West Virginia Code of State Rules › Agency 110 - Tax › Title 110 - LEGISLATIVE RULE STATE TAX DEPARTMENT › Series 110-14 - Avg. Wholesale Price Of Gasoline And Special Fuel For Computation Of Consumers Sales And Use Taxes › Section 110-14-4 - Computation of Tax

Current through Register Vol. XLI, No. 28, July 12, 2024
4.1.
				Except as provided in Section 4.8 of these regulations, a distributor or
				producer shall use as the measure of tax all actual metered gallons of gasoline
				withdrawn from storage within this State for sale to any other person, or for
				delivery to any retail service station owned or operated by such distributor or
				producer, or used as fuel in an internal combustion engine.
4.2. Except as provided in Section 4.8 of
				these regulations, a distributor or producer shall use as the measure of tax
				all actual metered gallons of special fuel, withdrawn from storage within this
				State for use, or sold for use, as fuel in an internal combustion engine, or
				sold, transferred or delivered to its company operated retail storage or any
				other retail station or user wherein said special fuel storage is for use or
				for the sale for use as fuel in an internal combustion engine.
4.3. A retail dealer, or importer, or user
				shall use as the measure of tax all actual metered gallons of gasoline, not
				previously included in the measure of tax, received into his storage within
				this State or used by him as fuel in an internal combustion engine.
4.4. A retail dealer, or importer, or user
				shall use as the measure of tax all actual metered gallons of special fuel, not
				previously included in the measure of tax, received into his storage within
				this State wherein said special fuel storage is for use or for the sale for use
				as fuel in an internal combustion engine, or used by him as fuel in an internal
				combustion engine.
4.5. A person
				not a distributor or producer, retail dealer, importer, or user shall use as
				the measure of tax all actual metered gallons of gasoline or special fuel
				subject to tax under this regulation and not previously included in the measure
				of tax by him or any other person.
4.6. Nothing in W. Va. Code '11-14-1
				et seq. and this regulation shall be construed to require the inclusion in the
				measure of tax of any gasoline or special fuel previously included in the
				measure of tax upon which the tax has been previously paid.
4.7. The tax imposed by W. Va. Code
				'11-14-1
				et seq. and this regulation shall be in addition to all other taxes of whatever
				character imposed by any other provisions of law.
4.8. Beginning on or after October 1, 1987,
				the measure of the tax for the quantity of gasoline delivered by a distributor
				or producer, as indicated in Sections 4.1 and 4.2 of these regulations, shall
				be either actual metered gallons or temperature compensated gallons at
				600F.
4.8.1.
				Temperature compensated gallons may be calculated by converting actual metered
				gallons in either of two ways:
(1) by means
				of temperature compensating meters approved by the West Virginia Department of
				Labor, Weights and Measures Division, or (2) by using American Petroleum
				Institute ASTM-IP Petroleum Measurement Tables for specific gravity and
				temperature. This measure shall be the same as that required for calculation of
				the consumers sales tax on gasoline and special fuels imposed by W. Va. Code
				'11-15-11
				and the motor carrier road tax imposed by '11-14A-1 et seq. If the metered
				quantity delivered is not determined by temperature compensating meters, as
				aforesaid, and the distributor or producer does not convert said gallons
				delivered to temperature adjusted gallons or, after making a mathematical
				conversion fails to keep and maintain records to support and substantiate the
				conversion, then the amount of tax due shall be determined by the number of
				metered gallons of gasoline or special fuel delivered without adjustment for
				temperature. Any distributor or producer using the conversion method for
				determining the quantity delivered must record the conversion adjustment on
				each invoice and must continue to use that method for the entire tax
				year.
4.8.1.1. Example: What is the
				volume at 60oF of 10,000 US gallons of oil measured
				at 34oF when the gravity of the oil is 64.80 API at
				60oF? To find the volume, the following steps should
				be performed:
Enter the table in the column "API Gravity at
				  60oF, headed 64o API, and
				  note that against an "Observed Temperature of 34oF"
				  the factor is 1.0168
Likewise, from the column headed
				  65o API, note that for the observed temperature of
				  34oF the factor is 1.0170
This represents an increase of 0.0002 in the factor for an
				  increase of 1.0o API. Therefore, by simple
				  proportion, an increase in gravity from 64.0 to
				  64.80o API increases the factor by 0.8 x 0.0002 or
				  0.0002
Then, one U.S. gallon of oil having a gravity of
				  64.80o API at 60oF and
				  measured at 34oF occupies at
				  60oF a volume of 1.0168 + 0.0002 or 1.0170 U.S.
				  Gallons
Therefore, 10,000 U.S. gallons measured at
				  34oF occupy at 60oF a
				  volume of 10,000 x 1.0170 or 10,170 U.S. Gallons