Legislative Changes 2016

SB 54

Purpose

Exempts from consumers sales and service tax the dues, fees and assessments paid by members to homeowners’ associations when used for payment of common expenses.

Details

The bill codifies an existing practice, with an effective date of June 9, 2016.

Forms Affected

SB 293

Purpose

Extends the termination date of the Neighborhood Investment Program.

Details

The termination of the tax credit, which was due to expire July 1, 2016, is moved forward five years, to July 1, 2021.

Forms Affected

Instructions for Schedule WV/NIPA-2

SB 349

Purpose

Updates the meaning of "federal taxable income" and certain other terms in the West Virginia Personal Income Tax Act; and changes the filing date for certain tax withheld.

Details

The due dates for withholding of tax from partnerships, S corporations, estates or trusts, including composite returns is changed from the 15th day of the fourth month to the 15th day of the 3rd month after the end of the tax year.

The change in the due date becomes effective for tax years beginning after December 31, 2015.

Forms Affected

West Virginia S Corporation & Partnership Income Tax Instructions.

SB 419

Purpose

This bill terminates the Workers Compensation Severance Tax.

Details

This tax will end effective June 30, 2016. Annual returns for the SEV-401V are due July 31, 2016. Annual returns received after July 31, 2016 will be considered late.

Forms Affected

This tax is reported on the following forms:

SB 419

Purpose

This bill resumes the Timber Severance Tax

Details

Effective July 1, 2016 this tax will resume at a new tax rate of 1.5%. The first monthly return will be due August 31, 2016. The first quarterly return will be due October 31, 2016.

Forms Affected

This tax is reported on the following forms:

SB 421

Purpose

This bill terminates the Behavioral Health Severance and Business Privilege Tax.

Details

This tax will end effective June 30, 2016. Annual returns for the SEV-401H are due July 31, 2016. Annual returns received after July 31, 2016 will be considered late.

Forms Affected

This tax is reported on the following forms:

SB 421

Purpose

This bill changes the Consumers Sales and Service Tax exemption for durable medical equipment from health care providers to home users for a two year period.

Details

The current exemption for health care providers will end on June 30, 2016. Effective July 1, 2016 through June 30, 2018 this exemption is limited to home use only. The exemption will then revert back to both healthcare and home use on July 1, 2018.

Forms Affected

This is a per se exemption. Direct pay permits or exemption certificate are not required. If tax is charged on purchases of durable medical equipment for home use, a refund request can be submitted by filing a CST-240 Claim for Refund or Credit of Sales Tax Paid to a Vendor/Reseller.

SB 505

Purpose

Provides an exemption from motor fuel excise tax for field gas use contingent upon the payment of royalties according to any existing lease.

Details

Provides a per se exemption for field gas from both components of the motor fuel tax provided that all royalty payments have previously been paid to the mineral owners pursuant to the terms of any existing lease.

Amends W. Va. Code §11-14C-9.

Effective 90 days from March 11, 2016. First filing is January 31, 2017.

Forms Affected

The West Virginia State Tax Department will create a certificate that a taxpayer can use to verify that all royalty payments have previously been paid to the mineral owners pursuant to the terms of any existing lease.

The certificate will be posted on the web site under the Alternative Fuel Bulk End User / Field Gas link. There will be posted a letter instructing field gas users what is needed to file and to claim the exemption.

SB 1012

Purpose

The bill raises revenue for the General Revenue Fund by making four changes to the Tobacco Excise Tax effective July 1, 2016 by amending W. Va. Code §11-17-3 and 4 and by adding W. Va. Code §11-17-4b.

Details

  1. The tax on 20 cigarettes is raised to $1.20
  2. The tax on tobacco products other than cigarettes is raised to twelve percent of the wholesale price of each article.
  3. Every wholesaler, subjobber, subjobber dealer, retail dealer or vending machine operator must inventory any cigarettes, cigarette stamps and other tobacco products other than cigarettes on hand on July 1, and report and pay any additional tax due on or before August 30. Those persons who pay additional tax receive a discount of four percent.
  4. A tax on the sale of e-cigarette liquid is levied at the rate of 7.5 cents per milliliter or fraction thereof, effective July 1, 2016.

Forms Affected

See Cigarette and Other Tobacco Products Excise Tax Increase FAQ

See E-cigarette Liquids Excise Tax FAQ

HB 4009

Purpose

Provides authority and procedure for counties to enact and impose county sales and use taxes for the dedicated purpose of funding road and bridge projects.

Details

Proposed road and bridge projects must be approved by referendum before a county can impose a sales and use tax. The county sales and use tax rates cannot exceed 1%, and will be imposed in addition to the State or district sales and use tax and any municipal sales and use tax.

Forms Affected

If imposed, the county sales and use taxes would be reported on and remitted with the standard State sales and use tax form.

HB 4145

Purpose

Permits citizens to conceal carry firearms without a permit

Details

The bill permits a one­time tax credit up to $50 for the successful completion of a safety course or the fees associated with the initial application of a license to carry a concealed weapon. The credit is for cost or fees actually paid.

Forms Affected

The Tax Credit Recap Schedule (Recap, Form IT-140) of the Personal Income Tax will have an additional line for the credit. The instructions will include directions on how to claim the credit.

TSD-110 West Virginia Tax Credits will be amended to include the credit.

HB 4148

Purpose

Updates the meaning of "federal taxable income" and certain other terms in the West Virginia Corporation Net Income Tax Act.

Details

Changes the due dates for filing annual income tax returns filed on behalf of corporations from the 15th day of the 3rd month to the 15th day of the 4th month after the end of the tax year. The change in filing dates would be effective for tax years beginning on and after January 1, 2016.

Forms Affected

West Virginia Corporation Net Income Tax – Instructions

CNF-120EXT Extension Corporation Net Income Tax Return

WV-120V Corporation Net Income/Business Franchise Tax Electronic Payment Voucher and Instructions

HB 4228

Purpose

This bill allows transportation network companies to operate in this State.

Details

The prearranged rides provided by transportation network company drivers are exempt from the state consumers sales and service tax and use tax. Transportation network companies may assert an exemption from consumer sales and service tax and use tax for the purchases of tangible personal property and services directly used in transportation in accordance with West Virginia Code §11-15-9.

The transportation network company drivers, on the other hand, may not assert that exemption. No provisions of this bill are to be interpreted to restrict or affect the imposition of ad valorem property taxes, state personal income tax, state corporation net income tax, the motor fuel excise tax, or the requirements for the issuance of state business registration certificates.

Accordingly, transportation network companies and transportation network company drivers will need to obtain a business registration certificates from the State Tax Department before commencing business activities in the State.

The effective date of this bill is July 1, 2016.

Forms Affected

The Tax Department plans upon issuing a TSD on transportation network companies. The sales tax exemption for prearranged rides provided by transportation network company drivers is a per se exemption and, therefore, direct pay permits or exemption certificates are not required.

On the other hand, the sales tax exemption that transportation network companies may assert for purchases of tangible personal property and services directly used in transportation is a refundable exemption, which means that the person having the right or claim to the exemption must first pay the vendor the tax imposed and then apply to the Tax Commissioner for a refund or give the vendor his West Virginia direct pay permit number.

A refund request can be submitted by filing a CST-240 Claim for Refund or Credit of Sales Tax Paid to a Vendor/Reseller.

To register as a transportation network company or a transportation network company driver with the West Virginia State Tax Department, you must complete Application for Registration Certificate ( Form WV/BUSAPP ).

HB 4377

Purpose

The hotel occupancy tax exemption for consumers occupying a hotel room for thirty or more consecutive days has been eliminated; and excludes certain sleeping accommodations from the meaning of the term “hotel room.”

Details

The hotel occupancy tax is a tax administered, collected and enforced by local governments, and not the State Tax Department. Any questions regarding the change in this tax should be directed to the local taxing authority

Forms Affected

None.

HB 4612

Purpose

This bill expands the use of property tax increment financing and sales tax increment financing so that they may be used to fund road projects.

Details

As it relates to sales tax increment financing, this bill permits two or more county commissions, any two or more municipalities, or any combination thereof, to create a new combined economic opportunity development district.

This district would be allowed to submit a joint application for the districts and enter into one or more intergovernmental agreements between themselves and the Commissioner of Highways to share project expenses and special district excise tax collections to facilitate the construction of the projects.

The bill would also allow any county commission or municipality that has an existing economic development district to enter into intergovernmental agreements with each other to finance projects and pool tax increment and other revenues to finance projects.

The bill also permits the Commissioner of Highways to propose the creation of an economic opportunity development district by a county commission or municipal government. The Commissioner of Highways may also propose road project plans or amend road project plans.

As it relates to property tax increment financing, the bill permits combined development or redevelopment districts involving multiple jurisdictions along with the Commissioner of Highways. The bill permits county commissions or municipalities that created a development or redevelopment district to enter into one or more intergovernmental agreements with one or more other counties or municipalities to finance projects or pool tax increments and pay debt service on tax increment financing obligations.

The bill also allows the West Virginia Commissioner of Highways to propose the creation of a development or redevelopment area or district by a county commission or municipality. The Commissioner of Highways may also propose road project plans or amend road project plans.

Forms Affected

None.

HB 4705

Purpose

Adds Lottery winnings from traditional West Virginia lottery games (such as Powerball, Daily 3 and Scratch Off Tickets) as a source of West Virginia income for nonresident individuals.

Details

Traditional lottery prizes purchased in West Virginia by nonresidents will be subject to West Virginia’s Personal Income tax.

Forms Affected

Adds Lottery winnings as a source of West Virginia income for nonresidents.