West Virginia Code of State Rules › Agency 110 - Tax › Title 110 - LEGISLATIVE RULE STATE TAX DEPARTMENT › Series 110-15 - Consumer Sales And Service Tax And Use Tax › Section 110-15-11 - Imposition of Tax on Gasoline and Special Fuels

Current through Register Vol. XLI, No. 28, July 12, 2024
11.1. General. - All sales of gasoline or
				special fuel by distributors or importers, except when to another distributor
				for resale in this State or when it is a bulk sale qualified under Section 11.5
				of these regulations, and all gasoline or special fuel furnished or delivered
				within this State to consumers or users shall be subject to the consumers sales
				and service tax and use tax. Sales of gasoline or special fuel by a person who
				paid the consumers sales and service tax or use tax on his purchases of fuel,
				shall not thereafter again be subject to such tax. This Section shall be
				construed so that all gallons of gasoline or special fuel sold and delivered,
				or delivered, in this State shall be subject to the consumers sales and service
				tax or the use tax, and tax on such gallonage shall be imposed only once.
11.1.1. On Purchase Out-Of-State. - An excise
				tax is imposed on the use or consumption in this State of gasoline or special
				fuel which was purchased outside this State. The rate of this tax is five
				percent (5%) of the average wholesale price of such gasoline or special fuel,
				as such wholesale price is defined and determined under Section 11.4 of these
				regulations, notwithstanding any provision of W. Va. Code '11-15A-1 et seq. to
				the contrary. The gasoline or special fuel contained in the supply tank of a
				motor vehicle that is not a motor carrier shall not be subject to this tax;
				however, the gasoline or special fuel which is in the supply tank or auxiliary
				tank of construction equipment, mining equipment, track maintenance equipment
				or other similar equipment, when such equipment is brought into this State,
				shall be taxed in the same manner as the gasoline or special fuel which is in
				the supply tank of a motor carrier.
11.1.2. Upon Whom Tax Imposed. - The
				consumers sales and service tax and use tax imposed on the sale or use of
				gasoline and special fuel within this State shall be collected on the actual
				metered gallons delivered at the first point of delivery within this State to a
				person not excepted from tax under the sale for resale exception set forth in
				Section 11.1 of these regulations. For periods beginning on or after October 1,
				1987, the quantity delivered shall be either the actual metered gallons
				delivered or the quantity delivered being calculated by converting to 60E
				Fahrenheit the quantity transferred by means of either temperature compensating
				meters approved by the West Virginia Department of Labor, Weights and Measures
				Division, or by mathematical conversion using American Petroleum Institute
				(API) ASTM-IP Petroleum Measurement Tables for specific gravity and
				temperature. This measure shall be the same as that required for calculation of
				the Gasoline and Special Fuel Excise Tax imposed by W. Va. Code ''11-14-1 et
				seq. and 11-14A-1 et seq. If the metered quantity delivered is not determined
				by temperature compensating meter, as aforesaid, and the taxpayer 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. Use of the conversion method for determining the
				quantity of gasoline or special fuel delivered necessitates that the conversion
				adjustment be made on each invoice and must continue to use that method for the
				entire tax year for the consumers sales and service tax and the use tax.
Example. - What is the volume at 60EF of 10,000 U.S. gallons
				  of oil measured at 34EF when the gravity of the oil is 64.80 API at
				  60EF?
Enter the table in the column "API Gravity at 60EF," headed
				  64E API, and note that against an "Observed Temperature of 34EF" the factor is
				  . . . 1.0168
Likewise, from the column headed 65EF API, note that for the
				  observed temperature of 34EF the factor is . . . 1.0170
This represents an increase of 0.0002 in the factor for an
				  increase of 1.0E API. Therefore, by simple proportion and increase in gravity
				  from 64.0 to 64.80E API increases the factor by 0.8 x 0.0002 or . . .
				  0.0002
Then, one U.S. gallon of oil having a gravity of 64.80E API
				  at 60EF and measured at 34EF occupies at 60EF a volume of 1.0168 + 0.0002 or .
				  . . 1.0170 U.S. Gallons
Therefore, 10,000 U.S. gallons measured at 34EF occupy at
				  60EF a volume of 10,000 x 1.0170 or . . . 10,170 U.S. Gallons