Bill Text: WV HB2328 | 2018 | Regular Session | Introduced
Bill Title: Exempting Class X vehicles from the tax provisions of this section
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2018-01-10 - To House Roads and Transportation [HB2328 Detail]
Download: West_Virginia-2018-HB2328-Introduced.html
WEST virginia Legislature
2017 regular session
By
[
to the Committee on Roads and Transportation then Finance.
A BILL to amend and
reenact §17A-3-4 of the Code of West Virginia, 1931, as amended, relating to certain
vehicles used in farming; and exempting Class X vehicles from the tax imposed
upon the privilege of effecting the certification of title of a motor vehicle.
Be it enacted by the
Legislature of West Virginia:
That §17A-3-4 of the
Code of West Virginia, 1931, as amended, be amended and reenacted to read as
follows:
ARTICLE 3. ORIGINAL AND
RENEWAL OF REGISTRATION; ISSUANCE OF CERTIFICATES OF TITLE.
§17A-3-4. Application
for certificate of title; fees; abolishing privilege tax; prohibition of
issuance of certificate of title without compliance with consumer sales and
service tax provisions; exceptions.
(a) Certificates of
registration of any vehicle or registration plates for the vehicle, whether
original issues or duplicates, may not be issued or furnished by the Division
of Motor Vehicles or any other officer or agent charged with the duty, unless
the applicant already has received, or at the same time makes application for
and is granted, an official certificate of title of the vehicle in either an
electronic or paper format. The application shall be upon a blank form to be
furnished by the Division of Motor Vehicles and shall contain a full
description of the vehicle, which description shall contain a manufacturer's serial or identification number or other number as
determined by the commissioner and any distinguishing marks, together with a
statement of the applicant's title and of
any liens or encumbrances upon the vehicle, the names and addresses of the
holders of the liens and any other information as the Division of Motor
Vehicles may require. The application shall be signed and sworn to by the
applicant. A duly certified copy of the division's electronic record of a certificate of title is admissible in any
civil, criminal or administrative proceeding in this state as evidence of
ownership.
(b) A tax is imposed upon
the privilege of effecting the certification of title of each vehicle in the
amount equal to five percent of the value of the motor vehicle at the time of
the certification, to be assessed as follows:
(1) If the vehicle is new,
the actual purchase price or consideration to the purchaser of the vehicle is
the value of the vehicle. If the vehicle is a used or secondhand vehicle, the
present market value at time of transfer or purchase is the value of the
vehicle for the purposes of this section: Provided, That so much of the
purchase price or consideration as is represented by the exchange of other
vehicles on which the tax imposed by this section has been paid by the
purchaser shall be deducted from the total actual price or consideration paid
for the vehicle, whether the vehicle be new or secondhand. If the vehicle is
acquired through gift or by any manner whatsoever, unless specifically exempted
in this section, the present market value of the vehicle at the time of the
gift or transfer is the value of the vehicle for the purposes of this section.
(2) No certificate of title
for any vehicle may be issued to any applicant unless the applicant has paid to
the Division of Motor Vehicles the tax imposed by this section which is five
percent of the true and actual value of the vehicle whether the vehicle is
acquired through purchase, by gift or by any other manner whatsoever, except
gifts between husband and wife or between parents and children: Provided,
That the husband or wife, or the parents or children, previously have paid the
tax on the vehicles transferred to the State of West Virginia.
(3) The Division of Motor
Vehicles may issue a certificate of registration and title to an applicant if
the applicant provides sufficient proof to the Division of Motor Vehicles that
the applicant has paid the taxes and fees required by this section to a motor
vehicle dealership that has gone out of business or has filed bankruptcy
proceedings in the United States bankruptcy court and the taxes and fees so
required to be paid by the applicant have not been sent to the division by the
motor vehicle dealership or have been impounded due to the bankruptcy
proceedings: Provided, That the applicant makes an affidavit of the same
and assigns all rights to claims for money the applicant may have against the
motor vehicle dealership to the Division of Motor Vehicles.
(4) The Division of Motor
Vehicles shall issue a certificate of registration and title to an applicant
without payment of the tax imposed by this section if the applicant is a
corporation, partnership or limited liability company transferring the vehicle
to another corporation, partnership or limited liability company when the
entities involved in the transfer are members of the same controlled group and
the transferring entity has previously paid the tax on the vehicle transferred.
For the purposes of this section, control means ownership, directly or
indirectly, of stock or equity interests possessing fifty percent or more of
the total combined voting power of all classes of the stock of a corporation or
equity interests of a partnership or limited liability company entitled to vote
or ownership, directly or indirectly, of stock or equity interests possessing
fifty percent or more of the value of the corporation, partnership or limited
liability company.
(5) The tax imposed by this
section does not apply to vehicles to be registered as Class H, vehicles or
Class M or Class X vehicles, as defined in section one, article ten of
this chapter, which are used or to be used in interstate commerce. Nor does the
tax imposed by this section apply to the titling of Class B vehicles registered
at a gross weight of fifty-five thousand pounds or more, or to the titling of
Class C semitrailers, full trailers, pole trailers and converter gear: Provided,
That if an owner of a vehicle has previously titled the vehicle at a declared
gross weight of fifty-five thousand pounds or more and the title was issued
without the payment of the tax imposed by this section, then before the owner
may obtain registration for the vehicle at a gross weight less than fifty-five
thousand pounds, the owner shall surrender to the commissioner the exempted
registration, the exempted certificate of title and pay the tax imposed by this
section based upon the current market value of the vehicle: Provided,
however, That notwithstanding the provisions of section nine, article
fifteen, chapter eleven of this code, the exemption from tax under this section
for Class B vehicles in excess of fifty-five thousand pounds and Class C
semitrailers, full trailers, pole trailers and converter gear does not subject
the sale or purchase of the vehicles to the consumers sales and service tax.
(6) The tax imposed by this
section does not apply to titling of vehicles leased by residents of West
Virginia. A tax is imposed upon the monthly payments for the lease of any motor
vehicle leased by a resident of West Virginia, which tax is equal to five
percent of the amount of the monthly payment, applied to each payment, and
continuing for the entire term of the initial lease period. The tax shall be
remitted to the Division of Motor Vehicles on a monthly basis by the lessor of
the vehicle.
(7) The tax imposed by this
section does not apply to titling of vehicles by a registered dealer of this
state for resale only, nor does the tax imposed by this section apply to
titling of vehicles by this state or any political subdivision thereof, or by
any volunteer fire department or duly chartered rescue or ambulance squad
organized and incorporated under the laws of this state as a nonprofit
corporation for protection of life or property. The total amount of revenue
collected by reason of this tax shall be paid into the State Road Fund and
expended by the Commissioner of Highways for matching federal funds allocated
for West Virginia. In addition to the tax, there is a charge of $5 for each
original certificate of title or duplicate certificate of title so issued: Provided,
That this state or any political subdivision of this state or any volunteer
fire department or duly chartered rescue squad is exempt from payment of the
charge.
(8) The certificate is good
for the life of the vehicle, so long as the vehicle is owned or held by the
original holder of the certificate and need not be renewed annually, or any
other time, except as provided in this section.
(9) If, by will or direct
inheritance, a person becomes the owner of a motor vehicle and the tax imposed
by this section previously has been paid to the Division of Motor Vehicles on
that vehicle, he or she is not required to pay the tax.
(10) A person who has paid
the tax imposed by this section is not required to pay the tax a second time
for the same motor vehicle, but is required to pay a charge of $5 for the
certificate of retitle of that motor vehicle, except that the tax shall be paid
by the person when the title to the vehicle has been transferred either in this
or another state from the person to another person and transferred back to the
person.
(11) The tax imposed by
this section does not apply to any passenger vehicle offered for rent in the
normal course of business by a daily passenger rental car business as licensed
under the provisions of article six-d of this chapter. For purposes of this
section, a daily passenger car means a Class A motor vehicle having a gross
weight of eight thousand pounds or less and is registered in this state or any
other state. In lieu of the tax imposed by this section, there is hereby
imposed a tax of not less than $1 nor more than $1.50 for each day or part of
the rental period. The commissioner shall propose an emergency rule in
accordance with the provisions of article three, chapter twenty-nine-a of this
code to establish this tax.
(12) The tax imposed by
this article does not apply to the titling of any vehicle purchased by a senior
citizen service organization which is exempt from the payment of income taxes
under the United States Internal Revenue Code, Title 26 U.S.C. §501(c)(3) and
which is recognized to be a bona fide senior citizen service organization by
the senior services bureau existing under the provisions of article five,
chapter sixteen of this code.
(13) The tax imposed by
this section does not apply to the titling of any vehicle operated by an urban
mass transit authority as defined in article twenty-seven, chapter eight of
this code or a nonprofit entity exempt from federal and state income tax under
the Internal Revenue Code and whose purpose is to provide mass transportation
to the public at large designed for the transportation of persons and being
operated for the transportation of persons in the public interest.
(14) The tax imposed by
this section does not apply to the transfer of a title to a vehicle owned and
titled in the name of a resident of this state if the applicant:
(A) Was not a resident of
this state at the time the applicant purchased or otherwise acquired ownership
of the vehicle;
(B) Presents evidence as
the commissioner may require of having titled the vehicle in the applicant's
previous state of residence;
(C) Has relocated to this
state and can present such evidence as the commissioner may require to show
bona-fide residency in this state;
(D) Presents an affidavit,
completed by the assessor of the applicant's county of residence, establishing
that the vehicle has been properly reported and is on record in the office of
the assessor as personal property; and
(E) Makes application to
the division for a title and registration, and pays all other fees required by
this chapter within thirty days of establishing residency in this state as
prescribed in subsection (a), section one-a of this article: Provided,
That a period of amnesty of three months be established by the commissioner
during the calendar year 2007, during which time any resident of this state,
having titled his or her vehicle in a previous state of residence, may pay
without penalty any fees required by this chapter and transfer the title of his
or her vehicle in accordance with the provisions of this section.
(c) Notwithstanding any
provisions of this code to the contrary, the owners of trailers, semitrailers,
recreational vehicles and other vehicles not subject to the certificate of
title tax prior to the enactment of this chapter are subject to the privilege
tax imposed by this section: Provided, That the certification of title
of any recreational vehicle owned by the applicant on June 30, 1989, is not
subject to the tax imposed by this section: Provided, however, That
mobile homes, manufactured homes, modular homes and similar nonmotive propelled
vehicles, except recreational vehicles and house trailers, susceptible of being
moved upon the highways but primarily designed for habitation and occupancy,
rather than for transporting persons or property, or any vehicle operated on a
nonprofit basis and used exclusively for the transportation of intellectually
disabled or physically disabled children when the application for certificate
of registration for the vehicle is accompanied by an affidavit stating that the
vehicle will be operated on a nonprofit basis and used exclusively for the
transportation of intellectually disabled and physically disabled children, are
not subject to the tax imposed by this section, but are taxable under the
provisions of articles fifteen and fifteen-a, chapter eleven of this code.
(d) Beginning on July 1,
2008, the tax imposed under this subsection (b) of this section is abolished
and after that date no certificate of title for any motor vehicle may be issued
to any applicant unless the applicant provides sufficient proof to the Division
of Motor Vehicles that the applicant has paid the fees required by this article
and the tax imposed under section three-b, article fifteen, chapter eleven of
this code.
(e) Any person making any
affidavit required under any provision of this section who knowingly swears
falsely, or any person who counsels, advises, aids or abets another in the commission
of false swearing, or any person, while acting as an agent of the Division of
Motor Vehicles, issues a vehicle registration without first collecting the fees
and taxes or fails to perform any other duty required by this chapter or
chapter eleven of this code to be performed before a vehicle registration is
issued is, on the first offense, guilty of a misdemeanor and, upon conviction
thereof, shall be fined not more than $500 or be confined in jail for a period
not to exceed six months or, in the discretion of the court, both fined and
confined. For a second or any subsequent conviction within five years, that
person is guilty of a felony and, upon conviction thereof, shall be fined not
more than $5,000 or be imprisoned in a state correctional facility for not less
than one year nor more than five years or, in the discretion of the court, both
fined and imprisoned.
(f) Notwithstanding any
other provisions of this section, any person in the military stationed outside
West Virginia or his or her dependents who possess a motor vehicle with valid
registration are exempt from the provisions of this article for a period of
nine months from the date the person returns to this state or the date his or
her dependent returns to this state, whichever is later.
(g) No person may transfer,
purchase or sell a factory-built home without a certificate of title issued by
the commissioner in accordance with the provisions of this article:
(1) Any person who fails to
provide a certificate of title upon the transfer, purchase or sale of a factory-built
home is guilty of a misdemeanor and, upon conviction thereof, shall for the
first offense be fined not less than $100 nor more than $1,000, or be confined
in jail for not more than one year, or both fined and confined. For each
subsequent offense, the fine may be increased to not more than $2,000, with
confinement in jail not more than one year, or both fined and confined.
(2) Failure of the seller
to transfer a certificate of title upon sale or transfer of the factory-built home
gives rise to a cause of action, upon prosecution thereof, and allows for the
recovery of damages, costs and reasonable attorney fees.
(3) This subsection does
not apply to a mobile or manufactured home for which a certificate of title has
been canceled pursuant to section twelve-b of this article.
(h) Notwithstanding any
other provision to the contrary, whenever reference is made to the application
for or issuance of any title or the recordation or release of any lien, it
includes the application, transmission, recordation, transfer of ownership and
storage of information in an electronic format.
(i) Notwithstanding any
other provision contained in this section, nothing herein shall be considered
to include modular homes as defined in subsection (i), section two, article
fifteen, chapter thirty-seven of this code and built to the State Building Code
as established by legislative rules promulgated by the State Fire Commission
pursuant to section five-b, article three, chapter twenty-nine of this code.
NOTE: The purpose of this bill is
to exempt certain vehicles used in farming (Class X vehicles) from the tax
imposed upon the privilege of effecting the certification of title of a motor
vehicle.
Strike-throughs indicate language
that would be stricken from a heading or the present law and underscoring
indicates new language that would be added.
