West Virginia Code of State Rules › Agency 110 - Tax › Title 110 - LEGISLATIVE RULE STATE TAX DEPARTMENT › Series 110-13AC - Reduced Severance Tax Rates for Thermal or Steam Coal › Section 110-13AC-3 - Definitions

Current through Register Vol. XLI, No. 28, July 12, 2024
Unless a specific definition is provided in this section,
				  terms used in this rule are defined as provided in W. Va. Code §
									11-13A-1,
et
				  seq
. and legislative rule W. Va. Code St. R. § 110-13A-1,
et seq.
, unless the context in which the term is used clearly
				  requires a different meaning. The following terms shall have the meaning
				  ascribed herein and shall apply in the singular as well as in the
				  plural.
3.1. Coal. -- The term "coal"
				means and includes any material composed predominantly of a solid, brittle,
				stratified, combustible carbonaceous rock formed by the decomposition of
				vegetation, containing varying quantities of the elements of carbon, hydrogen,
				oxygen and nitrogen. "Coal" includes but is not limited to peat, lignite,
				bituminous, anthracite and various intermediary forms of coal.
3.2. Thermal or steam coal. -- The term
				"thermal or steam coal" means coal sold for the purpose of generating
				electricity. For coal to qualify as thermal or steam coal, the coal must be
				sold by the taxpayer claiming the reduced severance tax rate either directly to
				an electric power company for the purpose of generating or producing
				electricity or by using services of a broker to sell to an electric power
				company for the purpose of generating or producing electricity.
3.3. Electric power company. -- The term
				"electric power company" means a company engaged in the business of
				manufacturing, generating, supplying, or manufacturing, generating and
				supplying electricity for light, heat, or power to consumers or for its own
				use.
3.4. Sale. -- The term "sale"
				includes any transfer of the ownership or title to property, whether for money
				or in exchange for other property or services, or any combination
				thereof.
3.5. Broker. -- For the
				limited purposes of this Rule, a "broker" is an agent who sells goods or
				property for a principal, or a person who functions as an intermediary between
				two parties in order to arrange or negotiate an agreement or contract. A broker
				may also acquire title to or ownership of the goods or property and resell
				those goods or property to a third-party. References in this Rule to sales of
				coal to an electric power company include sales by the producer of the coal
				made directly to the electric power company or to the electric power company
				through the services of a broker where the broker is:
(a) acting as agent for the producer of the
				coal or
(b) where the broker has
				purchased coal from the producer and is reselling it to an electric power
				company.
Sales from a producer to other entities, such as third-party
				  sellers, marketers, processors, or blenders, may be considered a sale to a
				  broker under this rule, when those entities take title of the coal from the
				  producer, sell the coal to an electric power company to be used in generating
				  or producing electricity, and those entities provide an attestation of that
				  sale as set forth in section 110-13AC-6 of this
				  rule.