WEST virginia legislature
2020 regular session
Introduced
House Bill 4741
By Delegate Ellington
[Introduced February 07, 2020; Referred to the Committee on 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:
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 20 cents per invoiced gallon and, on alternative fuel, on
each gallon equivalent, plus a variable component comprised of:
(1) On motor fuel other than alternative fuel, either the tax imposed by §11-15-18b of this code or the tax imposed under §11-15A-13a of this code, as applicable; and
(2) The variable component shall be equal to five percent
of the average wholesale price of the motor fuel. Provided,
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: Provided,
however, That on and after
July 1, 2017, the average wholesale price of motor fuel may not be determined
to be less than $3.04 per invoiced gallon for all gallons of motor fuel sold
during the reporting period notwithstanding any provision of this code to the
contrary and on and after July 1, 2017, the tax per gallon may not be less than
15.2 cents per gallon of motor fuel;
and
(2) On alternative fuel,
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. The variable
component of the tax on
alternative fuel shall be equal to five percent of the average wholesale price
of the alternative fuel.
(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 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 or on each gallon
equivalent of alternative fuel as determined by the Tax Commissioner from
information furnished by suppliers, importers and distributors of motor fuel
and alternative-fuel providers, alternative-fuel bulk end users and retailers
of alternative fuel in this state, or other information regarding wholesale
selling prices as the Tax Commissioner may gather or a combination of information.
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: Provided, That on and after July 1, 2017, the average
wholesale price may not be determined to be less than $3.04 per gallon of motor
fuel. 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: Provided, however, That in no case shall the average
wholesale price of motor fuel be determined to be less than $3.04 per invoiced
gallon. Any limitation on the
average wholesale price of motor fuel contained in this subsection shall not be
applicable to alternative fuel.
(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 a 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 an 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) 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 30 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.
(d) (c) The Tax Commissioner shall determine by
January 1, 2014, the gasoline gallon equivalent for each alternative fuel by
filing a notice of the gasoline gallon equivalent in the State Register and by
other means that the Tax Commissioner considers reasonable. The Tax
Commissioner may redetermine the gasoline gallon equivalent for each alternative
fuel by filing a notice of the gasoline gallon equivalent in the State Register
at least thirty days in advance of January 1 for the next succeeding tax year.
For purposes of this notice, the Tax Commissioner may adopt or incorporate by
reference provisions of the National Institute of Standards and Technology,
United States Department of Commerce, the Internal Revenue Code, United States
Treasury Regulations, the Internal Revenue Service publications or guidelines
or other publications or guidelines which
may be useful in determining, setting or describing the gasoline gallon
equivalent for each alternative fuel used as motor fuel.
(e) (d) Effective date. — The amendments to this section enacted during the first
extraordinary session of 2017 shall regular session of 2020 take
effect on July 1, 2017 2020.
NOTE: The purpose of this bill is to reduce the tax on motor fuel.
Strike-throughs indicate language that would be stricken from a heading or the present law and underscoring indicates new language that would be added.