West Virginia Code of State Rules
Agency 110 - Tax
Title 110 - LEGISLATIVE RULE STATE TAX DEPARTMENT
Series 110-12A - Annual Tax On Incomes Of Certain Carriers
Section 110-12A-3 - Imposition of Annual Tax on Gross Income of Certain Carriers

(1) Motor vehicle carriers operating on the public highways of this State;

(2) Railroad car carriers;

(3) Railroad carriers;

(4) Express companies;

(5) Pipeline companies;

(6) Telephone companies;

(7) Telegraph companies;

(8) Airline companies; and

(9) Any person operating a steamboat or other watercraft.

(1) Since the gross income from all business done within the State is that business which begins and ends entirely within West Virginia, the measure of the tax shall include only gross income derived from transportation business. In arriving at the amount of tax on gross income, the taxpayer should exclude, from the measure of the tax, that income derived from activities within this State which is nonoperating income. Items of income which are not attributable to transportation business should not be included in the computation of tax.

(2) Certain items of nonoperating income or income not in furtherance of the carrier's transportation business, even though not subject to carrier tax, are subject to West Virginia's business and occupation tax. To illustrate: A trucking company receives income from the rental of an office building within this State. Such income is not subject to carrier tax but must be reported under the rental classification on the business and occupation tax return. See W. Va. Code '11-13 et seq.

(3) Items of nonoperating income which are not subject to carrier tax on gross income include:

(4) Any inquiries as to whether a particular income item is subject to carrier tax or business and occupation tax should be forwarded to the Tax Department.

(1) The gross income of carriers subject to tax is only that gross income derived from intrastate activities. The tax is applied against that gross income derived from transportation activities within this State, such activities being business beginning and ending within West Virginia. Therefore, income derived from interstate activities is not subject to the tax on gross income. Business or mileage which originates without West Virginia and passes through this State to other jurisdictions, or that which originates within this State and is carried to other states and that which originates outside this State and has a destination point herein is not subject to the tax on gross income. "Pass-through" business and "one-point" business do not begin and end within West Virginia; therefore, gross income derived from said activities is interstate income and is not subject to the annual tax on gross income.

(2) All gross income, from transportation activities, derived from "two-point" (beginning and ending within West Virginia) business is subject to the annual tax on carriers.