Source: http://wvlegislature.gov/bill_Status/bills_text.cfm?billdoc=SB100%20INTR.htm&yr=2018&sesstype=RS&i=100
Timestamp: 2020-08-12 09:32:02
Document Index: 341312364

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', '§11', '§151', '§11', '§11', '§11', '§11', '§11', '§11', '§11', '§11', '§11', '§11', '§11', '§11', '§11', '§11', '§11', '§11']

to the Committee on Tax Reform; and then to the Committee on Finance]
A BILL to amend and reenact §11-15-2 of the Code of West Virginia, 1931, as amended; to amend said code by adding thereto a new section, designated §11-15-3d; and to amend and reenact §11-15A-2 and §11-15A-10 of said code, all relating to imposing the consumers sales and service tax and the use tax on digital goods, digital products and digital services as of a specified date; defining terms; establishing what is subject to the tax and what is exempted; requiring the sales of taxable digital code and digital products to be subject to certain transaction sourcing rules in current code; and clarifying the calculation for remittance of the use tax.
(a) General. When used in this article and §11-15A-1 et seq. of this code, words defined in subsection (b) of this section have the meanings ascribed to them in this section, except in those instances where a different meaning is provided in this article or the context in which the word is used clearly indicates that a different meaning is intended by the Legislature.
(4) “Digital code” has the same meaning as in §11-15-3d of this code;
(5) “Digital products” has the same meaning as in §11-15-3d of this code;
(i) Tangible personal property, custom software, digital code, digital products, or services, including equipment, machinery, apparatus, supplies, fuel and power and appliances, which are used immediately in production or generation activities and equipment, machinery, supplies, tools and repair parts used to keep in operation exempt production or generation devices. For purposes of this subsection, production or generation activities shall commence from the intake, receipt or storage of raw materials at the production plant site;
(ii) Tangible personal property, custom software, digital code, digital products, or services, including equipment, machinery, apparatus, supplies, fuel and power, appliances, pipes, wires and mains, which are used immediately in the transmission or distribution of gas, water and electricity to the public, and equipment, machinery, tools, repair parts and supplies used to keep in operation exempt transmission or distribution devices, and these vehicles and their equipment as are specifically designed and equipped for those purposes are exempt from the tax when used to keep a transmission or distribution system in operation or repair. For purposes of this subsection, transmission or distribution activities shall commence from the close of production at a production plant or wellhead when a product is ready for transmission or distribution to the public and shall conclude at the point where the product is received by the public;
(6) (8) "Gas storage" means the injection of gas into a storage reservoir or the storage of gas for any period of time in a storage reservoir or the withdrawal of gas from a storage reservoir engaged in by businesses subject to the business and occupation tax imposed by §11-13-2 and §11-13-2e of this code.
(7) (9) "Generating or producing or selling of electric power" means the generation, production or sale of electric power engaged in by businesses subject to the business and occupation tax imposed by §11-13-2, §11-13-2d, §11-13-2m or §11-13-2n of this code.
(15) (17) "Providing a public service or the operating of a utility business" means the providing of a public service or the operating of a utility by businesses subject to the business and occupation tax imposed by §11-13-2 and §11-13-2d of this code.
(17) (19) "Sale", "sales" or "selling" includes any transfer of the possession or ownership of tangible personal property, digital code, digital products, or custom software for a consideration, including a lease or rental, when the transfer or delivery is made in the ordinary course of the transferor's business and is made to the transferee or his or her agent for consumption or use or any other purpose. "Sale" also includes the furnishing of a service for consideration. Notwithstanding anything to the contrary in this code, effective after June 30, 2008, "sale" also includes the furnishing of prepaid wireless calling service for consideration.
(19) (21) "Streamlined Sales and Use Tax Agreement" or "agreement", when used in this article, has the same meaning as when used in §11‑15B‑1 et seq. of this code, except when the context in which the word "agreement" is used clearly indicates that a different meaning is intended by the Legislature.
(20) (22) "Tax" includes all taxes, additions to tax, interest and penalties levied under this article or §11‑10‑1 et seq. of this code.
(22) (24) "Taxpayer" means any person liable for the tax imposed by this article or additions to tax, penalties and interest imposed by §11‑10‑1 et seq. of this code.
(c) Additional definitions. Other terms used in this article are defined in §11‑15B‑1 et seq. of this code, which definitions are incorporated by reference into this article. Additionally, other terms used in this section may be defined in other sections of this article. may define terms primarily used in the section in which the term is defined
§11-15-3d. Imposition of consumers sales tax on sales of digital products, digital code and digital services.
(a) On and after July 1, 2018, sales of digital code, digital products and digital services electronically transferred to the purchaser is subject to the consumers sales and service tax imposed by this article, except as otherwise provided in this article, and the use of digital code, digital products and digital services electronically transferred to the purchaser is subject to the use tax imposed by §11‑15A‑1 et seq. of this code, except as otherwise provided in article fifteen-a of this chapter. The tax imposed by this article shall apply to sales of digital code, digital products and digital services electronically transferred to the purchaser regardless of whether the digital code, digital product or digital service is provided for permanent use or less than permanent use and regardless of whether continued payment is required.
(4) “Digital automated service” means any service transferred electronically that uses one or more software applications that would be taxable if the results of the service were transferred on a tangible medium, but it does not include:
(A) Any service that primarily involves the application of human effort by the seller, and the human effort originated after the customer requested the service;
(B) The loaning or transferring of money or the purchase, sale, or transfer of financial instruments. For purposes of this section, "financial instruments" include cash, accounts receivable and payable, loans and notes receivable and payable, debt securities, equity securities, as well as derivative contracts such as forward contracts, swap contracts, and options;
(C) Dispensing cash or other physical items from a machine;
(D) Payment processing services;
(E) Telecommunications services and ancillary services as those terms are defined in §11‑15B‑1 et seq. of this code; or
(F) The Internet and Internet access.
(7) “Digital goods” means sounds, images, data, facts, or information, or any combination thereof, transferred electronically, including, but not limited to, designated digital products and other products transferred electronically not included within the definition of designated digital products. However, the term " digital goods " does not include:
(A) Telecommunications services and ancillary services as those terms are defined in §11‑15B‑1 et seq. of this code;
(B) Computer software as defined in §11‑15B‑1 et seq. of this code; or
(C) The Internet and Internet access service as those terms are defined the Internet Tax Freedom Act, Title 47, U.S.C. §151 note, as existing on July 1, 2009.
(c) The sales of digital code and digital products on which tax is imposed by this section is subject to the transaction sourcing rules in §11‑15B‑1 et seq. of this code.
(a) 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 §11‑15B‑1 et seq. of this code, at the rate of six percent of the purchase price of the property, digital code, digital product or taxable services, except as otherwise provided in this article.
(c) "Taxable services," for the purposes of this article, means services of the nature that are subject to the tax imposed by §11‑15‑1 et seq. of this code. In this article, wherever the words "tangible personal property" or "property" appear, the same shall include the words "or taxable services," where the context so requires.
(d) Use tax is hereby imposed upon every person using tangible personal property, digital code, digital products, custom software, digital services or other taxable service within this state. That person's liability is not extinguished until the tax has been paid. A receipt with the tax separately stated thereon issued by a retailer engaged in business in this state, or by a foreign retailer who is authorized by the Tax Commissioner to collect the tax imposed by this article, relieves the purchaser from further liability for the tax to which the receipt refers.
(e) Purchases of tangible personal property, digital code, digital products, digital services or other taxable services made for the government of the United States or any of its agencies by ultimate consumers is subject to the tax imposed by this section. Industrial materials and equipment owned by the federal government within the State of West Virginia of a character not ordinarily readily obtainable within the state, is not subject to use tax when sold, if the industrial materials and equipment would not be subject to use taxes if sold outside of the state for use in West Virginia.
(a) Each retailer required or authorized, pursuant to §11-15A-6. §11-15A-6a or §11-15A‑7 of this code, or pursuant to §11-15B-1 et seq. of this code, to collect the tax imposed in §11‑15A‑2 of this code is required to pay to the Tax Commissioner the amount of the tax on or before the twentieth day of the month next succeeding each calendar month, except as otherwise provided in this article or §11‑15B‑1 et seq. of this code.
(b) Each certified service provider for a Model I seller shall pay to the Tax Commissioner the tax levied by this article on or before the twentieth day of the month next succeeding the calendar month in which the tax accrued, except as otherwise provided in this article or §11‑15B‑1 et seq. of this code.
(c) At that time, each retailer, seller or certified service provider shall file with the Tax Commissioner a return for the preceding monthly period, except as otherwise provided in this article or §11‑15B‑1 et seq. of this code, in the form prescribed by the Tax Commissioner showing the sales price of any or all tangible personal property, custom software and taxable services sold by the retailer or seller during the preceding quarterly period, the use of which is subject to the tax imposed by this article, and any other information the Tax Commissioner may consider necessary for the proper administration of this article. The return shall be accompanied by a remittance of the amount of the tax, for the period covered by the return, except as otherwise provided in this article or §11‑15B‑1 et seq. of this code: Provided, That where the tangible personal property, digital code, digital products or custom software is sold under a conditional sales contract, or under any other form of sale wherein the payment of the principal sum, or a part of the sum is extended over a period longer than sixty days from the date of the sale, the retailer may collect and remit each monthly period that portion of the tax equal to six percent of that portion of the purchase price actually received during the monthly period: Provided, That beginning July 1, 2018, the tax to be remitted shall be determined by multiplying the portion of the purchase price actually received during the monthly period by the general consumers sales and service tax rate specified in §11-15-3 of this code.
(e) Returns shall be signed by the retailer or seller or his or her duly authorized agent, and must be certified by him or her to be correct, except as otherwise provided in this article or §11‑15B‑1 et seq. of this code.
(1) For calendar years beginning after December 31, 2002, taxpayers Taxpayers whose average monthly payment of the taxes levied by this article and §11‑15‑1 et seq. of this code during the previous calendar year exceeds $100,000, shall remit the tax attributable to the first fifteen days of June each year on or before June 20 of said month.
(2) For purposes of complying with subdivision (1) of this subsection, the taxpayer shall remit an amount equal to the amount of tax imposed by this article and §11‑15‑1 et seq. of this code on actual taxable sales of tangible personal property and custom software and sales of taxable services during the first fifteen days of June or, at the taxpayer's election, taxpayer may remit an amount equal to fifty percent of taxpayer's liability for tax under this article on taxable sales of tangible personal property and custom software and sales of taxable services made during the preceding month of May.
NOTE: The purpose of this bill is to level the playing field between local brick and mortar retailers in West Virginia and online retailers of digital goods, digital code, and digital services. The bill imposes the consumers sales and service tax and the use tax on digital goods, digital products and digital services as of a specified date. The bill defines terms. The bill establishes what is subject to the tax and what is exempted. The bill requires the sales of taxable digital code and digital products to be subject to certain transaction.