Tenth Biennial Report of the State Tax Commissioner, for the fiscal years beginning
July 1,
1922, and ending June 30, 1924. Grant P. Hall, State Tax Commissioner.
GASOLINE TAX
The Gasoline Tax Law was passed April 27, 1923, and became effective ninety days from passage, - July 26, 1923. A tax of two cents on. each gallon of gasoline sold in this State is imposed, the tax to apply on each gallon but once. Gasoline purchased or obtained outside West Virginia and used within the State is also made subject to the tax. The purchaser is held liable for the tax on all interstate shipments of gasoline from points outside West Virginia to points within the State, but the seller is privileged to assume and pay the tax on such shipments. Refiners are required to pay the tax on all sales made to retail dealers and to consumers, but are authorized by the Tax Commissioner's rulings to sell gasoline to wholesale dealers and jobbers, the tax to be assumed and paid by the purchaser. Dealers are not required to pay the tax on gasoline used in their own motor equipment in the conduct of their business (the subject of tax being the privilege to sell), and, where wholesale dealers and jobbers handle gasoline on which the tax has been previously paid, such dealers are allowed refunds to cover the tax paid on gasoline used and gasoline lost by leakage and evaporation. Refunds are also allowed to wholesalers to cover the tax previously paid on gasoline sold and delivered or sold and shipped outside this State. .
The tax applies on all gasoline sold in West Virginia regardless of the purpose for which same is to be used. No deductions are allowed on account of gasoline sold to be used in the operation of motor boats, agricultural tractors, stationary gasoline engines, gasoline used in the process of manufacturing or dry cleaning, or in air compressors, etc.; and no deductions are allowed on account of gasoline sold to the Federal Government.
All taxes collected under the provisions of this law are required to be paid into the State Treasury and may be used only for the purpose of the reconstruction, maintenance, and repair of roads and highways, and for the payment of the interest on State bonds issued for road purposes.
Total collections under the Gasoline Tax Law to date, accruing for the State's fiscal year ended June 30, 1924, amount to $1,037,393.64. It is estimated that there is an additional tax of $10,000.00 accrued for the year 1924 uncollected at this time.
As the law became effective on sales made on and after July 26, 1923, the above figures are accruals for a period of eleven months and six days only. Based on the above figures, it is estimated that the tax for the full year would have been approximately $1,150,000.00.
The collections by months are as follows:
Accrued for the period from July 26, 1923, to July 31, 1923.............. $ 18,763.13
Accrued for the month of August........................................................ 114,852.36
Accrued for the month of September.................................................. 120,058.13
Accrued for the month of October....................................................... 118,837.63
Accrued for the month of November..................................................... 89,491.94
Accrued for the month of December..................................................... 76,754.29
Accrued for the month of January ........................................................ 61,919.31
Accrued for the month of February....................................................... 48,345.69
Accrued for the month of March............................................................ 63,167.62
Accrued for the month of April............................................................... 93,954.80
Accrued for the month of May............................................................. 105,322.01
Accrued for the month of June............................................................ 125,926.63
Total................................................................................................$1,037,393.54
With the resumption of better trade conditions in the coal fields, the completion of additional hard roads, and the increase in the number of motor vehicles operated in the State, the revenue from this source for the fiscal year ending June 30, 1925, will probably .exceed $1,200,000.00.