Current through Register Vol. XLI, No. 38, September 20, 2024
2d.1. Persons engaged within this State in
certain public service or utility business are taxable on the privilege of
engaging in the businesses and shall report the gross income from the business
activities under the appropriate classification on the business and occupation
tax form. Only gross income derived from the supplying of public services shall
be reported under the public service classifications.
2d.2. There are certain persons who are not
subject to tax under W. Va. Code '11-13-2d
even though they may be subject to the control of this State's Public Service
Commission. These statutorily exempt persons are railroads, railroad car
companies, express companies, pipeline companies, motor carriers, telephone and
telegraph companies and water carriers by steamboat or steamship.
Municipally-owned water companies and municipally-owned electric distribution
systems are not subject to the tax under W. Va. Code '11-13-2d.
2d.3. Upon any person engaged or continuing
within this State in any public service or utility business, except railroad,
railroad car, express, pipeline, telephone and telegraph companies, water
carriers by steamboat or steamship and motor carriers, the tax due under in W.
Va. Code '
11-13-2d
is equal to the gross income of the business derived from the activity or
activities multiplied by the respective rates as follows:
2d.3.1. Street and interurban and electric
railways, one and four-tenths percent (1.4%);
2d.3.2. Water companies, four and four-tenths
percent (4.4%), except as to income received by municipally owned water
plants;
2d.3.3. Electric light and
power companies:
2d.3.3.1. A person who
generates electric power in this State and then sells that power generation in
regulated transactions in this State, shall pay tax at the rate of four percent
(4%) on sales and demand charges derived from the sale of the power in this
State, except as otherwise provided in this rule.
2d.3.3.2. A person who sells electric power
in this State in regulated transactions which that person does not generate in
this State, shall pay tax at the rate of three percent (3%) on sales and demand
charges derived from the sale of the power in this State, except as otherwise
provided in this rule.
2d.3.3.3.
Notwithstanding the provisions of Sections 2.3.3.1 and 2.3.3.2 of this rule, if
electric power is sold in this State:
(1) to
a plant location of a customer engaged in manufacturing activity and the
contract demand or usage at the plant location exceeds two hundred thousand
kilowatts per hour per year or two hundred thousand kilowatts per hour in a
year, then the rate of tax on the sales and demand charges derived from the
sales is two percent (2%);
(2) to a
plant location in this State that consumes the power in an electrolytic process
for the manufacture of chlorine, then to the extent the electric power consumed
in the electrolytic process is separately metered from all other electric power
consumed at that location, the demand charges for the power is exempt from the
tax imposed by W. Va. Code ' 1-13-2;
(3) to a plant location in this State that
consumes the power in the manufacture of ferroalloy, then to the extent the
electric power consumed in manufacturing ferroalloy is separately metered from
all other electric power consumed at that location, the sales and demand
charges for the power are exempt from the tax imposed by W. Va. Code
'11-13-2;
or
(4) by a municipally owned plant
producing or purchasing electricity and distributing the same, the income it
receives from the power is exempt from the tax imposed by W. Va. Code
'11-13-2.
2d.3.3.4. As used in this Section,
the term "ferroalloy" means any of the various alloys of iron and one or more
other elements used as a raw material in the production of steel, but does not
include the final production of steel.
2d.3.4. Natural gas companies shall pay tax
at the rate of four and twenty-nine hundredths percent (4.29%) on the gross
income, except (1) that the sale of natural gas under W. Va. Code
'11-13-2d
is exempt from the tax due under W. Va. Code '11-13-2d
to the extent that the natural gas is separately metered and is gas from which
the purchaser derives hydrogen and carbon monoxide for use in the manufacture
of chemicals in this State, and the full economic benefit of the exception
provided in this subdivision to the taxpayer shall be passed on to the
purchaser of the natural gas and (2) that there shall be no exemption for the
sale of any natural gas from which the purchaser derives carbon monoxide or
hydrogen for the purpose of resale;
2d.3.5. Toll bridge companies shall pay tax
at the rate of four and twenty-nine hundredths percent (4.29%); and
2d.3.6. Upon all other public service or
utility business shall pay tax at the rate of two and eighty-six hundredths
percent (2.86%).
2d.4.
The measure of this tax shall not include gross income derived from commerce
between this State and other states of the United States or between this State
and foreign countries. The measure of the tax under this Section shall include
only gross income received from the activity of supplying public
service.
2d.5. Until June 1, 1995,
on and after March 1, 1989, electric light and power companies shall also
determine their liability for payment of tax under W. Va. Code ''11-13-2d,
11-13-2m and
11-13-2n.
If for taxable months beginning on or after the March 1, 1989 liability for tax
under W. Va. Code '11-13-2n
is equal to or greater than the sum if the power company's liability for
payment of tax under W. Va. Code '' 11-13-2d and 11-13-2m, then the company
shall pay the tax due only under W. Va. Code '11-13-2n.
But if tax liability under W. Va. Code '11-13-2n
is less, then tax shall be paid under W. Va. Code ''11-13-2d and 11-13-2m and
the tax under W. Va. Code '11-13-2n shall not be paid. The provisions of this
subsection and subdivision 2d.3.3 of this rule shall expire and become null and
void for taxable years beginning on or after January 1, 1998.
2d.6. Beginning June 1, 1995, electric light
and power companies that actually paid tax based on the provisions of Section
2d.3.3 or Section 2m of this rule for every taxable month in 1994 shall
determine their liability for payment of tax in accordance with Section 2d.6.1
of this rule. All other electric light and power companies shall determine
their liability for payment of tax exclusively under Section 2o of this rule.
2d.6.1. 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 and Section 2m of this rule, then the company shall pay
the tax due under Section 2o of this rule and not the tax due under 2d.3.3 and
Section 2m 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 and Section 2m of this
rule and the tax due under Section 2o of this rule shall not be paid.
2d.6.2. The provisions of Section 2d.3.3 of
this rule 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.
