West Virginia Code of State Rules › Agency 110 - Tax › Title 110 - LEGISLATIVE RULE STATE TAX DEPARTMENT › Series 110-23 - Business Franchise Tax › Section 110-23-5a - Special Apportionment Rules - Financial Organizations Effective for Taxable Years Beginning on or After January 1, 1991

Current through Register Vol. XLI, No. 28, July 12, 2024
5a.1. General. -- The West Virginia
				Legislature has found that the general formula set forth in W. Va. Code
				'11-23-5
				for apportioning the tax base of corporations and partnerships taxable in this
				state as well as in another state is inappropriate for use by financial
				organizations due to the particular characteristics of those organizations and
				the manner in which their business is conducted. Accordingly, the general
				formula set forth in W. Va. Code '11-23-5
				may not be used to apportion the tax base of such financial organizations, and
				financial organizations are required to use only the apportionment formula and
				methods set forth in W. Va. Code '11-23-5a.
5a.2. Financial organizations with business
				activities partially within and partially without this state. - A financial
				organization not having its commercial domicile in West Virginia shall
				apportion its tax base to this state as provided in W. Va. Code '11-23-5a
				and this section 5a of these regulations and the subsections thereof if it
				regularly engages in business in this state.
5a.2.1. Nexus presumptions and exclusions. --
				A financial organization is presumed to be regularly engaging in business in
				this state if during any year it obtains or solicits business with twenty or
				more persons within this state, or if the sum of the value of its gross
				receipts attributable to sources in this state equals or exceeds one hundred
				thousand dollars. However, gross receipts from the following types of property
				(as well as those contacts with this state reasonably and exclusively required
				to evaluate and complete the acquisition or disposition of the property, the
				servicing of the property or the income from it, the collection of income from
				the property, or the acquisition or liquidation of collateral relating to the
				property) shall not be a factor in determining whether the owner is engaging in
				business in this state:
5a.2.1.1. An interest
				in a real estate mortgage investment conduit, a real estate investment trust,
				or a regulated investment company;
5a.2.1.2. An interest in a loan backed
				security representing ownership or participation in a pool of promissory notes
				or certificates of interest that provide for payments in relation to payments
				or reasonable projections of payments on the notes or certificates;
5a.2.1.3. An interest in a loan or other
				asset from which the interest is attributed to a consumer loan, a commercial
				loan or a secured commercial loan, and in which the payment obligations were
				solicited and entered into by a person that is independent, and not acting on
				behalf, of the owner;
5a.2.1.4. An
				interest in the right to service or collect income from a loan or other asset
				from which interest on the loan is attributed as a loan described in Section
				5a.2.1.3 of these regulations, and in which the payment obligations were
				solicited and entered into by a person that is independent, and not acting on
				behalf of the owner; and
5a.2.1.5.
				Any amounts held in an escrow or trust account with respect to property
				described above.