W. Va. Code R. § 110-19-6

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

Section 110-19-6 - Purchase Of Tax Stamps Or Tax Crowns; Discounts And Commissions; Bonds; Refunds And Statute Of Limitations

6.1. Manufacturers or distributors of crowns may be required to furnish bond to ensure faithful compliance with such regulations. Any person desiring to purchase such crowns shall obtain from the Commissioner an authorization to do so, which shall specify the number of crowns to be purchased, and upon shipment thereof the manufacturer shall transmit to the Commissioner a copy of the invoice of such shipment. The Commissioner will not authorize the purchase of crowns by any person who is in default in the payment of any tax required by W. Va. Code '11-19-1 et seq. and this regulation, or who has not obtained a West Virginia business registration certificate.

6.2. The Commissioner shall sell the tax stamps required by W. Va. Code '11-19-1 et seq. and this regulation, or may authorize any sheriff, or any bank or trust company in this State, to sell such stamps as his deputy, and may allow as a commission a fee of one half of one percent (.5%) of the face value of all stamps sold by such deputy. In the sale of such stamps the Commissioner shall allow the following discounts:

6.2.1. On a sale of less than twenty-five dollars ($25), no discount; on a sale of twenty-five dollars ($25) or over and less than fifty dollars ($50), a discount of five percent (5%); and on a sale of fifty dollars ($50) or more, a discount of ten percent (10%).

6.3. In the case of stamps, the tax imposed by W. Va. Code '11-19-1 et seq. and this regulation shall be paid in advance at the time the stamps are purchased. In the case of tax crowns, the tax shall be paid in advance at the time the Commissioner authorizes the purchase of such tax crowns, unless the purchaser applies for and obtains credit as provided in Section 6.4.

6.4. Bonds. - Whenever any person applies for an authorization to purchase tax crowns, he may apply for an extension of credit on the tax due with respect to such crowns, and if he files a bond in the form prescribed by the Commissioner, with satisfactory corporate surety, in an amount not less than twenty-five percent (25%) more than the tax due with respect to the tax crowns to be purchased, the Commissioner shall issue the necessary authorization. Any person who obtains such credit shall, on or before the fifteenth (15th) day of each month, file with the Commissioner on forms prescribed by him a return stating the number of tax crowns used by such person during the preceding month, and he shall at the same time pay to the Commissioner the tax due on the crowns so used.

6.4.1. Duration of bond. - The West Virginia soft drinks tax crown purchase bond is to continue in full force and effect so long as the principal remains subject to liability for said tax, and an annual renewal certificate is required on the anniversary date of the bond.

6.4.2. Cancellation of bond. - If the bonded person or the bonding company elects to cancel the bonds, at least sixty (60) days notice of intent shall be given to the Commissioner in writing. Should the Commissioner elect to discontinue any further extension of credit and desire a cancellation of the contract, he may proceed with the dissolution upon written notice to both parties, terminating the bond sixty (60) days from date of cancellation notice. The Commissioner will notify both parties of the dissolution by certified mail.

6.5. Discount. - The Commissioner shall allow to each purchaser of tax crowns, whether for cash or credit, a discount of twelve and one half percent (12.5%) of the tax value of such crowns. The tax value of such crowns for purposes of determining such discount shall be the actual gross tax value of the crowns used in manufacturing, including the tax value of crowns lost or destroyed in manufacturing, and shall not be based on gross receipts from sales. Such discount, and the discount allowed on the sale of tax stamps, shall be in lieu of the allowance of any claim for refund by reason of the breakage or destruction of containers stamped or crowned as provided in W. Va. Code '11-19-1 et seq. and this regulation, the spoilage of the soft drinks or syrups, or the loss or destruction of tax stamps or tax crowns.

6.5.1. Bottlers taking a credit of the twelve and one-half percent (12.5%) discount on their monthly soft drink tax return must include the tax for the indicia lost during manufacturing since this loss is compensated for by the discount allowed at the time of purchase or use of the indicia.

6.6. Refunds. - Unused Soft Drink Stamps may be returned to the Tax Department for a refund, less the appropriate discount allowed at the time of purchase: Provided, That a refund application is filed for the amount returned and the correct amount is deducted from the closing inventory on the monthly Soft Drink Tax Return.

6.6.1. When the tax stamps or crowns or soft drinks, soft drink powders, soft drink syrups or soft drink invoice products from the representative list referenced in Section 14 of the these regulations, upon which tax has been paid are destroyed by fire, lightning or flood; and when soft drinks, syrups or powders upon which tax has been paid to the State of West Virginia are exported from this State or are required to be destroyed pursuant to federal or State order, the taxpayer may file a claim for refund for an amount equal to the amount of tax actually paid for such stamps, crowns or invoice products. The Commissioner shall cause a refund to be made only when a claim for refund is filed within one hundred and eighty (180) days from the date the tax stamps or crowns were destroyed or the soft drink product upon which tax was paid were destroyed or exported from this State. Any claim for refund not timely filed shall not be construed to be or to constitute a moral obligation of this State for payment. Such claim for refund shall also be subject to the provisions of W. Va. Code '11-10-14 et seq. At the election of the taxpayer, the amount of any refund may be established as a credit. The amount refunded or credited shall not be subject to the interest provisions of W. Va. Code '11-10-17(d).

6.6.2. No refund will be given on soft drinks or tax indicia for breakage or destruction of stamped or crowned containers, spoilation of soft drinks or syrups, or the loss or destruction of tax stamps or crowns while in the process of manufacturing.

6.7. Tax paid crowns. - Any person using tax paid crowns as evidence of the payment of the soft drinks tax must comply with all requirements established by the Commissioner.

6.7.1. No soft drink tax crowns of any style may be sold to any soft drink manufacturer by any crown manufacturer without authorization from the Commissioner. Authorization will be made by the issuance of an official Soft Drinks Tax Crown Certificate. The certificate will entitle the soft drink manufacturer to receive from the crown manufacturer the quantity of crowns specified.

6.7.2. The crown manufacturer shall be responsible for the safe keeping of all crowns manufactured for sale until such time as they are delivered to the purchaser in accordance with the certificate issued by the Commissioner specifying the exact amount of crowns authorized. Crowns shall not be sold or delivered in excess of the exact number specified by the certificate.

6.7.3. To secure delivery of crowns, soft drinks manufacturers are required to pay the tax in full, or have executed a bond in an amount not less than one hundred twenty-five percent (125%) of the tax involved, represented by the number of crowns desired or secure a certificate authorizing the crown manufacturer to make delivery of the number of crowns specified by the certificate. Nothing contained herein shall prevent soft drink manufacturers from purchasing crowns on both cash basis (prepaid) and bond account at the same time. The crown company or soft drinks manufacturer will be liable for the tax value of the crowns delivered in excess of the number of crowns indicated by the certificate.

6.7.4. Certificate release numbers will be issued by the Commissioner on soft drink tax requisition forms for soft drink manufacturers who hold a West Virginia Business Registration Certificate, (W. Va. Code '11-12-1 et seq.) indicating the number of crowns, the crown manufacturer and the denomination of crowns desired. If no bond has been executed and filed with the Commissioner, the soft drink tax requisition form must include remittance for the full tax less discount.

6.7.5. All crown manufacturers authorized by the Commissioner to manufacture official West Virginia crowns will be required to conform to such special regulations or instructions as may be issued. Crown manufacturers will be required to file monthly reports on forms prescribed and furnished by the Commissioner. All records pertaining thereto are subject to examination by the Commissioner.

6.7.5.1. Tax paid crowns shall meet the following specifications. The outline of the State of West Virginia shall appear around the face of the crown at any place where, by reason of other display matter on the crown, this outline would not be obscure; or, it shall appear apart from other display matter in such a manner that it could be easily distinguished at a glance as evidence of tax payment. The overall dimensions of the outline map of West Virginia shall be not less than one-quarter (1/4) of an inch nor more than five-sixteenths (5/16) of an inch from the uppermost to the lowermost outside of the outline boundary or from one side to the other at the greatest width of the outline map. The line of the outline boundary map shall be not less than one sixty-fourth (1/64) of an inch in width and shall be a single line.

6.7.5.2. Every design for soft drink tax paid crowns shall be approved in writing by the Tax Commissioner before any such crowns shall be manufactured, sold or distributed.

6.7.6. All soft drink manufacturers desiring to use crowns will be required to conform to the regulations of the Commissioner with regard to such crowns. All records of the soft drinks manufacturer pertaining to the purchase and use of crowns are subject to examination by the Commissioner.

6.7.7. All soft drink manufacturers not operating on a bond or credit account are required to file a monthly report. These reports are due in the office of the Commissioner on or before the fifteenth (15th) day of the month showing the transactions of the previous month. The reports must reflect invoice payment method schedules if applicable, the beginning inventory, the various purchases, the sales made, the stamps purchased and applied against sales, and closing inventories.

6.7.8. All soft drink manufacturers who operate on both cash basis and bond account are required to file a monthly report. These reports are due in the Commissioner's office on or before the fifteenth (15th) day of the month showing the transactions of the previous month.

6.7.9. The Commissioner will not authorize the purchase of crowns by any person who is in default in the filing of monthly reports and the tax due on the tax indicia.

6.7.10. Canning or packing plants. - In the event a manufacturer of soft drink items, subject to the West Virginia soft drinks tax, elects to arrange for a canner to bottle, can or pack his products, the manufacturer shall apply to the Commissioner for crown certificates and pay the applicable tax or furnish a surety bond as provided in W. Va. Code '11-19-1 et seq. The manufacturer shall file monthly reports on forms prescribed by the Commissioner on or before the fifteenth (15th) day of the month showing the transactions of the previous month.

6.7.11. Soft drink manufacturing companies located outside of West Virginia who have sales in West Virginia may secure crown certificates and pay the tax. The soft drink manufacturer located outside of West Virginia will be allowed credit on their monthly soft drink tax return for out-of-state sales of soft drink product with West Virginia tax indicia affixed.

6.7.12. The soft drinks manufacturer shall obtain permission from the Commissioner to return soft drinks tax crowns to the crown manufacturer. The crown manufacturer is prohibited from accepting such returns without written authorization from the Commissioner.

6.7.13. The crown manufacturer may not reject any official or tax paid crowns from his inventory without written notice to the Commissioner.

6.7.14. The exchanging, borrowing or purchasing of crowns between soft drink manufacturers is strictly prohibited.

6.7.15. Any crown for which credit is being claimed shall be stored until the exact count is verified by the Commissioner, after which credit may be taken in the crown inventory. The Commissioner will not authorize the purchase of crowns by any person who is in default in the payment of tax or who has not filed his monthly report as required. Any person who obtains credit shall file a report and remit the tax. Such report and tax is due in the Commissioner's office on or before the fifteenth (15th) day of the month showing transactions for the preceding month.

W. Va. Code R. § 110-19-6