SB 550 — Providing counties with authority to impose county sales and use tax of up to one percent under certain circumstances

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Red = new code to be enacted WEST virginia legislature regular session IntroducedCommittee Substitute for Senate Bill 550 By Senators Woodrum, Roberts, Romano, Lindsay, and LindsayStollings [Introduced[Originating Marchin 3,the 2021;Committee on Government Organization;

referredreported on March 24, 2021]   A BILL to amend the CommitteeCode onof GovernmentWest Organization;Virginia, 1931, as amended, by adding thereto a new article, designated §7-28-1 and §7-28-2;

and then to the Committee on Finance] A BILL to amend the Code of West Virginia, 1931, as amended, by adding thereto a new article, designated §7-28-1 and §7-28-2;

providing counties with authority to impose a county sales and use tax of up to one percent under certain circumstances;

-— The Legislature hereby finds and declares that county commissions today face numerous challenges managing their budgets and other resourcesresources, and that it is in the public’s best interest to provide counties with the local control, flexibility, and accountability to address the financial demands that increasing regional jail bills, infrastructure repairs, and other expenses place on our county government, while also ensuring that counties remain good stewards of taxpayer funds.

Therefore, it is the intent of the Legislature in enacting this article to provide counties with the local control and monetary flexibility necessary to meet their financial needs and plan for unexpected events in the future.   (b) Authority to impose county sales tax. -tax. — On and after July 1, 2021, any county may impose and collect, by a majority vote of its county commission, a county sales and use tax of up to one percent:

-— In no event shall the county sales and use tax authorized by this section be applicable to an incorporated area within the county.

-— Any county that imposes a county sales tax pursuant to §7-28-1 of this code shall use the services of the Tax Commissioner to administer, enforce, and collect the tax in the same manner as the state consumerconsumers sales and service tax and use tax under the provisions of §11-15-1 et seq., §11-15A-1 et seq., and §11-15B-1 et seq.

of this code.code, except for any provisions therein relating to the sale of motor fuel or motor vehicles.

–— Any county that imposes a sales and use tax pursuant to §7-28-1 of this code, or otherwise changes the rate of such taxes, shall notify the Tax Commissioner at least 180 days before the effective date of the imposition of the taxes or the change in the rate of the taxes.  (c) Application of state sales tax law.

-–— The state consumers sales and service tax law, as set forth in §11-15-1 et seq.

of this code, and the amendments to that articlearticle, and the rules of the Tax Commissioner relating to the laws shall apply to a county sales and use tax imposed pursuant to §7-28-1 of this code to the extent the rules and laws are applicable.

--— The state use tax law, set forth in §11-15A-1 et seq.

of this code, and the amendments to that articlearticle, and the rules of the Tax Commissioner relating to the laws shall apply to a county sales and use tax imposed pursuant to §7-28-1 of this code to the extent the rules and laws are applicable.

-–— Any term used in this§7-28-1 articleet or in an ordinance adopted pursuant to this article that is defined in the provisions of §11-15-1 et seq., §11-15A-1 et seq., and §11-15B-1 et seq.

of this code, or in an ordinance adopted pursuant to this article that is defined in the provisions of §11-15-1 et seq., §11-15A-1 et seq., and §11-15B-1 et seq.

--— Any amendments to §11-9-1 et seq., §11-10-1 et seq., §11-15-1 et seq., §11-15A-1 et seq., and §11-15B-1 et seq.

of this code shall automatically apply to a sales or use tax imposed pursuant to this§7-28-1 article,et toseq. the extent applicable.

of this code, to the extent applicable.

-–— The Tax Commissioner may retain from collections a fee not to exceed the lesser of the cost of the service provided or onefive percent of the amount of taxes imposed pursuant to this§7-28-1 articleet thatseq. are collected by the Tax Commissioner during any fiscal year.  Any such fees collected shall be deposited in the Local Sales Tax and Excise Tax Administration Fund pursuant to §11-10-11C of this code.  (h) Administrative procedures.

-–of Eachthis andcode everythat provisionare ofcollected by the WestTax VirginiaCommissioner Taxduring Procedureany fiscal year.  Any such fees collected shall be deposited in the Local Sales Tax and Excise Tax Administration ActFund setpursuant forthto in§11-10-11C §11-10-1of etthis seq.code.  (h) Administrative procedures.

— Each and every provision of the West Virginia Tax Procedure and Administration Act set forth in §11-10-1 et seq.

-–— Each and every provision of the West Virginia Tax Crimes and Penalties Act set forth in §11-9-1 et seq.

of this code applies to the taxes imposed pursuant to §7-28-1 of this code with like effect as if that act were applicable only to the taxes imposed pursuant to this§7-28-1 articleet andseq. were set forth in extenso in this article.

of this code, and were set forth in extenso in §7-28-1 et seq.

of this code.

taxationtaxation. article 10.

article 10.

jurisdiction and standing before the officeOffice of taxTax appeals;Appeals;

(a) The Tax Commissioner has exclusive responsibility for administering, collectingcollecting, and enforcing all local sales and use taxes and excise taxes imposed pursuant to §7-22-1 et seq., §7-28-1, §8-1-5a, §8-13C-1 et seq., and §8-38-1 et seq.

and §8-38-1 et seq.

(b) Pursuant to, and limited by, the provisions of §11-10A-8 of this code, the Office of Tax Appeals has exclusive and original jurisdiction to hear disputes arising from any local sales and use taxes and excise taxes for which the Tax Commissioner has exclusive administration, enforcementenforcement, and collection responsibility.

No municipality or county has standing before the Office of Tax Appeals in any dispute arising under any local sales and use tax and excise tax upon which the Tax Commissioner has exclusive responsibility for administration, enforcementenforcement, and collection.

(c) Notwithstanding any other provision of this code to the contrary, the Tax Commissioner may assess a fee, to be established by legislative rule pursuant to the provisions of §29A-3-1,§29A-3-1 et seq.

of this code, to be retained from collections authorized by §8-1-5a of this code, and §8-13C-6 of this code:

— (1) There is created in the State Treasury a special revenue revolving fund account known as the “LocalLocal Sales Tax and Excise Tax Administration Fund”.Fund.

Expenditures from the fund shall be for the purposes set forth in this section and are not authorized from collections but are to be made only in accordance with appropriation by the Legislature and in accordance with the provisions of §12-3-1,§12-3-1 et seq.

(A) Any funds collected pursuant to sectionsubsection (c) of this section;

and (B) Any funds received on and after July 1, 2013, from fees retained by the Tax Commissioner pursuant to §8-13C-6 of this code;