H. B. 2529
(By Delegates Ellington, Householder, Storch, Border,
Rowan, Shott, Folk and Faircloth)
[Introduced February 19, 2013; referred to the
Committee on Roads and Transportation then Finance.]
A BILL to amend and reenact §11-14C-5 of the Code of West Virginia,
1931, as amended, relating to reducing the motor fuel excise
tax.
Be it enacted by the Legislature of West Virginia:
That §11-14C-5 of the Code of West Virginia, 1931, as amended,
be amended and reenacted to read as follows:
ARTICLE 14C. MOTOR FUEL EXCISE TAX.
§11-14C-5. Taxes levied; rate.
(a) There is hereby levied on all motor fuel an excise tax
composed of a flat rate equal to $.205 of $.15 per invoiced gallon.
plus a variable component comprised of either the tax imposed by
section eighteen-b, article fifteen of this chapter or the tax
imposed under section thirteen-a, article fifteen-a of this
chapter, as applicable: Provided, That the motor fuel excise tax
shall take effect January 1, 2004: Provided, however, That the
variable component shall be equal to five percent of the average wholesale price of the motor fuel: Provided further, That the
average wholesale price shall be no less than $.97 per invoiced
gallon and is computed as hereinafter prescribed in this section:
And provided further, That on and after January 1, 2010, the
average wholesale price shall be no less than $2.34 per invoiced
gallon and is computed as hereinafter prescribed in this section.
(b) Determination of average wholesale price. --
(1) To simplify determining the average wholesale price of all
motor fuel, the Tax Commissioner shall, effective with the period
beginning the first day of the month of the effective date of the
tax and each January 1 thereafter, determine the average wholesale
price of motor fuel for each annual period on the basis of sales
data gathered for the preceding period of July 1 through October
31. Notification of the average wholesale price of motor fuel
shall be given by the Tax Commissioner at least thirty days in
advance of each January 1 by filing notice of the average wholesale
price in the State Register and by any other means as the Tax
Commissioner considers reasonable.
(2) The "average wholesale price" means the single, statewide
average per gallon wholesale price, rounded to the third decimal
(thousandth of a cent), exclusive of state and federal excise taxes
on each gallon of motor fuel, as determined by the Tax Commissioner
from information furnished by suppliers, importers and distributors
of motor fuel in this state, or other information regarding wholesale selling prices as the Tax Commissioner may gather, or a
combination of information: Provided, That in no event shall the
average wholesale price be determined to be less than $.97 per
gallon of motor fuel: Provided, however, That for calendar year
2009, the average wholesale price of motor fuel shall not exceed
the average wholesale price of motor fuel for calendar year 2008 as
determined pursuant to the notice filed by the Tax Commissioner
with the Secretary of State on November 21, 2007, and published in
the State Register on November 30, 2007: Provided further, That on
and after January 1, 2010, in no event shall the average wholesale
price be determined to be less than $2.34 per gallon of motor fuel:
And provided further, That on and after January 1, 2011, the
average wholesale price shall not vary by more than ten percent
from the average wholesale price of motor fuel as determined by the
Tax Commissioner for the previous calendar year.
(3) All actions of the Tax Commissioner in acquiring data
necessary to establish and determine the average wholesale price of
motor fuel, in providing notification of his or her determination
prior to the effective date of any change in rate, and in
establishing and determining the average wholesale price of motor
fuel may be made by the Tax Commissioner without compliance with
the provisions of article three, chapter twenty-nine-a of this
code.
(4) In any administrative or court proceeding brought to challenge the average wholesale price of motor fuel as determined
by the Tax Commissioner, his or her determination is presumed to be
correct and shall not be set aside unless it is clearly erroneous.
(c) (b) There is hereby levied a floorstocks tax on motor
fuel held in storage outside the bulk transfer/terminal system as
of the close of the business day preceding January 1, 2004, and
upon which the tax levied by this section has not been paid. For
the purposes of this section, "close of the business day" means the
time at which the last transaction has occurred for that day. The
floorstocks tax is payable by the person in possession of the motor
fuel on January 1, 2004. The amount of the floorstocks tax on
motor fuel is equal to the sum of the tax rate specified in
subsection (a) of this section multiplied by the gallons in storage
as of the close of the business day preceding January 1, 2004.
(1) Persons in possession of taxable motor fuel in storage
outside the bulk transfer/terminal system as of the close of the
business day preceding January 1, 2004, shall:
(A) Take an inventory at the close of the business day
preceding January 1, 2004, to determine the gallons in storage for
purposes of determining the floorstocks tax;
(B) Report no later than January 31, 2004, the gallons on
forms provided by the commissioner; and
(C) Remit the tax levied under this section no later than June
1, 2004.
(2) In the event the tax due is paid to the commissioner on or
before January 31, 2004, the person remitting the tax may deduct
from their remittance five percent of the tax liability due.
(3) In the event the tax due is paid to the commissioner after
June 1, 2004, the person remitting the tax shall pay, in addition
to the tax, a penalty in the amount of five percent of the tax
liability due.
(4) In determining the amount of floorstocks tax due under
this section, the amount of motor fuel in dead storage may be
excluded. There are two methods for calculating the amount of
motor fuel in dead storage:
(A) If the tank has a capacity of less than ten thousand
gallons, the amount of motor fuel in dead storage is two hundred
gallons and if the tank has a capacity of ten thousand gallons or
more, the amount of motor fuel in dead storage is four hundred
gallons; or
(B) Use the manufacturer's conversion table for the tank after
measuring the number of inches between the bottom of the tank and
the bottom of the mouth of the drainpipe: Provided, That the
distance between the bottom of the tank and the bottom of the mouth
of the draw pipe is presumed to be six inches.
(d) Every licensee who, on the effective date of any rate
change, has in inventory any motor fuel upon which the tax or any
portion thereof has been previously paid shall take a physical inventory and file a report thereof with the commissioner, in the
format as required by the commissioner, within thirty days after
the effective date of the rate change, and shall pay to the
commissioner at the time of filing the report any additional tax
due under the increased rate.
NOTE: The purpose of this bill is to reduce the tax on motor
fuel.
Strike-throughs indicate language that would be stricken from
the present law, and underscoring indicates new language that would
be added.
