reglab/statecodes huggingface dataset:
West Virginia Code of State Rules › Agency 110 - Tax › Title 110 - LEGISLATIVE RULE STATE TAX DEPARTMENT › Series 110-23 - Business Franchise Tax › Section 110-23-17 - Credits Against Tax

Current through Register Vol. XLI, No. 28, July 12, 2024
17.1. On
				and after the first day of July, 1988, a credit shall be allowed against the
				tax imposed by Section '11-23-1 et seq. of the West Virginia Code equal to the
				amount of franchise tax liability due under the said Section '11-23-1 et seq.
				of the West Virginia Code, (determined before application of credits)
				multiplied by a fraction, the numerator of which is the gross income of the
				business subject to tax under Article thirteen-a of Chapter eleven of the West
				Virginia Code and the denominator of which is the total amount of gross
				receipts derived from or attributable to all of the taxpayer's activity in West
				Virginia.
17.1.1. Expiration of credit. --
				The credit authorized in Section '11-23-17(a) of the West Virginia Code and
				Section 17.1 of these regulations shall expire and not be authorized or allowed
				for any taxable month beginning on or after March 1, 1989. For taxable years
				beginning before March 1, 1989 and ending after March 1, 1989, the annual
				credit heretofore allowed by Section '11-23-17(a) of the West Virginia Code and
				Section 17.1 of these regulations shall be prorated by the number of months in
				the taxable year, and only that portion of the credit attributable to months
				ending prior to March 1, 1989, shall be allowable.
West Virginia Code of State Rules › Agency 110 - Tax › Title 110 - LEGISLATIVE RULE STATE TAX DEPARTMENT › Series 110-23 - Business Franchise Tax › Section 110-23-17a - Tax Credit For Business Investment And Jobs Expansion; Industrial Expansion And Revitalization; Eligible Research And Development Projects; Coal Loading Facilities And Consumers Sales And Service Tax And Use Tax Paid

Current through Register Vol. XLI, No. 28, July 12, 2024
17a.1. There shall
				be allowed as credit against the tax imposed by the Business Franchise Tax Act
				for the taxable year the amount determined under Sections ''11-13C-1 et seq.,
				11-13D-1 et seq. and 11-13E-1 et seq. of the West Virginia Code relating
				respectively to:
17a.1.1. The tax credit for
				business investment and jobs expansion;
17a.1.2. The tax credit for industrial
				expansion and revitalization and eligible research and development projects;
				and
17a.1.3. The tax credit for
				coal loading facilities.
West Virginia Code of State Rules › Agency 110 - Tax › Title 110 - LEGISLATIVE RULE STATE TAX DEPARTMENT › Series 110-23 - Business Franchise Tax › Section 110-23-18 - Tax Under Section 11-23-1 Et Seq. Of The West Virginia Code Is In Addition To All Other Taxes

Current through Register Vol. XLI, No. 28, July 12, 2024
The returns, requirements and taxes set forth and imposed
				  under Section '11-23-1 et seq. of the West Virginia Code, the Business
				  Franchise Tax Act, shall be in addition to all other reports, requirements,
				  taxes and duties set forth and imposed by the State of West
				  Virginia.
West Virginia Code of State Rules › Agency 110 - Tax › Title 110 - LEGISLATIVE RULE STATE TAX DEPARTMENT › Series 110-23 - Business Franchise Tax › Section 110-23-19 - Records

Current through Register Vol. XLI, No. 28, July 12, 2024
19.1. Every
				taxpayer liable for reporting or paying taxes under the Business Franchise Tax
				Act shall keep such records, receipts, invoices and other pertinent papers and
				documents in such form as the Tax Commissioner may require by
				instruction.
19.2. Every taxpayer
				shall keep such records for not less than three (3) years after the annual
				return is filed under Section '11-23-1 et seq. of the West Virginia Code,
				unless the Tax Commissioner in writing authorizes their earlier destruction. An
				extension of time for making an assessment or filing a claim for refund shall
				automatically extend the time period for keeping the records for all years
				subject to assessment or refund covered in the agreement for extension of time
				for making an assessment.
West Virginia Code of State Rules › Agency 110 - Tax › Title 110 - LEGISLATIVE RULE STATE TAX DEPARTMENT › Series 110-23 - Business Franchise Tax › Section 110-23-20 - Criminal Penalties

Current through Register Vol. XLI, No. 28, July 12, 2024
Each and every provision of the West Virginia Tax Crimes and
				  Penalties Act set forth in Section '11-9-1 et seq. of the West Virginia Code
				  shall apply to the business franchise tax imposed under Section '11-23-1 et
				  seq. of the West Virginia Code with like effect as if the said act were
				  applicable only to the tax imposed by the said Section '11-23-1 et seq. of the
				  West Virginia Code and were set forth in extenso in the said Section '11-23-1
				  et seq. of the West Virginia Code.
West Virginia Code of State Rules › Agency 110 - Tax › Title 110 - LEGISLATIVE RULE STATE TAX DEPARTMENT › Series 110-23 - Business Franchise Tax › Section 110-23-21 - General Procedure And Administration

Current through Register Vol. XLI, No. 28, July 12, 2024
Each and every provision of the West Virginia Tax Procedure
				  and Administration Act set forth in Section '11-10-1 et seq. of the West
				  Virginia Code, shall apply to the business franchise tax imposed by Section
				  '11-23-1 et seq. of the West Virginia Code with like effect as if the said act
				  were applicable only to the tax imposed by the said Section '11-23-1 et seq. of
				  the West Virginia Code and were set forth in extenso in the said Section
				  '11-23-1 et seq. of the West Virginia Code.
West Virginia Code of State Rules › Agency 110 - Tax › Title 110 - LEGISLATIVE RULE STATE TAX DEPARTMENT › Series 110-23 - Business Franchise Tax › Section 110-23-22 - Severability

Current through Register Vol. XLI, No. 28, July 12, 2024
If any provision of Section '11-23-1 et seq. of the West
				  Virginia Code or the application thereof shall for any reason be adjudged by
				  any court of competent jurisdiction to be invalid, such judgment shall not
				  affect, impair or invalidate the remainder of the said Section '11-23-1 et seq.
				  of the West Virginia Code, but shall be confined in its operation to the
				  provision thereof directly involved in the controversy in which such judgments
				  shall have been rendered, and the applicability of such provision to other
				  persons or circumstances shall not be affected thereby.
West Virginia Code of State Rules › Agency 110 - Tax › Title 110 - LEGISLATIVE RULE STATE TAX DEPARTMENT › Series 110-23 - Business Franchise Tax › Section 110-23-25 - Credit for consumers sales and service tax and use tax paid

Current through Register Vol. XLI, No. 28, July 12, 2024
The tax imposed by W. Va. Code '11-23-1 et
				  seq., shall be subject to the credit set forth in W. Va. Code '11-15-9b
				  and the credit set forth in W. Va. Code '11- 15A-3b. See Section 17a.3 of these
				  regulations.
West Virginia Code of State Rules › Agency 110 - Tax › Title 110 - LEGISLATIVE RULE STATE TAX DEPARTMENT › Series 110-23 - Business Franchise Tax › Section 110-23-27 - Credit for Franchise Tax Paid to Another State by A Financial Organization

Current through Register Vol. XLI, No. 28, July 12, 2024
27.1. Effective for
				taxable years beginning on or after January 1, 1991, and notwithstanding any
				provisions of the West Virginia Code to the contrary, any financial
				organization, having its commercial domicile in this state shall be allowed a
				credit against the tax imposed by W. Va. Code '11-23-1 et
				seq., for any taxable year for taxes paid to another state or political
				subdivision thereof. That credit shall be equal in amount to the lesser of:
27.1.1. The taxes such financial organization
				shall actually have paid, which payments were made on or before the filing date
				of the annual return required by W. Va. Code '11-23-1 et
				seq., to any other state or political subdivision thereof, and which tax was
				based upon or measured by the financial organization's capital and was paid
				with respect to the same taxable year; or
27.1.2. The portion of the tax actually paid
				that the financial organization would have paid if the rate of tax imposed by
				W. Va. Code article 23, chapter 11, is applied to the tax base determined under
				the law of such other state or political subdivision.
West Virginia Code of State Rules › Agency 110 - Tax › Title 110 - LEGISLATIVE RULE STATE TAX DEPARTMENT › Series 110-23 - Business Franchise Tax › Section 110-23-28 - Notice of Business Activities Report

Current through Register Vol. XLI, No. 28, July 12, 2024
28.1. Except as provided by section 28.2 of
				these regulations, for each taxable year every corporation and partnership that
				carries on any business activity or owns or maintains property in West Virginia
				for the taxable year shall file a business activity report with the Tax
				Commissioner. The report must be filed on or before the fifteenth day of the
				fourth month after the end of the corporation or partnership's taxable year.
				The filing of a report shall not be a factor in determining whether a
				corporation or partnership is subject to taxation by this state.
28.2. A corporation or partnership is not
				required to file a report under this section 28 and the subsections thereof of
				these regulations if:
28.2.1. During the
				taxable year for which a report is due, the corporation or partnership is
				registered to engage in business in West Virginia in accordance with the
				provisions of W. Va. Code '11-12-1 et
				seq.;
28.2.2. A tax return was
				filed for that taxable year for any of the taxes subject to the provisions of
				W. Va. Code '11-10-1 et
				seq;
28.2.3. The corporation or
				partnership is a type of organization expressly exempted from taxation by West
				Virginia or federal statute or regulation; or
28.2.4. The activities or interests in
				property owned in this state by the corporation or partnership consist solely
				of activities or property expressly exempted from taxation by West Virginia or
				federal statute or regulation.
West Virginia Code of State Rules › Agency 110 - Tax › Title 110 - LEGISLATIVE RULE STATE TAX DEPARTMENT › Series 110-24 - Corporation Net Income Tax › Section 110-24-1 - General

Current through Register Vol. XLI, No. 28, July 12, 2024
1.1. Scope. -- This
				legislative rule is intended to explain and clarify the West Virginia
				Corporation Net Income Tax as set forth in W. Va. Code §§
									11-24-1,
et seq
.
1.2.
				Authority. -- W. Va. Code §§
									29A-3-1,
				et seq., 11-10-5.
1.3. Filing date.
				-- July 1, 2022.
1.4 Effective
				date. -- July 1, 2022.
1.5 Sunset
				Provision. -- This rule shall terminate and have no further force or effect on
				August 1, 2027.
West Virginia Code of State Rules › Agency 110 - Tax › Title 110 - LEGISLATIVE RULE STATE TAX DEPARTMENT › Series 110-24 - Corporation Net Income Tax › Section 110-24-2 - Introductory Statement

Current through Register Vol. XLI, No. 28, July 12, 2024
The West Virginia Corporation Net Income Tax became effective
				  July 1, 1967, and is a conformity tax in that it utilizes federal taxable
				  income as a starting point to determine West Virginia taxable income and in
				  that it adopts federal definitions wherever possible.
West Virginia Code of State Rules › Agency 110 - Tax › Title 110 - LEGISLATIVE RULE STATE TAX DEPARTMENT › Series 110-24 - Corporation Net Income Tax › Section 110-24-3 - Definitions

Current through Register Vol. XLI, No. 28, July 12, 2024
3.1. Meaning of
				terms - general rule. -- Any term used in W. Va. Code §§
									11-24-1,
et seq.
, and in this rule have the same meaning as when used
				in a comparable context in the laws of the United States of America, as those
				laws relate to federal income taxation, unless a different meaning is clearly
				required by the context or by specific definition in article twenty-four, or in
				this rule.
3.1.a. Any reference in W. Va.
				Code §§
										11-24-1,
et seq.
, and in this rule, to the laws of the United States
				means the provisions of the Internal Revenue Code, as amended, and any other
				provisions of the laws of the United States of America as those laws relate to
				the determination of income for federal income tax purposes. West Virginia Code
				§
										11-24-3
				contains the most recent updating of terms used in W. Va. Code §§
										11-24-1,
et seq
.
West Virginia Code of State Rules › Agency 110 - Tax › Title 110 - LEGISLATIVE RULE STATE TAX DEPARTMENT › Series 110-24 - Corporation Net Income Tax › Section 110-24-4 - Effect of Rate Changes During Taxable Year

Current through Register Vol. XLI, No. 28, July 12, 2024
4.1. If any rate of tax imposed in W. Va.
				Code §§
									11-24-1,
et seq
. changes to become effective before December 31 of a
				calendar year, and if the taxable year included the effective date for the
				change of rate, then:
4.1.a. Tentative tax due
				is computed by applying the rate for the period before the effective date of
				the change of rate, and the rate for the period on and after that date, to the
				taxable income of the corporation for the entire taxable year; and
4.1.b. The tax for that taxable year shall be
				the sum of that proportion of each tentative tax which the number of months in
				each period bears to the number of months in the entire taxable year.
4.1.c. The procedure in this subsection may
				only be used when the date of the rate change is other than the first day of
				the taxable year.
West Virginia Code of State Rules › Agency 110 - Tax › Title 110 - LEGISLATIVE RULE STATE TAX DEPARTMENT › Series 110-24 - Corporation Net Income Tax › Section 110-24-5 - Corporations Exempt From Tax

Current through Register Vol. XLI, No. 28, July 12, 2024
5.1.
				Corporations exempt from the corporation net income tax in accordance with the
				provisions of W. Va. Code §§
									11-24-1,
et seq.
, including, but not limited to, W. Va. Code §
									11-24-5,
				or exempt from the corporation net income tax under any other provision of the
				W. Va. Code or under any provision of superseding federal code or federal law
				are exempt from the corporation net income tax. However regulated investment
				companies and real estate investment trusts subject to the provisions of W. Va.
				Code §
									11-24-4b
				are subject to tax as specified in that section.
5.1.a. Corporations which by reason of their
				purposes or activities are exempt from federal income tax are exempt from the
				corporation net income tax. However regulated investment companies and real
				estate investment trusts subject to the provisions of W. Va. Code §
										11-24-4b
				are subject to tax as specified in that section.
5.1.a.1. This exemption shall not apply to
				the unrelated business income, as defined in the Internal Revenue Code, of any
				corporation if the income is subject to federal income tax.
5.1.a.1.1. Example. -- A corporation exempt
				from federal income taxation under IRC 501(c)(3) receives $1,000,000 in cash
				donations and is bequeathed an unrelated business during the year. The
				tax-exempt corporation operates the business for the remainder of its tax year.
				The income from operating this business is considered unrelated business
				taxable income by the Internal Revenue Service. The income would also be taxed
				under the West Virginia Corporation Net Income Tax. However, the donations
				would be exempt.
West Virginia Code of State Rules › Agency 110 - Tax › Title 110 - LEGISLATIVE RULE STATE TAX DEPARTMENT › Series 110-24 - Corporation Net Income Tax › Section 110-24-6 - Allocation and Apportionment for tax years beginning on and after January 1, 2022

Current through Register Vol. XLI, No. 28, July 12, 2024
6.1. This
				section heading will apply to all tax years beginning on and after January 1,
				2022. C corporations having a fiscal tax year ending after January 1, 2022, and
				before December 31, 2022, will fall under the transition rules under section
				heading 6a. Tax years ending before January 1, 2022, will fall under allocation
				and apportionment rules under section heading 7.
6.2. "Business activities" include all
				activities engaged in by the corporation, and includes those activities giving
				rise to both business income and nonbusiness income.
6.2.1. If the business activities of a
				taxpayer take place entirely within this state, then the taxpayer does not
				allocate its nonbusiness income or apportion its business income using the
				apportionment methodologies prescribed by the statute, and the entire net
				income of the corporation is subject to the corporation net income tax.
6.2.1.a. The business activities of a
				taxpayer are considered to have taken place in their entirety within this state
				if the taxpayer is not taxable in another state.
6.2.1.b. "Not taxable in another state" means
				the taxpayer is not subject to a net income tax, a franchise tax measured by
				net income, a franchise tax for the privilege of doing business, or a
				corporation stock tax in another state, and another state has no jurisdiction
				to subject the taxpayer to a net income tax.
West Virginia Code of State Rules › Agency 110 - Tax › Title 110 - LEGISLATIVE RULE STATE TAX DEPARTMENT › Series 110-24 - Corporation Net Income Tax › Section 110-24-6a - Transition Rules for C Corporations having a Fiscal Tax Year ending after January 1, 2022, and before December 31, 2022

Current through Register Vol. XLI, No. 28, July 12, 2024
6a.1. Amendments to W. Va. Code §
									11-24-7
				enacted by House Bill 2026, during the 2021 Regular Legislative Session, made
				several changes to how income is apportioned and sourced:
6a.1.1. For tax years beginning on or after
				January 1, 2022, income apportionment formula method is changed from the
				4-factor formula set forth in section heading 7 to a single sales factor
				formula set forth in section heading 6.
6a.1.2. For sales made on or after January 1,
				2022, HB 2026 voids the "throw out rule" set forth in section heading 7. Sales
				made after that date are subject to the "no throw rule" set forth in section
				6.
6a.1.3. For sales of services
				and intangible property made on or after January 1, 2022, HB 2026 voids the
				former "cost of performance" sales allocation rule set forth in section heading
				7. Sales made after that date are subject to the market-based sourcing sales
				allocation rule set forth in section heading 6.
West Virginia Code of State Rules › Agency 110 - Tax › Title 110 - LEGISLATIVE RULE STATE TAX DEPARTMENT › Series 110-24 - Corporation Net Income Tax › Section 110-24-7a - Special Apportionment Rules

Current through Register Vol. XLI, No. 28, July 12, 2024
7a.1. For purposes of this rule, any member
				of a unitary group that is required or permitted to use an apportionment
				formula or apportionment method other than an apportionment formula or
				apportionment method prescribed by W. Va. Code §
									11-24-7
				is a "special apportionment member."
7a.1.a.
				Unitary groups which include some members which are required to use the
				apportionment formula set forth in W. Va. Code §
										11-24-7
				and other members which are required to use a special apportionment method are
				subject to apportionment as described in the following paragraph.
7a.1.a.1. In the absence of a method
				otherwise authorized or required by the Tax Commissioner, as described in
				subdivision 7a.1.b of this rule, a special apportionment member shall report
				and file its tax based on designation of a combined reporting group limited to
				unitary group members who are required or permitted to use a special
				apportionment formula or method, and who do in fact use the same special
				apportionment formula or method as the special apportionment member. The income
				and the factors of a special apportionment member shall not be included in the
				combined reporting group comprised of the remainder of the unitary group that
				are not special apportionment members that use an apportionment formula other
				than the apportionment formula of the particular special apportionment
				member.
West Virginia Code of State Rules › Agency 110 - Tax › Title 110 - LEGISLATIVE RULE STATE TAX DEPARTMENT › Series 110-24 - Corporation Net Income Tax › Section 110-24-8 - Accounting Periods And Methods Of Accounting

Current through Register Vol. XLI, No. 28, July 12, 2024
8.1. Period of computation of West Virginia
				taxable income.
8.1.a. For purposes of the
				tax imposed by this article, a taxpayer's taxable year shall be the same as the
				taxpayer's taxable year for federal income tax purposes.
West Virginia Code of State Rules › Agency 110 - Tax › Title 110 - LEGISLATIVE RULE STATE TAX DEPARTMENT › Series 110-24 - Corporation Net Income Tax › Section 110-24-13a - Combined Reporting

Current through Register Vol. XLI, No. 28, July 12, 2024
13a.1.
				For tax years beginning on and after the January 1, 2009, any taxpayer engaged
				in a unitary business with one or more other corporations shall file a combined
				report which includes the income, determined under W. Va. Code §§
									11-24-13c
				or 13d, and the allocation and apportionment of income provisions of W. Va.
				Code §§
									11-24-1,
et seq.
, of all corporations that are members of the unitary
				business.
13a.1.a. The income of an insurance
				company shall not be included in a combined report filed under W. Va. Code
				§§
										11-24-1,
et seq
. and the allocation or apportionment of income related
				to the insurance company shall not be included in and the apportionment factors
				of an insurance company shall not be included in the combined report, unless
				specifically required to be included by the Tax Commissioner.
13a.1.b. An insurance company, unless
				otherwise exempt from or excluded from tax under W. Va. Code §§
										11-24-1,
et seq
. or other provisions of the W. Va. Code, shall file a
				separate corporation net income tax return.
West Virginia Code of State Rules › Agency 110 - Tax › Title 110 - LEGISLATIVE RULE STATE TAX DEPARTMENT › Series 110-24 - Corporation Net Income Tax › Section 110-24-13g - Treatment Of Certain Charitable Expenses

Current through Register Vol. XLI, No. 28, July 12, 2024
13g.1. When a charitable expense is incurred
				by a member of a combined group, the threshold question is whether the
				charitable contribution was paid from nonbusiness income, from business income
				that is unitary group business income, or from business income that is not
				unitary group business income. If the contribution was of property other than
				money, the question becomes whether the property was an asset that generated
				nonbusiness income, unitary group business income, or other business income
				from a separate line of business. In the event the property generated no
				income, the preceding sentence shall be applied as if the property generated
				income. Only when the charitable expense, or any part of the expense, was not
				paid from nonbusiness income or from business income that is not unitary
				business income, may the expense, or the portion of the expense, not paid from
				nonbusiness income, or from business income that is not unitary group business
				income, be applied against unitary group business income as provided in
				subsection 13g.2. of this section.
13g.2. When the charitable expense incurred
				by a member of a combined group was paid from unitary group business income
				then, to the extent allowable as a deduction pursuant to IRC §170, it
				shall be subtracted first from the business income of the combined group,
				subject to the income limitations of IRC §170 applied to the entire
				business income of the group and any remaining amount shall then be treated as
				a nonbusiness expense allocable to the member that incurred the expense,
				subject to the income limitations of IRC §170 applied to the nonbusiness
				income of that specific member. If nonbusiness income is less than the
				nonbusiness charitable expenses, the difference may be carried forward. Any
				charitable deduction disallowed under the foregoing rule but allowed as a
				carryover deduction in a subsequent year, shall be treated as originally
				incurred in the subsequent year by the same member this subsection shall apply
				in the subsequent year in determining the allowable deduction in that
				year.
13g.3. This section applies
				to contributions made during a taxable year beginning after December 31,
				2008.
West Virginia Code of State Rules › Agency 110 - Tax › Title 110 - LEGISLATIVE RULE STATE TAX DEPARTMENT › Series 110-24 - Corporation Net Income Tax › Section 110-24-20 - Report of Change In Federal Taxable Income

Current through Register Vol. XLI, No. 28, July 12, 2024
20.1. General rule.
20.1.a. If the amount of a taxpayer's federal
				taxable income reported on its federal income tax return for any taxable year
				is changed or corrected by the United States Internal Revenue Service or other
				competent authority, or as the result of a renegotiation of a contract or
				subcontract with the United States, the taxpayer shall file an amended West
				Virginia return to report the change or correction in federal taxable income
				within the time specified in W. Va. Code §
										11-24-20,
				after the final determination of the change, correction or renegotiation, or as
				otherwise required by the Tax Commissioner, and shall concede the accuracy of
				the determination or state in which it is erroneous, except as otherwise
				provided in this section.
20.1.b.
				Any taxpayer filing an amended federal income tax return shall also file an
				amended corporation net income tax return within the time specified in W. Va.
				Code §
										11-24-20
				and shall give the information as required by the Tax
				Commissioner.
West Virginia Code of State Rules › Agency 110 - Tax › Title 110 - LEGISLATIVE RULE STATE TAX DEPARTMENT › Series 110-24 - Corporation Net Income Tax › Section 110-24-26 - Priority Of Tax In Distributions Of Property And Estates

Current through Register Vol. XLI, No. 28, July 12, 2024
26.1. In the distribution, voluntary or
				compulsory, in receivership, bankruptcy or otherwise, of the property or estate
				of any person, all taxes due and unpaid under W. Va. Code §
									11-24-1,
et seq
. shall be paid from the first money available for
				distribution in priority to all claims and liens except taxes and debts due the
				United States which under federal law are given priority over the debts and
				liens created by W. Va. Code §§
									11-24-1, et
				seq. Any person charged with the administration or distribution of the property
				or estate who violates the provisions of this section shall be personally
				liable for any taxes accrued and unpaid under W. Va. Code §
									11-24-1,
et seq
. which are chargeable against the person whose property
				or estate is in administration or distribution.
26.2. There is a priority for all unpaid
				corporation net income tax in distributions of the property or estate of any
				person, and the tax shall be paid from the first money available for
				distribution in priority to all other claims and liens, except taxes and debts
				due the United States.
26.2.a. The
				distribution of property subject to federal tax liens is subject to the
				priority of the liens provided in the Internal Revenue Code.
26.2.b. The distribution of property in
				federal bankruptcy proceedings is subject to the priorities of debts and liens
				provided in the United States Bankruptcy Code (11. U.S.C. §101,
et
				seq.
).
26.2.c. This
				priority applies to the amount of tax, interest, additions to tax, and
				penalties.
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 110-26-1 - General

Current through Register Vol. XLI, No. 28, July 12, 2024
1.1. Scope. --
				These regulations explain and clarify the West Virginia Municipal Business and
				Occupation Tax, W. Va. Code '8-13-5.
				The regulations provide municipalities with guidance as to how the municipal
				business and occupation tax is to be administered.
1.2. Authority. -- W. Va. Code ''8-13-5 and
				W. Va. Code
				11-10-5.
1.3. Filing Date. -- April 15,
				1992.
1.4. Effective Date. -- April
				15, 1992.
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 110-26-2 - Imposition Of Privilege Tax

Current through Register Vol. XLI, No. 28, July 12, 2024
2.1.
				The municipal business and occupation tax is a tax imposed upon persons for the
				act or privilege of engaging in business activities. The tax is measured by the
				application of rates against values of products, gross proceeds of sale or
				gross income of the business, as the case may be.
2.1.1. All persons engaging in business
				activities in a municipality which has ordinances providing for a municipal
				business and occupation tax pursuant to the authority granted by the
				Legislature in W. Va. Code '8-13-5
				are subject to the municipal business and occupation tax unless specifically
				exempted by statute or by these rules and regulations.
2.1.2. Certain occupations and business
				activities are classified, and the classifications are significant inasmuch as
				the tax liability varies because of the different rates established for the
				types of business activities engaged in by the taxpayer. The business activity
				usually determines the taxable classification, and where different business
				activities are conducted, the taxpayer is liable for tax under each taxable
				classification involved.
2.1.3. The
				various business classifications and the maximum tax rates a municipality may
				apply thereto are presented in Table 110-26A at the end of this regulation. For
				a definitive treatment of each particular business classification, See Sections
				2A through 2K of these rules and regulations.
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 110-26-2a - Production Of Natural Resource Products

Current through Register Vol. XLI, No. 28, July 12, 2024
2a.1. Producers of natural resource products.
				- For purposes of these rules and regulations, the word "Producer" shall mean
				and include, but not be limited to, every person who engages in the business of
				severing, extracting, mining, quarrying, reducing to possession or producing
				for sale, profit or commercial use any natural resource products from his own
				land or from the land of another under the right or license granted by lease or
				contract, either directly or by contracting with others for the necessary labor
				or mechanical services. A person who produces natural resource products for the
				use or consumption in his own business whether located within or without the
				municipality is a producer for the purposes of the municipal business and
				occupation tax.
2a.1.1. Persons who are
				producers, as described in the preceding paragraph, shall report the gross
				proceeds derived therefrom under the applicable production classification on
				the municipal business and occupation tax return. If it is not possible for the
				producer to determine gross proceeds of sale, he must determine the value of
				his produced natural resource products by employing one of the rules set forth
				in Section 2 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.
2a.1.2. A person who produces natural
				resource products and does not make sale of the same but uses or consumes the
				resources in his business shall report the value of such resources under
				applicable production classification on the municipal business and occupation
				tax return. In determining the value of the natural resource products, the
				taxpayer must adhere to Section 2 of these rules and regulations.
2a.1.3. Where the relationship between the
				producer of the natural resource products and the purchaser thereof is such
				that the gross proceeds derived from the sale are not indicative of the true
				value of the natural resources, the taxpayer shall determine value by
				application of one of the rules set forth in Section 2 of these rules and
				regulations.
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 110-26-2c - Selling Tangible Property; Exempt Sales

Current through Register Vol. XLI, No. 28, July 12, 2024
2c.1. Every person who engages or continues
				within a municipality in the business of selling any tangible property
				whatsoever, real or personal, is subject to the municipal business and
				occupation tax and shall report the gross income therefrom under either the
				retail or wholesale classification, depending upon the type of sale. Any vendor
				who receives income from extending credit to vendees or from the repetitive
				carrying of accounts in connection with the sale of any tangible personal
				property shall report such income under the service classification on the
				municipal business and occupation tax form. See Section 1a.1 of these rules and
				regulations.
2c.2. It is important
				that the taxpayer maintain books and records to accurately reflect the
				distinction between sales at retail and sales at wholesale. The rates of tax
				for these two classifications are different. If the books and records do not
				make a readily identifiable distinction, the municipality, upon audit, will
				consider that all sales were made at retail and the burden of proof will be on
				the taxpayer to show otherwise.
2c.3. Sales at wholesale.
2c.3.1. "Selling at Wholesale" and "Wholesale
				Sales" shall mean and include:
2c.3.1.1.
				Sales of any tangible personal property for the purpose of resale (by the
				vendee) in the form of tangible personal property;
2c.3.1.2. Sales of machinery, supplies or
				materials which are to be directly consumed or used by the purchaser in conduct
				of any business or activity which is subject to the municipal business and
				occupation tax;
2c.3.1.3. Sales of
				any tangible personal property to the United States, its agencies and
				instrumentalities or to this State and its institutions or political
				subdivisions.
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 110-26-2d - Public Service Or Utility Business

Current through Register Vol. XLI, No. 28, July 12, 2024
2d.1. Certain persons engaged within this
				State in any public service or utility business are taxable on such business
				and shall report the gross income from such business activities under the
				appropriate classification on the municipal business and occupation tax form.
				Only gross income derived from the supplying of public services shall be
				reported under the public service classifications. All income received by a
				public service or public utility taxpayer from activities other than the
				supplying of public services shall be reported under the appropriate
				classification on the municipal business and occupation tax return. For
				example, a light and power company engaged in operating a generating plant and
				system for distribution of electrical energy for sale, may also be engaged in
				selling various electrical appliances at retail. Such company would be taxable
				under the electric light and power company classification with respect to the
				sale of electric energy and also taxable under the retail classification with
				respect to the sale of electric appliances.
2d.2. There are certain persons who are not
				subject to the tax imposed under the public utility section even though such
				persons 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 distributions
				systems are not subject to the tax imposed under this Section.
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 110-26-2g - Business Of Operating Amusements

Current through Register Vol. XLI, No. 28, July 12, 2024
2g.1. Any person who derives income from
				engaging in the business of operating amusements shall report such income under
				the amusement classification on the municipal business and occupation tax form.
				Amusements shall include, but shall not be limited to, dance halls, theaters,
				skating rinks, moving picture shows, radio broadcasting stations, bowling
				alleys, golf courses, golf driving ranges, racetracks, carnivals, billiard
				parlors, etc. Any other place at which amusements are offered to the public
				shall constitute amusements for the purpose of this classification.
2g.2. Persons engaged in the business of
				radio broadcasting and who provide amusements or entertainment at the
				broadcasting station or at a public place for which an admission is charged
				shall report such income under the amusement classification. As to gross income
				derived by radio broadcasting stations from advertising activities, See Section
				2h of these rules and regulations.
2g.3. In the case of operators of places of
				amusement doing business on a percentage basis, the operator is subject to the
				municipal business and occupation tax on the total amount of admissions,
				regardless of whether, under the terms of agreement, he is required to pay a
				percentage of the admissions as part of the cost of operating. Moving picture
				show operators who rent film on a percentage basis are required to report the
				total admissions without any deduction on account of the proportion of
				admissions paid out for the use of the film.
2g.4. Persons who operate places of amusement
				and who also sell tangible property in connection therewith; such as, sale of
				popcorn by theatre owner, shall report the gross income from such sales under
				the applicable sales classification on the municipal business and occupation
				tax return.
2g.5. Also, persons
				engaged in the amusement business may be subject to tax under the rental
				classification on a certain portion of their gross income. This situation
				occurs when amusement operators rent personal property such as lockers or
				bowling shoes to their patrons.
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 110-26-2h - Service Business Or Calling

Current through Register Vol. XLI, No. 28, July 12, 2024
2h.1. Persons engaged in any service business
				or calling not otherwise specifically taxed under the municipal business and
				occupation tax law shall report the gross income derived therefrom under the
				service classification on the municipal business and occupation tax form.
2h.1.1. "Service Business or Calling" shall
				include all activities engaged in for other persons for a consideration, which
				involve the rendering of a service as distinguished from the sale of tangible
				property, but shall not include the services rendered by an employee to his
				employer. This term shall include persons engaged in manufacturing, compounding
				or preparing for sale, profit or commercial use, articles, substances or
				commodities which are owned by another or others, as well as persons engaged as
				independent contractors in producing natural resource products for persons
				required to pay the tax imposed under the production classification.
2h.1.2. Persons engaged in the business of
				television broadcasting and/or radio broadcasting are exempt from tax on gross
				income derived from advertising services.
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 110-26-2i - Furnishing Property For Hire; Rental And Royalty

Current through Register Vol. XLI, No. 28, July 12, 2024
2i.1. Any person engaged in the business of
				furnishing any real or tangible personal property, which has a tax situs in a
				municipality, or any interest therein for hire, loan, lease or otherwise,
				whether the return be in the form of rentals, royalties, fees or otherwise,
				shall report the gross income derived therefrom under the rental and royalty
				classification. The term tangible personal property as used herein shall not
				include money or public securities. The terms "Rental and Royalty
				Classification", "Rental Classification" and "Royalty Classification," when
				used within these regulations, are synonymous.
2i.2. The owner or operator of a store or an
				establishment in which leased departments are conducted must include on his
				return the rental income received by him from the lessee. The lessor must file
				a municipal business and occupation tax return and pay tax under this
				applicable classification.
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 110-26-2j - Small Loan And Industrial Loan Business

Current through Register Vol. XLI, No. 28, July 12, 2024
2j.1. Persons engaged in the business of
				making loans of money, credit goods, or things in action, who because of such
				activity are required under the provisions of W. Va. Code '47-7A-1 et seq. as
				amended, to obtain a license from the West Virginia Commissioner of Banking,
				and persons engaged in business as an industrial loan company, shall report all
				gross income received before April 1, 1971, under the small loan and industrial
				loan classification. The measure of the tax for persons engaged in this type of
				business shall not include the return of capital or return of principal in
				making loans of money, credit goods or things in action.
2j.2. All gross income received by such
				persons, as described in the preceding paragraph, received on or after April 1,
				1971, shall be reported under the banking classification on the municipal
				business and occupation tax return. (See Section 2k of these rules and
				regulations.)
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 110-26-2k - Banking And Other Financial Business

Current through Register Vol. XLI, No. 28, July 12, 2024
2k.1. Any person who engages, within this
				State, in a banking or financial business shall report gross income derived
				therefrom under the banking classification on the municipal business and
				occupation tax return. The preceding rule is applicable only to income received
				on or after April 1, 1971. For a definition of "Banking Business" or "Financial
				Organization", See Section 1a, of these rules and regulations.
2k.2. The term "Gross Income" of a banking or
				financial business shall mean interest, premiums, discounts, dividends, service
				fees or charges, commissions, fines, rents from real or tangible personal
				property, royalties, charges for bookkeeping or data processing, receipts from
				check sales, charges or fees, and receipts from the sale of tangible personal
				property.
2k.3. "Gross Income" of a
				banking or financial business shall not include:
2k.3.1. interest received on the obligations
				of the United States, its agencies and instrumentalities;
2k.3.2. interest received on obligations of
				this or any other State, territory or possession of the United States, or any
				political subdivision of any of the foregoing or of the District of Columbia;
				or
2k.3.3. interest received on
				investments or loans primarily secured by first mortgages or deeds of trust on
				residential property occupied by nontransients.
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 110-26-3 - Exemptions

Current through Register Vol. XLI, No. 28, July 12, 2024
3.1. Business
				exempt from tax. -- The municipal business and occupation tax law exempts from
				the tax the following businesses:
3.1.1.
				Insurance companies which pay the State of West Virginia a tax upon premiums:
				Provided, however, That this exemption shall not extend to that part of the
				gross income of insurance companies which is received for the use of real
				property, other than property in which the insurance company maintains its
				office or offices, in this State, whether the income be in the form of rentals
				or royalties.
3.1.2. Nonprofit
				cemetery companies organized and operated for the exclusive benefit of their
				members.
3.1.3. Fraternal
				societies, organizations and associations, which are organized and operated for
				the exclusive benefit of their members and not for profit. However, this
				exemption shall not extend to that part of the gross income arising from sale
				of alcoholic liquor, food and related services, of such societies,
				organizations and associations which are licensed as private clubs under the
				provisions of W. Va. Code '60-7-1
				et seq.
3.1.4. Corporations,
				associations and societies organized and operated exclusively for religious or
				charitable purposes.
3.1.5.
				Production credit associations, organized under the provisions of the federal
				"Farm Credit Act of 1933".
3.1.6.
				Any credit union organized under the provisions of W. Va. Code '31-1-1 et seq.
				or any other chapter of the West Virginia Code. However, the exemptions of this
				Section shall not apply to corporations or cooperative associations organized
				under the provisions of W. Va. Code '19-4-1 et
				seq.
3.1.7. Gross income derived
				from providing advertising services rendered in the business of radio and
				television broadcasting.
3.1.8. The
				gross income or gross proceeds of sale of a gasification or liquification of
				coal project in the demonstration, pilot or research stages. To qualify for
				this exemption the Tax Commissioner must first certify the project as eligible.
				Such exemption shall expire seven years from the date the project first
				receives gross income or gross proceeds from sales.