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

Universal Citation: 110 WV Code of State Rules 110-13-2m

Current through Register Vol. XLI, No. 38, September 20, 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.

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