West Virginia Code of State Rules › Agency 110 - Tax › Title 110 - LEGISLATIVE RULE STATE TAX DEPARTMENT › Series 110-21F - The Coal Severance Tax Rebate › Section 110-21F-7 - Application for rebate required

Current through Register Vol. XLI, No. 28, July 12, 2024
7.1.
Application for rebate
				required
. -- Notwithstanding any provision of W. Va. Code §
									11-13EE-1,
et seq
., to the contrary, no rebate shall be paid under W. Va.
				Code §
									11-13EE-1,
et seq
., for any qualified investment property placed in
				service or use at a mine site until the person asserting a claim for the
				allowance of rebate under W. Va. Code §
									11-13EE-1,
et seq
., makes written application to the Tax Commissioner for
				allowance of rebate as provided in W. Va. Code §
									11-13EE-7
				and this rule. The application for rebate must be filed using MYTAXES, which is
				available at the Tax Department's webpage.
7.2.
Due date and contents of
				application
. -- An application for rebate shall be filed, in the form
				prescribed by the Tax Commissioner, no later than the last day for filing the
				annual severance tax return under W. Va. Code §
									11-13A-1,
et seq
., determined by including any authorized extension of
				time for filing the return, for the taxable year in which the qualified
				investment property to which the rebate relates is placed in service or use and
				all information required by the form is provided.
7.3. Separate application required for each
				taxable year in which qualified investment property is placed in service or
				use. -- A separate application for rebate is required for each taxable year
				during which the taxpayer places a new qualified investment into service or use
				in this state.
7.4. When amended
				return filed. -- When the taxpayer files an amended severance tax return for a
				tax year for which a rebate was allowed, or a rebate carry forward was allowed,
				the taxpayer must file an amended application for rebate, or an amended
				application for rebate carried forward, and provide the information required by
				the Tax Commissioner.
7.5. The Tax
				Commissioner will issue a form 1099 showing the amount of the Coal Severance
				Tax Rebate paid to a taxpayer during a taxable year.
7.6.
Rebate carry forward
.
				-- When the amount of rebate claimed exceeds 80 percent of the additional state
				severance tax payable, the unused portion of the rebate amount may be carried
				forward and rebated by the Tax Commissioner after severance taxes due in
				subsequent years are paid and the taxpayer files a claim for the rebate carry
				forward amount, or a portion thereof, and provides the information required by
				the Tax Commissioner.
7.6.1. In order for a
				rebate carry forward to be allowed, the qualified investment property that is
				the basis of the rebate must result in an increase in the number of tons of
				coal produced in the rebate carry forward year from the base year as well as an
				increase in the taxpayer's workforce.
7.6.2. There must also be an increase in the
				state portion of the severance taxes paid. The rebate paid in any year may not
				exceed 80 percent of the additional state portion of severance taxes payable,
				before credit for payment of the minimum severance tax, that is attributable to
				the increase in coal production. This provision also applies in cases where the
				taxpayer is claiming rebate as well as rebate carry forward. When there are two
				or more base period amounts at issue, the highest will be used to determine the
				increase in severance tax paid.
7.6.3. When the taxpayer operates more than
				one mine in West Virginia, the production from all mines is considered when
				determining whether there is an increase in the taxpayer's production of coal
				due to placing qualified investment property into service or use from the base
				year. Additionally, when the taxpayer is a member of a controlled or affiliated
				group that has other members that produce coal in West Virginia, tons of coal
				produced by all members of the controlled or affiliated group, including the
				taxpayer, are used to determine whether the qualified investment property has
				resulted in an increase in the number of tons of coal produced from the base
				period determination.
7.6.4. The
				number of full-time equivalent employees must also increase in order to claim
				carry forward rebate in accordance with section heading 3.
7.6.5. However, the rebate amount cannot be
				carried forward for a period that exceeds 10 years from the date the qualified
				investment property is first placed in service or use in this state by the
				taxpayer applying for the rebate.