West Virginia Code of State Rules
Agency 110 - Tax
Title 110 - LEGISLATIVE RULE STATE TAX DEPARTMENT
Series 110-13B - Telecommunications Tax
Section 110-13B-2 - Definitions

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

Current through Register Vol. XLI, No. 38, September 20, 2024

As used in these regulations and unless the context clearly requires a different meaning, the following terms shall have the meanings ascribed herein, and shall apply in the singular or in the plural.

2.1. Article 13B. West Virginia Code '11-13B-1 et seq.

2.2. Business. The term "business" shall include all activities engaged in or caused to be engaged in with the object of gain or economic benefit, either direct or indirect.

2.3. Communications channel. The term "communications channel" or "channel" means the smallest discrete circuit or other means whereby a message, conversation, data set or signal may be communicated, and which cannot be subdivided without destroying or diminishing its capacity to carry such communications.

2.3.1. Voice grade channel. The term "voice grade channel" is a channel suitable for transmission of speech, digital or analog data, or facsimile, with a frequency range of zero (0) to four thousand (4000) cycles per second (Hz).

2.3.2. Voice grade equivalent (VGE). The term "voice grade equivalent" or "VGE" means the equivalent of a channel suitable for the transmission of speech, digital or analog data, or facsimile, with a frequency range of zero (0) to four thousand (4000) cycles per second (Hz). For purposes of the telecommunications tax and except for telegraph channels, a voice grade equivalent is deemed to be a "communications channel." Every four thousand (4000) Hz of usable band width (capacity) including capacity used for signalling and supervision constitutes one (1) channel, except that one (1) telegraph channel is one (1) channel for the purposes of the tax, because one (1) voice grade channel can carry twelve (12) telegraph channels.

2.4. Communications pathway. The term "communications pathway" means any conduit, wire, cable, microwave signal path, radio signal path or other pathway over which telecommunications can be carried and includes communications channel(s). The length of the communications pathway of satellite repeater facilities or other satellite communications facilities is deemed to be the shortest distance over the surface of the earth between the point on the earth from which signals are sent to the satellite and the point on the earth where such signals are received from the satellite.

2.4.1. A communications pathway consists of a signal conversion device at each end, transmitter, channel and receiver. Communication pathways include, but are not limited to telephone lines, microwaves, coaxial links, wave guides, satellites, lasers, cables and fiber optics.

2.4.2. A communication pathway is only counted once as such, regardless of the number of times it is used to make separate paths. For example, in the diagram below, Pathway AB splits into three (3) sections: BC; BD and BE. Pathway AB would only be counted once although it is used three times in carrying a signal from point A to points C, D and E.

C

A -- -- -- -- -- B -- -- -- -- -- -D

E

2.5. Delegate. The term "delegate" and the phrase "or his delegate," when used in reference to the Tax Commissioner, means any officer or employee of the State Tax Department duly authorized by the Tax Commissioner directly, or indirectly, by one or more re-delegations of authority, to perform the function mentioned or described in Article 13B or regulations promulgated thereunder.

2.6. Gross income. The term "gross income" of a telephone company or communications carrier shall be defined as all gross income received from the provision of local exchange or long distance voice or data communication services but shall not include gross income from the provision of network access, billing or similar services provided to end users, other telephone companies, or communications carriers. On or after July 1, 1988, the term "gross income" of a telephone company or communications carrier shall not include gross income from the provision of commodities or services which shall be determined by the Public Service Commission of West Virginia to be subject to competition. The Public Service Commission of West Virginia will submit to the Tax Commissioner, on or before December 31 of each calendar year, a listing of those commodities or services the trading in which it has determined to be subject to competition. Such listing shall constitute a conclusive determination for the purpose of defining "gross income" of a telephone company or communications carrier for the next succeeding calendar year.

2.6.1. For the purposes of this definition, commodity means something that is useful or serviceable as an article of merchandise, i.e., good, stock, produce, article of commerce, ware, merchandise, product, staple, article of trade, capital good, resource, personal property, or raw material.

2.6.2. Gross income does not include income received from the provision of commodities except to the extent stated above.

2.7. Person. The term "person" or "company" are herein used interchangeably and include any individual, firm, partnership, mining partnership, joint venture, association, corporation, trust or any other group or combination acting as a unit, and the plural as well as the singular number, unless the intention to give a more limited meaning is declared by the context.

2.8. Sale. The term "sale" includes any transfer of the ownership or title to property or any provision of a service, whether for money or in exchange for other property or services, or a combination thereof.

2.9. Tax Commissioner. The term "Tax Commissioner" means the Tax Commissioner of the State of West Virginia, or his delegate.

2.10. Taxable year. The term "taxable year" means the calendar year, or the fiscal year ending during such calendar year, upon the basis of which the telecommunications tax liability is computed. "Taxable year" means, in the case of a return made for a fractional part of a year under the provisions of Article 13B, or under further regulations promulgated by the Tax Commissioner, the period for which such return is made.

2.11. Taxpayer. The term "taxpayer" means and includes any individual, partnership, joint venture, association, corporation, receiver, trustee, guardian, executor, administrator, fiduciary or representative of any kind engaged in telecommunications business activity.

2.12. Telecommunications. The term telecommunications" means all telephone, radio, light, lightwave, radio-telephone, telegraph and other communication, or means of communication, whether using voice communication, computer data transmission, or other encoded symbolic information transfers. The term does not include commercial broadcast radio or television, cable television or amateur or citizen band radio or the use or accessing of telecommunications devices incidental to the provision of other services.

2.13. Telecommunications business. The term "telecommunications business" means and includes any business where the provision of telecommunication services for others is the essence of the business activities and, therefore, it does not include businesses which merely provide telecommunication services incidental to the provision of other services. The transmission of signals is the focus of a telecommunications business as opposed to providing access to a specialized body of information.

Disclaimer: These regulations may not be the most recent version. West Virginia may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.
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