West Virginia Code of State Rules › Agency 110 - Tax › Title 110 - LEGISLATIVE RULE STATE TAX DEPARTMENT › Series 110-13 - Business And Occupational Tax › Section 110-13-1a - Definitions

Current through Register Vol. XLI, No. 28, July 12, 2024
1a.1. For purposes
				of this rule, terms have the meaning given to them by this Section, unless a
				different meaning is clearly required by either the context in which the term
				is used or by specific definition elsewhere in these rules.
1a.2. Terms defined.
1a.2.1. Average four year generation - See
				Section 2o.1 of this rule.
1a.2.2.
				"Business" includes all activities engaged in or caused to be engaged in with
				the object of gain or economic benefit, either direct or indirect. "Business"
				includes the rendering of gas storage service by any person for the gain or
				economic benefit of any person, including, but not limited to, the storage
				operator, whether or not incident to any other business activity.
1a.2.2.1. The business and occupation tax act
				imposes taxes upon persons engaged in business. The term "Business" includes
				all activities engaged in or caused to be engaged in with the object of gain or
				economic benefit, either direct or indirect.
1a.2.2.2. In determining whether a business
				is engaged in for direct or indirect economic gain or benefit, the lack of
				profit suffered in the activity is not relevant; nor is it material that the
				business was engaged without profit as the primary motivation.
1a.2.3. Capacity factor - See
				Section 2o.1 of this rule.
1a.2.4.
				"Company use" means that amount of electrical energy, excluding station use and
				line loss, used to construct, maintain or operate generation, transmission,
				office or other facilities of the taxpayer in West Virginia, used in the
				conduct of any electric utility business in West Virginia or any electric
				energy generation business in West Virginia.
1a.2.5. "Dekatherm" means the thermal energy
				unit equal to one million British thermal units (BTU's) or the equivalent of
				one thousand cubic feet of gas having a heating content of one thousand BTU's
				per cubic foot.
1a.2.5.1. For the purpose of
				calculating the tax imposed upon any gas storage business, the number of
				dekatherms of gas injected into or withdrawn from the gas storage reservoir
				during a tax month shall not include:
1a.2.5.1.a. Any gas consumed by a gas storage
				operation as fuel for compressors used to pump gas into or out of storage,
				including gas used in a recycling operation, whether or not that gas was
				temporarily placed into storage prior to its withdrawal for such use as fuel;
				or
1a.2.5.1.b. Any gas used in a
				recycling operation of the storage reservoir.
1a.2.5.2. All other gas injected into or
				withdrawn from a storage reservoir shall be included in the number of
				dekatherms constituting the measure of the tax base, and the measure shall not
				be decreased to reflect any loss of gas from storage or any gas which may
				escape or otherwise be lost.
1a.2.6. "Ferroalloy" - See Section 2n.2 of
				this rule.
1a.2.7. "Gas" means
				either natural gas unmixed, or any mixture of natural and artificial gas or any
				other gas.
1a.2.8. "Gas storage
				operator" means any person who operates a storage reservoir or provides a
				storage service as defined in this Section, either as owner or
				lessee.
1a.2.9. "Gas storage
				service" means the injection of gas into a storage reservoir, the storage of
				gas for any period of time in a storage reservoir, or the withdrawal of gas
				from a storage reservoir. Such gas may be owned by the storage operator or any
				other person.
1a.2.10. Generating
				unit - See Section 2o.1 of this rule.
1a.2.11. "Gross income" means the gross
				receipts of the taxpayer, received as compensation for personal services and
				the gross receipts of the taxpayer derived from trade, business, commerce or
				sales and the value proceeding or accruing from the sale of tangible personal
				property (real or personal), or service, or both, and all receipts by reason of
				the investment of the capital of the business engaged in, including rentals,
				royalties, fees, reimbursed costs or expenses or other emoluments however
				designated and including all interest, carrying charges, fees or other like
				income, however denominated, derived by the taxpayer from repetitive carrying
				of accounts, in the regular course and conduct of his or her business, and
				extension of credit in connection with the sale of any tangible personal
				property or service, and without any deductions on account of the cost of
				property sold, the cost of materials used, labor costs, taxes, royalties paid
				in cash or in kind or otherwise, interest or discount paid or any other
				expenses whatsoever.
1a.2.12.
				"Gross proceeds of sales" means the value, whether in money or other property,
				actually proceeding from the sale of tangible property or the providing of
				services without any deduction on account of the cost of property sold or
				expenses of any kind.
1a.2.13.
				"Gross West Virginia electric energy generation" means the total amount of
				electric energy produced by a generating station located in West Virginia
				without reduction for station use, company use, line loss or any other use,
				loss or deduction.
1a.2.14.
				"Inactive reserve." - See Section 2o.1 of this rule.
1a.2.15. "Kilowatt hours of electricity sold
				to consumers in this State that were not generated or produced in this State"
				means total kilowatt hours of electricity sold to consumers located in West
				Virginia less net kilowatt hours generated or produced in West Virginia as
				defined in Section 1a.2.21 of this rule.
1a.2.16. "Kilowatt hours of net generation
				available for sale that was generated or produced in this State" means gross
				West Virginia electric energy generation less station use, as defined in this
				rule. "Kilowatt hours of net generation available for sale that was generated
				or produced in this State" shall not be reduced by company use, line loss or
				any other use, loss or deduction, except station use, as defined in this
				rule.
1a.2.17. "Line loss" means
				loss of electrical energy by electrical resistance and electromagnetism
				occurring from or in electrical transmission lines or apparatus between any two
				points along the transmission lines or apparatus.
1a.2.18. "Maximum possible annual
				generation." - See Section 2o.1 of this rule.
1a.2.19. "Month" or "tax month" means the
				calendar month.
1a.2.20. "Net
				generation." - See Section 2o.1 of this rule.
1a.2.21. "Net Kilowatt hours generated or
				produced in West Virginia" means kilowatt hours of net generation available for
				sale that was generated or produced in this State, as defined in Section
				1a.2.16 of this rule.
1a.2.22. "Net
				number of dekatherms of gas injected" means the sum of the daily injections of
				dekatherms of gas in excess of the sum of the daily withdrawals of dekatherms
				of gas during a tax month.
1a.2.23.
				"Net number of dekatherms of gas withdrawn" means the sum of the daily
				withdrawals of dekatherms of gas in excess of the sum of the daily injections
				of dekatherms of gas during a tax month.
1a.2.24. "Official capability." - See Section
				2o.1 of this rule.
1a.2.25.
				"Peaking unit." - See Section 2o.1 of this rule.
1a.2.26. "Person" or the term "company," used
				interchangeably in this rule, includes any individual, firm, partnership, joint
				venture, association, corporation, trust or any other group or combination
				acting as a unit, and the plural as well as the singular number, unless the
				intention to give a more limited meaning is disclosed by the context.
1a.2.27. "Recycling operation" means the
				withdrawal of gas from a storage reservoir and the subsequent reinjection of
				gas into the same reservoir solely for the purpose of regulating the pressure
				of the storage reservoir or portion of the storage reservoir.
1a.2.28. "Retired from service." - See
				Section 2o.1 of this rule.
1a.2.29.
				"Sale," "sales" or "selling" includes any transfer of title to property or
				electricity, whether for money or in exchange for other property.
1a.2.30. "State" or "this State" means the
				State of West Virginia.
1a.2.31.
				"Station" or "generating station" means a station at which electrical
				generators, dynamos or other equipment or apparatus are used to convert
				mechanical, chemical, solar, geothermal or nuclear energy into electrical
				energy. The term includes, but is not limited to, those generating stations
				producing electrical energy by means of coal fired, gas fired, wood fired, gob
				fired, coal waste fired, coal refuse fired or waste fired electrical energy
				generation technology; and also includes, but is not limited to, stations
				producing electrical energy by means of nuclear fission or fusion, magnetohydro
				dynamic, fluidized bed combustion, solar, biomass, wind, fuel cell, steam
				turbine, fluid turbine, gas turbine, hydroelectric or pumped-storage
				hydroelectric electrical energy generation technology.
1a.2.32. "Station use" or "plant use" means
				that amount of electric energy used by a generating station in the production
				of electricity and general operation of the generating station. The term
				"station use" or "plant use" includes the energy used for pumping water for
				purposes of providing stored energy at a pumped storage hydroelectric plant.
				"Station use" or "plant use" does not include company use or line
				loss.
1a.2.33. "Storage reservoir"
				means that portion of any subterranean sand or rock stratum or strata into
				which gas is, was or may have been injected for the purpose of storage prior to
				March 1, 1989.
1a.2.34. "Storage
				Utilization Index." - See Section 2e.1 of this rule.
1a.2.35. "Taxable generating capacity." - See
				Section 2o.1 of this rule.
1a.2.36.
				"Tax" means the Business and Occupation Tax imposed pursuant to W. Va. Code
				'11-13-1 et
				seq.
1a.2.37. "Taxpayer" means any
				person liable for any tax under this rule.
1a.2.38. "Taxable year" means the calendar
				year, or the fiscal year ending during the calendar year, upon the basis of
				which tax liability is computed under W. Va. Code '11-13-1 et seq.
				"Taxable year" means, in case of a return made for a fractional part of a year
				under the provisions of W. Va. Code '11-13-1 et seq., or
				under this rule, the period for which the return is made.
1a.2.39. "Twelve consecutive months." - See
				Section 2o.1 of this rule.