Current through Register Vol. XLI, No. 38, September 20, 2024
2n.1. Rate of
tax. - Until June 1, 1995, upon every person engaging or continuing within this
State in the business of generating or producing electricity for sale, profit
or commercial use, either directly or indirectly through the activity of
others, in whole or in part, or in the business of selling electricity to
consumers, or in both businesses, the tax due under W. Va. Code '
11-13-2n
shall be equal to:
2n.1.1. Twenty-six
hundredths of one cent ($.0026) times the kilowatt hours of net generation
available for sale that was generated in this State by the taxpayer during the
taxable year. This rate is five hundredths cents ($.0005) times the kilowatt
hours of net generation available for sale that was generated in this State by
the taxpayer and sold to a plant of a customer engaged in 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. Tax due under W. Va.
Code '
11-13-2n
for any person generating electric power and an alternative form of energy at a
facility located within this State substantially from gob or other mine refuse
is five hundredths cents ($.0005) times the kilowatt hours of net generation or
production available for sale. The measure of tax under this subdivision is
total kilowatt hours of net generation available for sale that was generated or
produced in this State by the taxpayer during the taxable year regardless of
the place of sale or use, or the fact that transmission may be made to points
outside this State.
2n.1.2.
Nineteen hundredths of one cent ($ .0019) times the kilowatt hours of
electricity sold to consumers in this State that were not generated or produced
in this State by the taxpayer. The rate is five hundredths cents ($.0005) times
the kilowatt hours electricity not generated in this State by the taxpayer
which is sold to a plant in this State of a customer engaged in 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. The measure of tax
is the total kilowatt hours of electricity sold to consumers in this State
during the taxable year, that were not generated or produced in this State by
the taxpayer, to be determined by subtracting from the total kilowatt hours of
electricity sold to consumers in the State during the taxable year, the net
kilowatt hours of electricity generated or produced in the State by the
taxpayer during that year.
2n.2. Exemptions. - The provisions of W. Va.
Code '11-13-2n
shall not apply to:
2n.2.1. Kilowatt hours of
electricity generated and sold, or purchased and resold, by a municipally owned
plant.
2n.2.2. Kilowatt hours of
electric power that are separately metered and consumed in an electrolytic
process for the manufacture of chlorine.
2n.2.3. Kilowatt hours of electric power that
are separately metered and consumed in the manufacture of ferroalloy. 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 shall not include electric power used in the production of
steel.
2n.2.4. The full economic
benefits provided to the taxpayer by Sections 2n.2.2 and 2n.2.3 of this rule
shall be passed on to the manufacturer of the chlorine or ferroalloy.
2n.3. Credit. - Any person taxable
under W. Va. Code '11-13-2n(a)(2)
shall be allowed a credit against the amount of tax due under that Section for
any electric power generation taxes paid by the taxpayer with respect to the
generation of the electric power to the state in which the power was generated
or produced. The amount of credit allowed shall not exceed the tax liability
arising under W. Va. Code '11-13-2n(a)(2)
with respect to the sale of kilowatt hours of the power in a regulated
transaction in this State when that same kilowatt hour was taxed by the state
of generation.
2n.4. Transition
rule. - Until June 1, 1995, beginning March 1, 1989, electric light and power
companies shall determine their liability for payment of tax under W. Va. Code
''11-13-2n,
11-13-2d and 11-13-2m. If for taxable months beginning on or after March 1,
1989, liability for tax under W. Va. Code '11-13-2n
is equal to or greater than the sum of the power company's liability for
payment of tax under W. Va. Code '' 11-13-2d(a)(3) and 11-13-2m, then the
company shall pay the tax due under W. Va. Code '11-13-2n
and not the tax due under W. Va. Code ''11-13-2d(a)(3) or 11-13-2m. If tax
liability under W. Va. Code '11-13-2n
is less, then tax shall be paid under W. Va. Code ''11-13-2d(a)(3) and
11-13-2m, as applicable, and the tax due under W. Va. Code '11-13-2n shall not
be paid. The provisions of this Subsection of this rule expire and become null
and void for taxable years beginning on or after January 1, 1998.
2n.5. Termination Date. - Beginning June 1,
1995 and thereafter, electric light and power companies shall not determine
their tax liability under this Section.
