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 110-26-10 - Taxability Of Specific Businesses

Current through Register Vol. XLI, No. 28, July 12, 2024
10.1. Presented below are certain specific
				types of business activities and brief explanations as to the applicable
				classification under which each should report gross income. If any taxpayer is
				in doubt as to the proper class or classes under which he is required to file,
				he should forward an inquiry to the municipality.
10.1.1. Accountants. -- Persons who are
				certified public accountants, public accountants, bookkeepers or who provide
				accounting services to others for a consideration are taxable on the gross
				income derived from such activities under the service classification on the
				municipal business and occupation tax form.
10.1.2. Automobiles and other motor vehicles.
				-- Persons engaged in the business of selling automobiles and other motor
				vehicles shall report the gross receipts therefrom under the retail or
				wholesale classification, depending upon the type of sale. No deduction is
				allowed such persons for sales made to nonresidents of this State or the
				municipality unless it can be conclusively established by the dealer that such
				sale was consummated outside the boundaries of the municipality. Gross income
				received for repairing automobiles of others shall be reported under the
				service classification.
10.1.3.
				Advertising agencies.
10.1.3.1. Advertising
				agencies are primarily engaged in the business of rendering services, but may
				also make sales of tangible personal property to their clients or others or
				make purchases of such articles as agents in behalf of their clients. Articles
				acquired or produced by advertising agencies may be for their own use in
				connection with the rendition of an advertising service or may be for resale as
				tangible personal property to their clients.
10.1.3.2. The gross income received for
				advertising services, including commissions or discounts received upon articles
				purchased as agents in behalf of clients, is taxable under the service
				classification. Included in this classification are amounts attributable to
				sales of tangible personal property, unless charges for such articles are
				separately stated in billings rendered to clients.
10.1.4. Barbers and beauticians. -- Gross
				income received from barbering and beautician services shall be reported under
				the service classification. Any gross income received from sales of tangible
				personal property such as hair tonic, hair spray, etc. shall be reported under
				the retail classification.
10.1.5.
				Doors, windows and awnings. -- Persons engaged in the business of manufacturing
				doors, windows and awnings shall report the gross income from such activities
				under the manufacturing classification. Persons who manufacture and make sale
				of such products at retail must also report the gross proceeds of sale under
				the retail classification. Persons who install these products must report the
				gross income derived therefrom under the contracting classification.
10.1.6. Laundries and dry cleaners. --
				Persons who derive gross income from a laundry or dry cleaning business shall
				report said income under the service classification. However, sales of tangible
				personal property to the general public are taxable under the retail sales
				classification.
10.1.7. Hospitals.
				-- Generally, the gross income derived by hospitals for services rendered to
				patients shall be reported under the service classification. Some of the gross
				income derived from such business may be subject to tax under the retail or
				wholesale classification, as the case may be, if the rendition of the service
				involves the sale of tangible personal property.
10.1.8. Hotels and motels. -- Gross income
				received by hotels and motels for the renting of rooms or sleeping quarters
				shall be reported under the service classification. A hotel, motel, boarding
				house, rooming house, apartment hotel, resort lodge, or tourist camp includes
				all establishments which are held out to the public as a hotel, public lodging
				house, or places where sleeping accommodations may be obtained, whether with or
				without meals or facilities for preparing the same. The foregoing does not
				include establishments in the business of renting real estate, such as
				apartments, nor does it include hospitals, sanitariums, nursing homes, rest
				homes and similar institutions. Gross income from meals sold to the public by
				hotels or motels, etc. shall be reported under the retail
				classification.
10.1.9.
				Photography, photo printing, etc. -- Persons engaged in the business of
				photoprinting, photostating, photography, photoengraving, blueprinting, etc.,
				are required to report the gross income from such activities as follows:
10.1.9.1. Gross income from the developing of
				films owned by others, is to be reported under the service
				classification.
10.1.9.2. Gross
				income from making prints, photostats, blueprints, etc., shall be reported
				under the manufacturing classification.
10.1.9.3. Persons who develop film owned by
				others and make prints therefrom shall, when a charge is made for the
				development process, report under the service classification the gross income
				derived from developing the film and under the manufacturing classification the
				wholesale value of the prints manufactured.
10.1.9.4. Persons engaged in the photography
				business who take pictures, make prints and sell the finished product at retail
				shall report the value of the product under manufacturing and in addition to
				this, shall report the gross proceeds derived from the sale under the retail
				classification.
10.1.10.
				Trading stamps. -- Persons engaged in the business of trading stamps and who
				have redemption centers or stores within this State shall report the gross
				income derived therefrom under the retail classification. Gross income received
				from the sale of trading stamps to merchants who dispense stamps to their
				customers shall be reported under the wholesale classification.
10.1.11. Coin operated machines.
10.1.11.1. Gross income received by an
				individual who is the owner of coin operated vending machines shall be reported
				under the retail classification. If the owner splits the gross income with the
				individual within whose establishment the vending machine is located, the
				operator of the establishment shall report his portion of the gross income
				under the service classification. The owner of the vending machines receives no
				deduction or exclusion from gross income for the portion paid to the
				establishment operator.
10.1.11.2.
				Gross income received by an individual who is the owner of coin operated
				amusement devices shall be reported under the amusement classification. If the
				owner splits the gross income with the individual within whose establishment
				the amusement device is located, the operator of the establishment shall report
				his portion of the gross income under the service classification. The owner of
				the amusement devices receives no deduction or exclusion from gross income for
				the portion paid to the establishment operator.
10.1.12. Wall covering and floor covering. --
				Persons engaged in the business of selling and installing wall covering and
				floor covering shall report the gross income therefrom in the following manner:
10.1.12.1. If the sale of the product is
				separate and distinct from the agreement to install the product and separate
				charges are made for each, the vendor may report the sale under the retail or
				wholesale classification, as the case may be, and the installation under the
				contracting classification. The method by which the installation charge is
				computed will not alter the fact that such installation is contracting. See
				Section 2e of these rules.