W. Va. Code R. § 110-19-3

Current through Register Vol. XLI, No. 50, December 13, 2024

Section 110-19-3 - Excise Tax On Bottled Soft Drinks, Syrups And Dry Mixtures; Disposition Thereof

3.1. An excise tax is levied and imposed by W. Va. Code '11-19-2 upon the sale, use, handling or distribution of all bottled soft drinks, soft drink syrups and powders, whether manufactured within or without this State, as follows:

3.1.1. On each bottled soft drink, a tax of one cent ($.01) on each sixteen and nine-tenths (16.9) fluid ounces, or fraction thereof, or on each one-half (.5) liter, or fraction thereof contained therein.

3.1.2. On each gallon of soft drink syrup, a tax of eighty cents ($.80), and in like ratio on each part gallon thereof, or on each four (4) liters of soft drink syrup a tax of eighty-four cents ($.84), and in like ratio on each part four (4) liters thereof.

3.1.3. On each ounce by weight of dry mixture (powder) or fraction thereof used for making soft drinks, a tax of one cent ($.01) or on each 28.35 grams, or fraction thereof, a tax of one cent ($.01).

3.2. Any person manufacturing or producing within this State any bottled soft drink or soft drink syrup or powder for sale within this State and any distributor, wholesale dealer or retail dealer or any other person who is the original consignee of any bottled soft drink or soft drink syrup or powder manufactured or produced outside this State, or who brings such drinks or syrups or powders into this State, shall be liable for the excise tax imposed. The excise tax imposed shall not be collected more than once in respect to any bottled soft drink or soft drink syrup manufactured, sold, used or distributed in this State.

3.2.1. Base products. - Base products such as hot chocolate flavored drink mix, flavored milk shake bases, concentrated products to which milk or other liquid (including water) is added to make a syrup used to complete a soft drink, and all like items or products, will be taxed as syrups.

3.2.2. Powders. - Powders includes compressed powders, crystals, granules or tablets from which soft drinks can be made.

3.2.3. Powders converted to syrup. - Whenever a powder is converted to a syrup, the tax per ounce on such powder will be computed in direct ratio to the quantity of ready-to-use syrup produced. An example is that of cocoa powder - generally, one (1) pound of cocoa powder is used in the manufacture of a gallon of chocolate syrup. Because the tax on a gallon of syrup is eighty cents ($.80) and sixteen (16) ounces of powder is required to produce one (1) gallon of syrup, the tax levied in this instance would be at the rate of five cents ($.05) per ounce on the powder.

3.2.4. Powders converted to soft drinks. - When a powder is used to make a soft drink without being converted into a syrup, the rate of tax will be one cent ($.01) per ounce, or fraction thereof, of the powder weight.

3.3. Exemptions. - The following are exempt from the soft drinks tax:

3.3.1. Fluid milk to which no flavoring has been added.

3.3.2. Natural undiluted fruit juice or vegetable juice.

3.3.2.1. This exemption only applies to such juices which are one hundred percent (100%) pure, and which contain no flavorings, preservatives, carbonation or any other additives other than artifical or natural sweeteners.

Examples:

3.3.2.1.a. Even if orange juice is labeled as "100% pure," it would not be exempt if in fact it is not 100% pure. Orange juice which is 100% pure, except for the addition of more water to it than would occur if the juice were freshly squeezed, would be diluted with water, and so would not be "natural undiluted fruit juice" and thus would not be exempt.

3.3.2.1.b. Even if tomato juice is otherwise pure, it would not be 100% pure if salt or any other flavoring or substance other than sweeteners has been added subsequent to the harvesting of the tomatoes used to produce the juice.

3.3.2.1.c. Fruit juice "sparklers" which sparkle as a result of artificial carbonation are not exempt even if otherwise pure.

3.3.2.1.d. A mixture of two or more juices, such as orange and pineapple juices, would be exempt only if the resulting product consists solely of 100% pure juices and contains no additives of any kind other than sweeteners.

3.3.3. Plain water which is uncarbonated.

3.3.4. Water which is naturally carbonated before it is removed from the ground. See also Section 2.1.1 of these regulations.

3.3.4.1. In order for water to be considered naturally carbonated, all of the carbon dioxide which is in the water when it is marketed must have been (1) removed from the same ground as the water and (2) present in the water before the water was removed from the ground. Even if the carbon dioxide was removed from the same ground as the water and was present to some degree in the water before the water is removed from the ground, the water would not be naturally carbonated if any additional amounts of carbon dioxide are added to the water to reach a desired level of carbonation.

W. Va. Code R. § 110-19-3