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 110-26-11 - Doing Business Within And Without The Municipality

Current through Register Vol. XLI, No. 28, July 12, 2024
11.1. Persons domiciled outside a
				municipality who (a) lease tangible personal property to lessees in the
				municipality, or (b) perform construction or installation contracts in the
				municipality, or (c) render services to others therein, are doing business in
				the municipality, irrespective of the domicile of such persons and irrespective
				of whether or not such persons maintain a permanent place of business in the
				municipality.
11.2. Persons
				domiciled outside a municipality who sell tangible personal property to persons
				in the municipality, may be doing business in the municipality, irrespective of
				the domicile of such persons and irrespective of whether or not such persons
				maintain a permanent place of business in the municipality.
11.3. Persons domiciled in and having a place
				of business in a municipality, who (a) sell or lease personal property to
				buyers or lessees outside the municipality, or (b) perform construction or
				installation contracts outside the municipality, or (c) render services to
				others outside the municipality, are doing business both within and without the
				municipality. Whether or not such persons are subject to municipal business and
				occupation tax under the law depends upon the kind of business and the manner
				in which it is transacted. The following general principles govern in
				determining tax liability under the municipal business and occupation tax.
11.3.1. When the business involves a
				construction or installation contract in the municipality, no deduction from
				the measure of the tax is permitted, even though the contractor is domiciled
				outside the municipality and maintains a place of business outside the
				municipality which may contribute to the contract performed in the
				municipality.
11.3.2. When the
				business involves a construction or installation contract outside the
				municipality, the tax does not apply to any part of the income derived
				therefrom (except such part of the income as may be applicable to the
				manufacturer in the municipality by the contractor of articles used or
				incorporated in such construction or installation), even though the contractor
				is domiciled in the municipality and maintains a place of business therein
				which may contribute to the contract performed outside the
				municipality.
11.3.3. When the
				business involves a transaction taxable under the service classification, the
				tax does not apply upon any part of the gross income received for services
				incidentally rendered to persons in the municipality by a person who does not
				maintain a place of business in the municipality and who is not domiciled
				therein. However, the tax applies upon the income received for services
				incidentally rendered to persons outside the municipality by a person domiciled
				therein who does not maintain a place of business within the jurisdiction of
				the place of domicile of the person to whom the service is rendered.
11.3.4. For example, persons domiciled in a
				municipality, but having no place of business outside the municipality, are
				taxable upon the following types of income:
11.3.4.1. An insurance agency upon
				commissions received for insurance placed outside the municipality;
11.3.4.2. An attorney upon fees received from
				persons outside the municipality, even though a portion of his services were
				necessarily performed without the municipality;
11.3.4.3. A collection agency upon income
				received from clients without the municipality or with respect to collections
				made from persons without the municipality;
11.3.4.4. An accountant upon income received
				from persons for services performed without the municipality;
11.3.4.5. An investment company upon income
				received from loans placed without the municipality;
11.3.4.6. A commodity broker upon commissions
				received from persons without the municipality;
11.3.4.7. An advertising agency upon income
				received from advertising solicited and secured from firms without the
				municipality;
11.3.4.8. An
				employment agency upon income received for securing employees for firms without
				the municipality;
11.3.4.9. A
				physician upon income received from the treatment of patients without the
				municipality;
11.3.4.10. A
				purchasing agency upon commissions received from clients without the
				municipality or with respect to purchases made without the
				municipality.
11.3.5.
				Conversely, persons engaged in business without the municipality, but having no
				place of business within the municipality, are not taxable with respect to the
				reverse of the above situations. It is assumed, of course, that such services,
				to avoid taxation, are rendered only incidentally to persons within the
				municipality.
11.3.6. Persons
				engaged in a business taxable under the service classification and who maintain
				places of business both within and without the municipality which contribute to
				the performance of a service, shall apportion to the municipality that portion
				of gross income derived from services rendered by them in that municipality.
				Where it is not practical to determine such apportionment by separate
				accounting methods, the taxpayer shall apportion to each the proportion of
				total income which the cost of doing business within each bears to the total
				cost of doing business within and without each municipality.