases by a contractor of tangible personal property or taxable services for use or consumption in the providing of a contracting service shall be taxable beginning March 1, 1989, except as otherwise provided in this article: Provided, That after December 31, 2016, the provisions of this article apply to contracting services .
(b) Transition rules until January 1, 2017. ‑‑ The exemption from payment of tax on purchases of tangible personal property or taxable services directly used or consumed in the activity of contracting, as defined in section two of this article, which expires as of March 1, 1989, shall nevertheless remain in effect with respect to:
(c) Renewals and extensions. ‑‑ A renewal of any contract shall constitute a new contract for purposes of this section, and the date of entry into a contract renewal by the parties, the date or dates of tender of consideration and the time of performance of any contractual obligations under a renewed contract shall be treated as the dates for determining application of this section to the renewed contract. Extensions of time granted or agreed upon by the parties to a contract for performance of the contract or for tender of consideration under the contract shall not be treated as contract renewals. Contracts to which such extensions apply shall be treated under these transition rules as if the original contractual provisions for performance and tender of consideration remain in effect.
(d) Definitions. ‑‑ For purposes of this section:
(1) The term "contract" or "contracts" means written agreements reciting or setting forth a fixed price consideration or a consideration based upon cost plus a stated percentage or a stated monetary increment. This term shall not mean or include ongoing sales contracts, contracts whereby any element of the consideration or the property or services sold or to be rendered in performance of the contract are undefined, or determined, as to either nature or quantity, subsequent to the making of the contract, or any open‑ended contract.
§11-15-8e. Furnishing of selected advertising services included.
Notwithstanding the provisions of subdivision (12), section nine of this article to the contrary, on and after January 1, 2017, the consumers sales and service tax imposed by this article and the use tax imposed by article fifteen-a of this chapter shall apply to sales of radio and television broadcasting time, preprinted advertising circulars and newspaper and outdoor advertising space for the advertisement of goods or services by means of advertising that is broadcast from, printed at, or distributed from, a location in this State if the advertising is primarily intended to be disseminated to consumers located in this State and is only secondarily or incidentally disseminated to bordering jurisdictions. For purposes of this section, advertising which is broadcast from a radio or television station located in this State or is printed in or distributed by a newspaper published in this State is rebuttably presumed to be primarily intended for dissemination to consumers located in this State. The Tax Commissioner may provide for the administration of the provisions of this section by emergency rule pending the promulgation of legislative rules for that purpose under chapter twenty-nine-a of this code.
§11-15-8f. Charges for memberships or services provided by health and fitness organizations relating to personalized fitness programs included; exceptions.
Notwithstanding the provisions of subdivision (34), section nine of this article to the contrary, on and after January 1, 2017, except for sales of taxable services described under section eleven of this article, the consumers sales and service tax imposed by this article and the use tax imposed by article fifteen-a of this chapter shall apply to charges for memberships or services provided by health and fitness organizations relating to personalized fitness programs.
(1) Sales of computer hardware or software (including custom designed software) to be directly incorporated by a manufacturer into a manufactured product. For purposes of this subsection, the payment of licensing fees for the right to incorporate hardware or software developed by persons other than the manufacturer into a manufactured product is exempt from the tax imposed by this article: Provided, That the exemption provided by this subdivision is terminated on and after January 1, 2017;
(2) Sales of computer hardware or software (including custom designed software) directly used in communication as defined in this article: Provided, That the exemption provided by this subdivision is terminated on and after January 1, 2017;
(3) Sales of electronic data processing services: Provided, That the exemption provided by this subdivision is terminated on and after January 1, 2017;
§11-15-9o. Sales or use tax on products transferred electronically.
The tax imposed under this article and the tax imposed under article fifteen-a are each hereby imposed separately on products transferred electronically. For purposes of this section, the term “transferred electronically” means obtained by the purchaser by means other than tangible storage media. The Tax Commissioner may provide for the administration of the provisions of this subdivision by emergency rule pending the promulgation of legislative rules for that purpose under chapter twenty-nine-a of this code.
(a) (1) Except as otherwise provided under this subsection, an An excise tax is hereby levied and imposed on the use in this state of tangible personal property, custom software or taxable services, to be collected and paid as provided in this article or article fifteen-b of this chapter, at the rate of six percent of the purchase price of the property or taxable services, except as otherwise provided in this article.
(2) After December 31, 2016, an excise tax is hereby levied and imposed on the use in this state of tangible personal property, custom software or taxable services, to be collected and paid as provided in this article or article fifteen-b of this chapter, at the rate of 5.50 percent of the purchase price of the property or taxable services, except as otherwise provided in this article.
(3) After December 31, 2017, an excise tax is hereby levied and imposed on the use in this state of tangible personal property, custom software or taxable services, to be collected and paid as provided in this article or article fifteen-b of this chapter, at the rate of 5.25 percent of the purchase price of the property or taxable services, except as otherwise provided in this article: Provided, That the reduction in tax authorized by this subdivision shall be suspended if the combined balance of funds as of June 30, 2017, in the Revenue Fund Shortfall Reserve Fund and the Revenue Fund Shortfall Reserve Fund ‑ Part B established in section twenty, article two, chapter eleven‑b of this code does not equal or exceed fifteen percent of the General Revenue Fund budgeted for the fiscal year commencing July 1, 2016: Provided, however, That the rate reduction schedule will resume in the calendar year immediately following any subsequent fiscal year when the combined balance of funds as of June 30 of that fiscal year in the Revenue Fund Shortfall Reserve Fund and the Revenue Fund Shortfall Reserve Fund ‑ Part B next equals or exceeds fifteen percent of the General Revenue Fund budgeted for the immediately succeeding fiscal year.
(4) After December 31, 2018, an excise tax is hereby levied and imposed on the use in this state of tangible personal property, custom software or taxable services, to be collected and paid as provided in this article or article fifteen-b of this chapter, at the rate of five percent of the purchase price of the property or taxable services, except as otherwise provided in this article: Provided, That the reduction in tax authorized by this subdivision shall be suspended for one calendar year subsequent to the occurrence of the suspension of the reduction in tax authorized by subdivision (3) of this section: Provided, however, That the reduction in tax on the first day of any calendar year authorized by this subsection shall be suspended if the combined balance of funds as of June 30 of the preceding year in the Revenue Fund Shortfall Reserve Fund and the Revenue Fund Shortfall Reserve Fund ‑ Part B established in section twenty, article two, chapter eleven‑b of this code does not equal or exceed fifteen percent of the General Revenue Fund budgeted for the fiscal year commencing July 1, of the preceding year.
(5) After December 31, 2019, an excise tax is hereby levied and imposed on the use in this state of tangible personal property, custom software or taxable services, to be collected and paid as provided in this article or article fifteen-b of this chapter, at the rate of 4.75 percent of the purchase price of the property or taxable services, except as otherwise provided in this article: Provided, That the reduction in tax authorized by this subdivision shall be suspended for one calendar year subsequent to the occurrence of the suspension of the reduction in tax authorized by subdivision (4) of this section: Provided, however, That the reduction in tax on the first day of any calendar year authorized by this subsection shall be suspended if the combined balance of funds as of June 30 of the preceding year in the Revenue Fund Shortfall Reserve Fund and the Revenue Fund Shortfall Reserve Fund ‑ Part B established in section twenty, article two, chapter eleven‑b of this code does not equal or exceed fifteen percent of the General Revenue Fund budgeted for the fiscal year commencing July 1, of the preceding year.