West Virginia Code of State Rules › Agency 110 - Tax › Title 110 - LEGISLATIVE RULE STATE TAX DEPARTMENT › Series 110-13 - Business And Occupational Tax › Section 110-13-2m - Business Of Generating Or Producing Electric Power; Exception; Rates

Current through Register Vol. XLI, No. 28, July 12, 2024
2m.1. Every person
				engaging within this State in the business of generating electric power when
				the sale of electric power is not subject to tax under W. Va. Code
				'11-13-2d,
				is liable for tax on the gross proceeds from the sale of the electric power at
				a rate of four percent (4%), except that the rate is two percent (2%) on that
				portion of the gross proceeds on the sale of electric power to a plant of a
				customer engaged in a manufacturing activity, if the contract demand at the
				plant location exceeds two hundred thousand kilowatts per hour per year, or if
				the usage at the plant location exceeds two hundred thousand kilowatts per hour
				in a year.
2m.2. The measure of
				this tax is the value of all electric power generated or produced in this State
				for sale, profit or commercial use, regardless of the place of sale or the fact
				that transmission may be to points outside this State: Provided, That the gross
				income received by municipally owned plants generating or producing electricity
				is not subject to tax under this rule.
2m.3. Until June 1, 1995, beginning March 1,
				1989, every person taxable under this Section shall determine their liability
				for payment of tax under W. Va. Code ''11-13-2m and 11-13-2d and under W. Va.
				Code '11-13-2n.
				If for taxable months beginning on or after March 1, 1989, that person's
				liability for payment of tax under W. Va. Code ''11-13-2m and 11-13-2d is less
				than the amount of that person's liability for payment of tax under W. Va. Code
				'11-13-2n,
				then that person shall pay the tax under W. Va. Code '11-13-2n
				and not the sum of the amount of tax due under W. Va. Code ''11-13-2m and
				11-13-2d. If the tax due under W. Va. Code '11-13-2n
				is less, then the amount of tax due under W. Va. Code ''11-13-2m and 11-13-2d
				is the tax due. The provisions of this Section of this rule expire and become
				null and void for taxable years beginning on or after January 1,
				1998.
2m.4. Beginning June 1, 1995,
				electric light and power companies that actually paid tax based on the
				provisions of Section 2d.3.3 of this rule or this Section for every taxable
				month in 1994 shall determine their liability for payment of tax under this
				rule in accordance with Section 2m.4.1 of this rule. All other electric light
				and power companies shall determine their liability for payment of tax under
				this rule exclusively under Section 2o of this rule.
2m.4.1. If for taxable months beginning on or
				after June 1, 1995, liability for tax under Section 2o of this rule is equal to
				or greater than the sum of the power company's liability for payment of tax
				under Section 2d.3.3 of this rule and this Section, then the company shall pay
				the tax due under Section 2o of this rule and not the tax due under Section
				2d.3.3 of this rule. If tax liability under Section 2o of this rule is less,
				then the tax shall be paid under Section 2d.3.3 of this rule and this Section
				and the tax due under Section 2o of this rule shall not be paid.
2m.4.2. The provisions of this Section expire
				and become null and void for taxable years beginning on or after January 1,
				1998, at which time all electric light and power companies shall determine
				their liability for payment of tax exclusively under Section 2o of this rule.
				An electric light and power company that generates and produces power in this
				State shall continue to be considered to be an "industrial taxpayer" for
				purposes of W. Va. Code '11-13D-2(b)(8),
				and gross income of an electric light and power company from the generation and
				production of power in this State and sales and demand charges for electric
				power sold in this State shall continue to be considered "gross income of the
				business subject to tax under Article thirteen of this Chapter" for purposes of
				W. Va. Code '11-23-17(b),
				all to the extent of and in accordance with the law in effect immediately
				preceding June 1, 1995.