West Virginia Code of State Rules › Agency 110 - Tax › Title 110 - LEGISLATIVE RULE STATE TAX DEPARTMENT › Series 110-13 - Business And Occupational Tax › Section 110-13-2d - Public Service or Utility Business

Current through Register Vol. XLI, No. 28, July 12, 2024
2d.1. Persons engaged within this State in
				certain public service or utility business are taxable on the privilege of
				engaging in the businesses and shall report the gross income from the business
				activities under the appropriate classification on the business and occupation
				tax form. Only gross income derived from the supplying of public services shall
				be reported under the public service classifications.
2d.2. There are certain persons who are not
				subject to tax under W. Va. Code '11-13-2d
				even though they may be subject to the control of this State's Public Service
				Commission. These statutorily exempt persons are railroads, railroad car
				companies, express companies, pipeline companies, motor carriers, telephone and
				telegraph companies and water carriers by steamboat or steamship.
				Municipally-owned water companies and municipally-owned electric distribution
				systems are not subject to the tax under W. Va. Code '11-13-2d.
2d.3. Upon any person engaged or continuing
				within this State in any public service or utility business, except railroad,
				railroad car, express, pipeline, telephone and telegraph companies, water
				carriers by steamboat or steamship and motor carriers, the tax due under in W.
				Va. Code '
				11-13-2d
				is equal to the gross income of the business derived from the activity or
				activities multiplied by the respective rates as follows:
2d.3.1. Street and interurban and electric
				railways, one and four-tenths percent (1.4%);
2d.3.2. Water companies, four and four-tenths
				percent (4.4%), except as to income received by municipally owned water
				plants;
2d.3.3. Electric light and
				power companies:
2d.3.3.1. A person who
				generates electric power in this State and then sells that power generation in
				regulated transactions in this State, shall pay tax at the rate of four percent
				(4%) on sales and demand charges derived from the sale of the power in this
				State, except as otherwise provided in this rule.
2d.3.3.2. A person who sells electric power
				in this State in regulated transactions which that person does not generate in
				this State, shall pay tax at the rate of three percent (3%) on sales and demand
				charges derived from the sale of the power in this State, except as otherwise
				provided in this rule.
2d.3.3.3.
				Notwithstanding the provisions of Sections 2.3.3.1 and 2.3.3.2 of this rule, if
				electric power is sold in this State:
(1) to
				a plant location of a customer engaged in manufacturing activity and the
				contract demand or usage at the plant location exceeds two hundred thousand
				kilowatts per hour per year or two hundred thousand kilowatts per hour in a
				year, then the rate of tax on the sales and demand charges derived from the
				sales is two percent (2%);
(2) to a
				plant location in this State that consumes the power in an electrolytic process
				for the manufacture of chlorine, then to the extent the electric power consumed
				in the electrolytic process is separately metered from all other electric power
				consumed at that location, the demand charges for the power is exempt from the
				tax imposed by W. Va. Code ' 1-13-2;
(3) to a plant location in this State that
				consumes the power in the manufacture of ferroalloy, then to the extent the
				electric power consumed in manufacturing ferroalloy is separately metered from
				all other electric power consumed at that location, the sales and demand
				charges for the power are exempt from the tax imposed by W. Va. Code
				'11-13-2;
				or
(4) by a municipally owned plant
				producing or purchasing electricity and distributing the same, the income it
				receives from the power is exempt from the tax imposed by W. Va. Code
				'11-13-2.
2d.3.3.4. As used in this Section,
				the term "ferroalloy" means any of the various alloys of iron and one or more
				other elements used as a raw material in the production of steel, but does not
				include the final production of steel.
2d.3.4. Natural gas companies shall pay tax
				at the rate of four and twenty-nine hundredths percent (4.29%) on the gross
				income, except (1) that the sale of natural gas under W. Va. Code
				'11-13-2d
				is exempt from the tax due under W. Va. Code '11-13-2d
				to the extent that the natural gas is separately metered and is gas from which
				the purchaser derives hydrogen and carbon monoxide for use in the manufacture
				of chemicals in this State, and the full economic benefit of the exception
				provided in this subdivision to the taxpayer shall be passed on to the
				purchaser of the natural gas and (2) that there shall be no exemption for the
				sale of any natural gas from which the purchaser derives carbon monoxide or
				hydrogen for the purpose of resale;
2d.3.5. Toll bridge companies shall pay tax
				at the rate of four and twenty-nine hundredths percent (4.29%); and
2d.3.6. Upon all other public service or
				utility business shall pay tax at the rate of two and eighty-six hundredths
				percent (2.86%).