West Virginia Code of State Rules
Agency 110 - Tax
Title 110 - LEGISLATIVE RULE STATE TAX DEPARTMENT
Series 110-13AC - Reduced Severance Tax Rates for Thermal or Steam Coal
Section 110-13AC-3 - Definitions
Current through Register Vol. XLI, No. 38, September 20, 2024
Unless a specific definition is provided in this section, terms used in this rule are defined as provided in W. Va. Code § 11-13A-1,et seq. and legislative rule W. Va. Code St. R. § 110-13A-1, et seq., unless the context in which the term is used clearly requires a different meaning. The following terms shall have the meaning ascribed herein and shall apply in the singular as well as in the plural.
3.1. Coal. -- The term "coal" means and includes any material composed predominantly of a solid, brittle, stratified, combustible carbonaceous rock formed by the decomposition of vegetation, containing varying quantities of the elements of carbon, hydrogen, oxygen and nitrogen. "Coal" includes but is not limited to peat, lignite, bituminous, anthracite and various intermediary forms of coal.
3.2. Thermal or steam coal. -- The term "thermal or steam coal" means coal sold for the purpose of generating electricity. For coal to qualify as thermal or steam coal, the coal must be sold by the taxpayer claiming the reduced severance tax rate either directly to an electric power company for the purpose of generating or producing electricity or by using services of a broker to sell to an electric power company for the purpose of generating or producing electricity.
3.3. Electric power company. -- The term "electric power company" means a company engaged in the business of manufacturing, generating, supplying, or manufacturing, generating and supplying electricity for light, heat, or power to consumers or for its own use.
3.4. Sale. -- The term "sale" includes any transfer of the ownership or title to property, whether for money or in exchange for other property or services, or any combination thereof.
3.5. Broker. -- For the limited purposes of this Rule, a "broker" is an agent who sells goods or property for a principal, or a person who functions as an intermediary between two parties in order to arrange or negotiate an agreement or contract. A broker may also acquire title to or ownership of the goods or property and resell those goods or property to a third-party. References in this Rule to sales of coal to an electric power company include sales by the producer of the coal made directly to the electric power company or to the electric power company through the services of a broker where the broker is:
Sales from a producer to other entities, such as third-party sellers, marketers, processors, or blenders, may be considered a sale to a broker under this rule, when those entities take title of the coal from the producer, sell the coal to an electric power company to be used in generating or producing electricity, and those entities provide an attestation of that sale as set forth in section 110-13AC-6 of this rule.
