HB 4754 — Exempting the processing of beef, pork or lamb by a slaughterhouse for an individual owner of the product processed from the Consumer Sales and Service Tax

WEST VIRGINIA LEGISLATURE REGULAR SESSION IntroducedCommittee Substitute for House Bill 4754 By DelegateDelegates Criss, Horst, Thorne, Espinosa, Anderson, BarnhartFehrenbacher, and FehrenbacherBarnhart [Introduced[Originating Januaryin 15,the 2024;Committee on Finance;

ReferredReported to the Committee on AgricultureFebruary and9, Natural2024] ResourcesCS thenfor Finance ] Intr HB 2024R28904754 A BILL to amend and reenact §11-15-9 of the Code of West Virginia, 1931, as amended, relating to exempting the processing of beef, pork or lamb by a slaughterhouse for an individual owner of the product processed from the Consumer Sales and Service Tax.

1 CS for HB 4754 (4) Sales of vehicles which are titled by the Division of Motor Vehicles and which are Intr HB 2024R2890 subject to the tax imposed by §11-15-3c of this code or like tax;

(E) A youth organization, such as the Girl Scouts of the United States of America, the Boy Scouts of America, or the YMCA Indian Guide/Princess Program and the local affiliates thereof, 2 CS for HB 4754 which is organized and operated exclusively for charitable purposes and has as its primary purpose the nonsectarian character development and citizenship training of its members;

Intr HB 2024R2890 (F) For purposes of this subsection:

3 CS for HB 4754 (G) The exemption allowed by this subdivision does not apply to sales of gasoline or special fuel or to sales of tangible personal property or services to be used or consumed in the Intr HB 2024R2890 generation of unrelated business income as defined in Section 513 of the Internal Revenue Code of 1986, as amended.

4 CS for HB 4754 (9) Sales of tangible personal property to a person for the purpose of resale in the form of tangible personal property:

Provided, however, Intr HB 2024R2890 That sales of building materials or building supplies or other property to any person engaging in the activity of contracting, as defined in this article, which is to be installed in, affixed to, or incorporated by that person or his or her agent into any real property, building, or structure is not exempt under this subdivision;

Provided, That sales for volunteer fire departments and volunteer school support groups, with duration of events being no more than 84 consecutive hours at a time, which are held no more than 18 times in a 12- month period for the purposes of this subdivision are considered "casual and occasional sales not 5 CS for HB 4754 conducted in a repeated manner or in the ordinary course of repetitive and successive transactions of a like character";

(15) Sales of property or services to a school which has approval from the Higher Intr HB 2024R2890 Education Policy Commission or the Council for Community and Technical College Education to award degrees, which has its principal campus in this state and which is exempt from federal and state income taxes under Section 501(c)(3) of the Internal Revenue Code of 1986, as amended:

6 CS for HB 4754 (21) Sales of electronic data processing services and related software:

(A) The processing of another’s data, including all processes incident to processing of data such as keypunching, keystroke verification, rearranging or sorting of previously documented data Intr HB 2024R2890 for the purpose of data entry or automatic processing, and changing the medium on which data is sorted, whether these processes are done by the same person or several persons;

(A) Food purchased or sold by a public or private school, school-sponsored student organizations, or school-sponsored parent-teacher associations to students enrolled in the school 7 CS for HB 4754 or to employees of the school during normal school hours;

(B) Food purchased or sold by a public or private college or university or by a student organization officially recognized by the college or university to students enrolled at the college or university when the sales are made on a contract basis so that a fixed price is paid for consumption Intr HB 2024R2890 of food products for a specific period of time without respect to the amount of food product actually consumed by the particular individual contracting for the sale and no money is paid at the time the food product is served or consumed;

or (G) Food sold by volunteer fire departments and rescue squads that are exempt from federal income taxes under Section 501(c)(3) or (c)(4) of the Internal Revenue Code of 1986, as 8 CS for HB 4754 amended, when the purpose of the sale is to obtain revenue for the functions and activities of the organization and the revenue obtained is exempt from federal income tax and actually expended for that purpose;

(25) Sales of food by little leagues, midget football leagues, youth football or soccer leagues, band boosters, or other school or athletic booster organizations supporting activities for Intr HB 2024R2890 grades kindergarten through 12 and similar types of organizations, including scouting groups and church youth groups, if the purpose in selling the food is to obtain revenue for the functions and activities of the organization and the revenues obtained from selling the food is actually used in supporting or carrying on functions and activities of the groups:

9 CS for HB 4754 (32) Sales of motion picture films to motion picture exhibitors for exhibition if the sale of tickets or the charge for admission to the exhibition of the film is subject to the tax imposed by this article and sales of coin-operated video arcade machines or video arcade games to a person engaged in the business of providing the machines to the public for a charge upon which the tax imposed by this article is remitted to the Tax Commissioner:

Provided, That the exemption provided in this subdivision may be claimed by presenting to the seller a properly executed Intr HB 2024R2890 exemption certificate;

10 CS for HB 4754 (A) The services are provided to an out-of-state client;

Intr HB 2024R2890 For the purpose of this subdivision, the term "primary opinion research" means original research in the form of telephone surveys, mall intercept surveys, focus group research, direct mail surveys, personal interviews, and other data-collection methods commonly used for quantitative and qualitative opinion research studies;

11 CS for HB 4754 (G) Fruits or vegetables into a dried, canned, or frozen product;

(40) Sales of music instructional services by a music teacher and artistic services or artistic performances of an entertainer or performing artist pursuant to a contract with the owner or Intr HB 2024R2890 operator of a retail establishment, restaurant, inn, bar, tavern, sports or other entertainment facility, or any other business location in this state in which the public or a limited portion of the public may assemble to hear or see musical works or other artistic works be performed for the enjoyment of the members of the public there assembled when the amount paid by the owner or operator for the artistic service or artistic performance does not exceed $3,000:

Provided further, That 12 CS for HB 4754 nude dancers or strippers may not be considered as entertainers for the purposes of this exemption;

(41) Charges to a member by a membership association or organization which is exempt from paying federal income taxes under Section 501(c)(3) or (c)(6) of the Internal Revenue Code of 1986, as amended, for membership in the association or organization, including charges to members for newsletters prepared by the association or organization for distribution primarily to its members, charges to members for continuing education seminars, workshops, conventions, Intr HB 2024R2890 lectures, or courses put on or sponsored by the association or organization, including charges for related course materials prepared by the association or organization or by the speaker or speakers for use during the continuing education seminar, workshop, convention, lecture, or course, but not including any separate charge or separately stated charge for meals, lodging, entertainment, or transportation taxable under this article:

13 CS for HB 4754 (44) Sales of soap to be used at car wash facilities;

For purposes of this exemption, the service of providing technical evaluations for compliance with federal and state environmental standards includes Intr HB 2024R2890 those costs of tangible personal property directly used in providing such services that are separately billed to the purchaser of such services and on which the tax imposed by this article has previously been paid by the service provider;

and 14 CS for HB 4754 (51) Sales of services providing the processing of beef, pork or lamb by a slaughterhouseslaughterhouse. for an individual owner of the product processed.

Intr HB 2024R2890 (1) Sales of property or services to bona fide charitable organizations who make no charge whatsoever for the services they render:

and (5) Sales of building materials or building supplies or other property to an organization qualified under Section 501(c)(3) or (c)(4) of the Internal Revenue Code of 1986, as amended, which are to be installed in, affixed to, or incorporated by the organization or its agent into real property or into a building or structure which is or will be used as permanent low-income housing, 15 CS for HB 4754 transitional housing, an emergency homeless shelter, a domestic violence shelter, or an emergency children and youth shelter if the shelter is owned, managed, developed, or operated by an organization qualified under Section 501(c)(3) or (c)(4) of the Internal Revenue Code of 1986, as amended.

Provided, That the Intr HB 2024R2890 amendments to subdivision (6), subsection (b) of this section take effect upon passage of this act of the Legislature and shall be construed to prohibit on and after January 1, 2018, all transfers to the State Road Fund established in the State Treasury pursuant to section 52, article VI of the Constitution of West Virginia, of the taxes imposed by §11-15-1 et seq.

NOTE:

The purpose of this bill is to exempt the processing of beef, pork or lamb by a slaughterhouse for an individual owner of the product processed from the Consumer Sales and Service Tax.

Strike-throughs indicate language that would be stricken from a heading or the present law and underscoring indicates new language that would be added.