West Virginia Code of State Rules › Agency 110 - Tax › Title 110 - LEGISLATIVE RULE STATE TAX DEPARTMENT › Series 110-26 - Municipal Business And Occupational Tax › Section 110-26-2b - Manufacturing, Compounding Or Preparing Products; Processing Of Food Excepted

Current through Register Vol. XLI, No. 28, July 12, 2024
2b.1. Manufacturers
				of products.
2b.1.1. For purposes of these
				rules and regulations, the word "Manufacturer" shall mean and include, but not
				limited to, every person engaging within this State in the business of
				manufacturing, compounding or preparing for sale, profit or commercial use any
				article, substance or commodity. The term "To Manufacture" embraces all
				activities of a commercial or industrial nature wherein labor or skill is
				applied, by hand or machinery, to materials so that as a result thereof a new,
				different or useful substance or article of tangible personal property is
				produced for sale, profit or commercial or industrial use, and shall include
				the production or fabrication of special made or custom made articles. To
				manufacture also means producing articles from raw materials or prepared
				materials by giving these matters new forms, quantities, properties, or
				combinations. It includes such activities as making, fabricating, processing,
				refining, mixing, compounding, etc. The term to manufacture does not include
				activities which are merely incidental to nonmanufacturing activities.
				Therefore, the following do not constitute manufacturing, compounding, or
				preparing for sale: cooking and serving of food by a restaurant, repairing and
				reconditioning of tangible personal property owned by others, etc.
2b.1.2. The phrase "Manufacturing,
				Compounding or Preparing for Sale" means a process whereby a person from his
				own materials or ingredients manufactures for sale, or for commercial or
				industrial use any article, substance or commodity either directly, or by
				contracting with others for the necessary labor and mechanical
				services.
2b.1.3. Persons engaged
				in manufacturing compounding or preparing products shall report the gross
				proceeds derived therefrom under the manufacturing classification on the
				municipal business and occupation tax returns. If it is not possible for the
				manufacturer to determine gross proceeds of sale, he must determine the value
				of his products by employing the applicable rule set forth in Section 2.3 of
				these rules and regulations. The measure of the municipal business and
				occupation tax shall be the value (said value, whenever possible, shall be
				determined by gross proceeds of sale) of the entire production within the
				municipality, regardless of the place of sale or the fact that delivery may be
				made to points outside the municipality.
2b.1.4. A person who manufactures final
				completed products and does not make sale of the same but uses or consumes said
				products in his business shall report the value of such products under the
				manufacturing classification on the municipal business and occupation tax
				return. In determining the value of such final completed products, the taxpayer
				must adhere to Section 2.3 of these rules.
2b.1.5. Where the relationship between the
				manufacturer of products and the purchaser thereof is such that the gross
				proceeds of sale are not indicative of the true value of the manufactured
				articles, the taxpayer shall determine value by application of the proper rule
				set forth in Section 2.3 of these rules and regulations.
2b.1.6. Persons engaged in the business of
				manufacturing, compounding or preparing for sale, profit or commercial use, any
				article, substance or commodity and the same is sold at retail within the
				municipality shall report the gross proceeds derived from such sale under the
				retail classification, and the value of the same shall be also reported under
				the manufacturing classification.
2b.1.7. Where a person manufactures,
				compounds or prepares for sale, profit or commercial use, products, substances
				or commodities and makes sale of the same at wholesale within the municipality,
				such person shall report the gross income derived from the sale at wholesale
				under the manufacturing classification, and the value of the same shall be also
				reported under the wholesale sales classification if the sale is made in the
				municipality and the municipal business and occupation tax ordinance so
				requires.