Bill Text: WV HB2894 | 2018 | Regular Session | Introduced
Bill Title: Relating to the collection of taxes on wine and intoxicating liquors
Spectrum: Slight Partisan Bill (Republican 3-1)
Status: (Introduced - Dead) 2018-01-10 - To House Judiciary [HB2894 Detail]
Download: West_Virginia-2018-HB2894-Introduced.html
FISCAL
NOTE
WEST virginia legislature
2017 regular session
By
[
to the Committee on the Judiciary then Finance.
A BILL to amend and
reenact §8-13-7 of the Code of West
Virginia, 1931, as amended; to amend and reenact §60-3-9d of said code; to amend and reenact §60-4-3b of said code; and to amend and react §60-8-4 of said code, all relating to the collection of
taxes on wine and intoxicating liquors; providing that no wine or liquor excise
tax shall be collected on purchases of wine or intoxicating liquors in the
original sealed package for the purpose of resale, if the final purchase of
such wine or intoxicating liquor is subject to the excise tax; providing that
no liter tax shall be collected on wine sold in the original sealed package for
the purpose of resale, if the subsequent sale of such wine is subject to the
liter tax; and defining terms.
Be it enacted by the Legislature
of West Virginia:
That §8-13-7 of the Code of West Virginia, 1931, as amended,
be amended and reenacted; that §60-3-9d
of said code be amended and reenacted; that §60-4-3b
of said code be amended and reenacted; and §60-8-4
of said code be amended and reenacted, all to read as follows:
CHAPTER 8. MUNICIPAL
CORPORATIONS.
ARTICLE 13. TAXATION AND
FINANCE.
§8-13-7. Tax on
purchases of intoxicating liquors in municipalities; private club fees.
(a) Every municipality shall have plenary power and
authority to levy and collect a tax upon all purchases within such municipality
of intoxicating liquors from the Alcohol Beverage Control Commissioner, from
any person licensed to sell wine at retail to the public under the provisions
of article eight, chapter sixty of this code, or from distributors licensed to
sell or distribute wine pursuant to said article eight: Provided, That
no municipality shall have authority to levy or collect any such tax on the
intoxicating liquors sold by or purchased from holders of a license issued
under the provisions of article seven, chapter sixty of this code: Provided, however, That, no
municipality shall have authority to levy or collect any such tax on purchases
within such municipality 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 section nine-d, article three, chapter sixty of this
code, or under section twenty-one, article three-a, chapter sixty of this code.
This section shall not be interpreted to authorize a purchase for resale
exemption in contravention of section nine-a, article fifteen, chapter eleven
of this code. The tax shall be levied upon the purchaser and shall be added
to and collected with the price of purchase. The tax shall not exceed five
percent of the purchase price.
A copy of any ordinance
imposing the tax authorized by this section shall be certified by the mayor of
the municipality to the West Virginia Alcohol Beverage Control Commissioner and
to the Tax Commissioner. The West Virginia Alcohol Beverage Control
Commissioner by appropriate rules and regulations shall provide for the
collection of such tax upon all purchases within such municipality of
intoxicating liquors from the Alcohol Beverage Control Commissioner, from any
person licensed to sell wine at retail pursuant to the provisions of article
eight, chapter sixty of this code, or from distributors licensed to sell or
distribute wine pursuant to said article eight, and for distribution thereof to
the respective municipalities for which the same shall be collected. Such rules
and regulations shall provide that all such taxes shall be deposited with the
state Treasurer and distributed quarterly by the treasurer upon warrants of the
Auditor payable to the municipality.
Every municipality shall
have plenary power and authority to levy and collect a fee from any private
club licensee whose premises are situate therein as authorized in section
seven, article seven, chapter sixty of this code.
(b) For purposes
of this article:
(1) “Original sealed
package” means an original package, as defined in this article, bearing an
unbroken seal, as defined in this article. For purposes of this article the
term “original sealed package” does not mean or include a case, shipping box,
carton, bottle caddy, cargo container, or any other packaging or container that
is not in immediate physical contact with its liquid contents, and which is not
a “container,” as defined in this article;
(2) “Original package”
means that container (as defined in this article) into which the manufacturer
or bottler of a given liquor or wine first placed a given wine or liquor
immediately after it was produced, which is intended by the manufacturer or
bottler to be the container in which such wine or liquor is to be sold;
(3) “Seal” means a piece
of wax, foil, metal, plastic or paper affixed to a container of liquor or wine,
in such a way that the seal must be broken when the container is opened. The
purpose of a seal is to show evidence of opening, tampering or alteration of
the container. A seal bears some combination of embossed, printed, engraved or
impressed emblems, figures, symbols, words, trademarks, stamps, medallions,
marks, or letters, for attestation or evidence of authenticity. A seal is
typically affixed to a package or container by the manufacturer or bottler of a
given wine or liquor. The term “seal” may include a seal provided by or
specified by this state, and required by law to be affixed to a container of
liquor or wine; and
(4) “Container” means a
bottle, boxed wine box (including the liner, bag or bladder thereof), cask,
can, jug or other holder of liquor or wine, which is in immediate physical
contact with the liquid contents, and which is the only means by which its
liquid contents is prevented from flowing or leaking out of the holder, and
which is intended to be the container in which such wine or liquor is to be
sold to final consumers.
CHAPTER 60. STATE
CONTROL OF ALCOHOLIC LIQUORS.
ARTICLE 3. SALES BY
COMMISSIONER.
§60-3-9d. Tax on purchases
of intoxicating liquors outside corporate limits of municipalities.
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 outside the corporate limits of any municipality 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 article eight, chapter sixty of this code, and of wine from
distributors licensed to sell or distribute wine under the provisions of said
article eight. 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 no such tax shall
be collected on the intoxicating liquors sold by or purchased from holders of a
license issued under the provisions of article seven of this chapter: Provided, however, That, no
such tax shall 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 section seven, article thirteen,
chapter eight of this code, or under section twenty-one, article three-a,
chapter sixty of this code. This section shall not be interpreted to authorize
a purchase for resale exemption in contravention of section nine-a, article
fifteen, chapter eleven of this code.
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 so collected shall be
remitted to the county wherein collected: Provided, That where the
corporate limits of more than one municipality be 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.
The West Virginia Alcohol
Beverage Control Commissioner by appropriate rules and regulations shall
provide for the collection of such tax upon all purchases outside the corporate
limits of any municipality of intoxicating liquor from state stores or other
agencies of the Alcohol Beverage Control Commissioner, separation or proration
of the same and distribution thereof to the respective counties and municipalities
for which the same shall be collected. The Tax Commissioner by appropriate
rules and regulations shall provide for the collection of such tax upon all
purchases outside the corporate limits of any municipality of wine from any
person licensed to sell wine at retail under the provisions of article eight,
chapter sixty of this code, or from distributors licensed to sell or distribute
wine under the provisions of said article eight, and shall also provide for
separation or proration of the same and distribution thereof to the respective
counties and municipalities for which the same shall be collected. Such rules
and regulations shall provide that all such taxes shall be deposited with the State
Treasurer and distributed quarterly by the treasurer upon warrants of the
Auditor payable to the counties and municipalities.
(b) For purposes of this
article:
(1) “Original sealed
package” means an original package, as defined in this article, bearing an
unbroken seal, as defined in this article. For purposes of this article the
term “original sealed package” does not mean or include a case, shipping box,
carton, bottle caddy, cargo container, or any other packaging or container that
is not in immediate physical contact with its liquid contents, and which is not
a “container,” as defined in this article;
(2) “Original package”
means that container (as defined in this article) into which the manufacturer
or bottler of a given liquor or wine first placed a given wine or liquor
immediately after it was produced, which is intended by the manufacturer or
bottler to be the container in which such wine or liquor is to be sold;
(3) “Seal” means a piece
of wax, foil, metal, plastic or paper affixed to a container of liquor or wine,
in such a way that the seal must be broken when the container is opened. The
purpose of a seal is to show evidence of opening, tampering or alteration of
the container. A seal bears some combination of embossed, printed, engraved or
impressed emblems, figures, symbols, words, trademarks, stamps, medallions,
marks, or letters, for attestation or evidence of authenticity. A seal is
typically affixed to a package or container by the manufacturer or bottler of a
given wine or liquor. The term “seal” may include a seal provided by or
specified by this state, and required by law to be affixed to a container of
liquor or wine; and
(4) “Container” means a
bottle, boxed wine box (including the liner, bag or bladder thereof), cask,
can, jug or other holder of liquor or wine, which is in immediate physical contact
with the liquid contents, and which is the only means by which its liquid
contents is prevented from flowing or leaking out of the holder, and which is
intended to be the container in which such wine or liquor is to be sold to
final consumers.
ARTICLE 4. LICENSES.
§60-4-3b. Winery and farm winery license to manufacture
and sell.
(a) Sales of wine. —
An operator of a winery or farm winery may offer wine produced by the winery or
farm winery for retail sale to customers from the winery or farm winery for
consumption off the premises only. Except for free complimentary samples
offered pursuant to section one, article six of this chapter, customers are
prohibited from consuming any wine on the premises of the winery or farm
winery, unless such winery or farm winery has obtained a multicapacity winery
or farm winery license: Provided, That a licensed winery or farm winery may offer
complimentary samples per this subsection of wine manufactured by that licensed
winery or farm winery for consumption on the premises only on Sundays beginning
at ten o’clock a.m. in any county in which the same
has been approved as provided in section
three-pp, article one, chapter seven of this code.
(b) Retail sales. — Every licensed winery or
farm winery shall comply with the provisions of articles three, four and eight
of this chapter as applicable to wine retailers, wineries and suppliers when
properly licensed in such capacities.
(c) Payment of taxes and
fees. — The winery or farm winery shall pay all taxes and fees required of
licensed wine retailers and meet applicable licensing provisions as required by
this chapter and by rule of the commissioner. Each winery or farm winery acting
as its own supplier shall submit to the Tax Commissioner the liter tax for all
sales at the winery or farm winery each month, as provided in article eight of
this chapter: Provided,
That no wine excise tax shall be collected on purchases of wine in the original
sealed package for the purpose of resale in the original sealed package, if the
final purchase of such wine is subject to the excise tax: Provided, however, That, no liter tax shall be collected on wine
sold in the original sealed package for the purpose of resale in the original
sealed package, if the a subsequent sale of such wine is subject to the liter
tax. This section shall not be interpreted to authorize a purchase for resale
exemption in contravention of section nine-a, article fifteen, chapter eleven
of this code.
(d) Advertising. — A
winery or farm winery may advertise a particular brand or brands of wine
produced by it, and the price of the wine subject to federal requirements or
restrictions.
(e)
Limitations on licensees. — A winery or farm winery must maintain
separate winery or farm winery supplier, retailer and direct shipper licenses
when acting in one or more of those capacities, and must pay all associated
license fees, unless such winery or farm winery holds a license issued pursuant
to the provisions of subdivision (12), subsection (b), section three, article
eight of this chapter. A winery or farm winery, if holding the appropriate
licenses or a multicapacity winery or farm winery license, may act as its own
supplier; retailer for off-premises consumption of its wine as specified in
section two, article six of this chapter; private wine restaurant; and direct
shipper for wine produced by the winery or farm winery. All wineries must use a
distributor to distribute and sell their wine in the state, except for farm
wineries. No more than one winery or farm winery license may be issued to a
single person or entity and no person may
hold both a winery and a farm winery license.
(f) Definitions. — For purposes of this article:
(1) “Original sealed
package” means an original package, as defined in this article, bearing an
unbroken seal, as defined in this article. For purposes of this article the
term “original sealed package” does not mean or include a case, shipping box,
carton, bottle caddy, cargo container, or any other packaging or container that
is not in immediate physical contact with its liquid contents, and which is not
a “container,” as defined in this article;
(2) “Original package”
means that container (as defined in this article) into which the manufacturer
or bottler of a given liquor or wine first placed a given wine or liquor
immediately after it was produced, which is intended by the manufacturer or
bottler to be the container in which such wine or liquor is to be sold;
(3) “Seal” means a piece
of wax, foil, metal, plastic or paper affixed to a container of liquor or wine,
in such a way that the seal must be broken when the container is opened. The
purpose of a seal is to show evidence of opening, tampering or alteration of
the container. A seal bears some combination of embossed, printed, engraved or
impressed emblems, figures, symbols, words, trademarks, stamps, medallions,
marks, or letters, for attestation or evidence of authenticity. A seal is
typically affixed to a package or container by the manufacturer or bottler of a
given wine or liquor. The term “seal” may include a seal provided by or
specified by this state, and required by law to be affixed to a container of
liquor or wine; and
(4) “Container” means a
bottle, boxed wine box (including the liner, bag or bladder thereof), cask,
can, jug or other holder of liquor or wine, which is in immediate physical
contact with the liquid contents, and which is the only means by which its liquid
contents is prevented from flowing or leaking out of the holder, and which is
intended to be the container in which such wine or liquor is to be sold to
final consumers.
ARTICLE 8. SALE OF
WINES.
§60-8-4. Liter tax.
(a) There is hereby levied and imposed on all wine sold
after July 1, 2007, by suppliers to distributors, and including all wine sold
and sent to West Virginia adult residents from direct shippers, except wine
sold to the commissioner, a tax of twenty-six and four hundred six-thousandths
cents per liter: Provided,
That no liter tax shall be collected on wine sold in the original sealed
package for the purpose of resale in the original sealed package, if the a
subsequent sale of such wine is subject to the liter tax. This section shall
not be interpreted to authorize a purchase for resale exemption in
contravention of section nine-a, article fifteen, chapter eleven of this code.
Before the sixteenth day of
each month thereafter, every supplier, distributor and direct shipper shall
make a written report under oath to the Tax Commissioner and the commissioner
showing the identity of the purchaser, the quantity, label and alcoholic
content of wine sold by the supplier to West Virginia distributors or the
direct shipper to West Virginia adult residents during the preceding month and
at the same time shall pay the tax imposed by this article on the wine sold to
the distributor or the West Virginia adult residents during the preceding month
to the Tax Commissioner.
The reports shall contain
other information and be in the form the Tax Commissioner may require. For
purposes of this article, the reports required by this section shall be
considered tax returns covered by the provisions of article ten, chapter eleven
of this code. Failure to timely file the tax returns within five calendar days
of the sixteenth day of each month will also subject a supplier, distributor
and direct shipper to penalties under section eighteen of this article.
No wine imported, sold or
distributed in this state or sold and shipped to this state by a direct shipper
shall be subject to more than one liter tax.
(b) For purposes of this
article:
(1) “Original sealed
package” means an original package, as defined in this article, bearing an
unbroken seal, as defined in this article. For purposes of this article the
term “original sealed package” does not mean or include a case, shipping box,
carton, bottle caddy, cargo container, or any other packaging or container that
is not in immediate physical contact with its liquid contents, and which is not
a “container,” as defined in this article;
(2) “Original package”
means that container (as defined in this article) into which the manufacturer
or bottler of a given liquor or wine first placed a given wine or liquor
immediately after it was produced, which is intended by the manufacturer or
bottler to be the container in which such wine or liquor is to be sold;
(3) “Seal” means a piece
of wax, foil, metal, plastic or paper affixed to a container of liquor or wine,
in such a way that the seal must be broken when the container is opened. The
purpose of a seal is to show evidence of opening, tampering or alteration of
the container. A seal bears some combination of embossed, printed, engraved or
impressed emblems, figures, symbols, words, trademarks, stamps, medallions,
marks, or letters, for attestation or evidence of authenticity. A seal is
typically affixed to a package or container by the manufacturer or bottler of a
given wine or liquor. The term “seal” may include a seal provided by or
specified by this state, and required by law to be affixed to a container of
liquor or wine; and
(4) “Container” means a
bottle, boxed wine box (including the liner, bag or bladder thereof), cask,
can, jug or other holder of liquor or wine, which is in immediate physical
contact with the liquid contents, and which is the only means by which its
liquid contents is prevented from flowing or leaking out of the holder, and
which is intended to be the container in which such wine or liquor is to be
sold to final consumers.
NOTE: The purpose of this bill is
to provide that no wine or liquor excise tax will be collected on purchases of
wine or intoxicating liquors in the original sealed package for the purpose of
resale, if the final purchase of the wine or intoxicating liquor is subject to
the excise tax. The bill also provides
that no liter tax will be collected on wine sold in the original sealed package
for the purpose of resale, if the subsequent sale of the wine is subject to the
liter tax. The bill also defines terms.
Strike-throughs indicate language
that would be stricken from a heading or the present law and underscoring
indicates new language that would be added.
