Current through Register Vol. XLI, No. 38, September 20, 2024
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.
