West Virginia Code of State Rules
Agency 110 - Tax
Title 110 - LEGISLATIVE RULE STATE TAX DEPARTMENT
Series 110-14C - Motor Fuel Excise Tax
Section 110-14C-4 - Determination of the average wholesale price of motor fuel

Universal Citation: 110 WV Code of State Rules 110-14C-4

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

4.1. An average wholesale price is determined for each of the following type of motor fuel: conventional motor fuel (gasoline, diesel, and kerosene), compressed natural gas (CNG); liquefied natural gas (LNG); liquefied petroleum gas (LPG -propane) and field gas.

4.1.a. The average wholesale price is rounded to the third decimal (thousandth of a cent) and does not include federal or state excise taxes.

4.1.b. The average wholesale price is applicable to each calendar year and is based on data from the preceding July 1 through October 31 review period.

4.1.c. Where price or consumption information for some portion of the July 1 through October 31 review period is not timely available, an average for the three previous years is used for the missing portion. If no relevant consumption information is available, then a unit value of one is used.

4.1.d. The wholesale price of each type of motor fuel is weighted by the consumption of each type of motor fuel.

4.1.e. The average wholesale price of motor fuel for the next calendar year will be published in the State Register and as an Administrative Notice on the Tax Department's website 30 days prior to January 1.

4.1.f. The determination of the wholesale price of motor fuel by the Tax Commissioner is presumed to be correct in any administrative proceeding.

4.2. Sources of information used in determining the average wholesale price are at the discretion of the Tax Commissioner.

4.2.a. Price information used in the determination of the average wholesale price is at the discretion of the Tax Commissioner. The source of the price will be published in the Administrative Notice which sets the average wholesale price.

4.2.b. Consumption information, where available, is obtained from motor fuel excise tax returns or other sources at the discretion of the Tax Commissioner.
4.2.b.1. Gasoline consumption information by grade (regular, midgrade, and premium) is obtained from the U.S. Energy Information Administration (EIA).

4.3. Average wholesale price calculation.

4.3.a. The consumption of motor fuel is calculated as follows:
4.3.a.1. This paragraph applies only to gasoline. The consumption of gasoline by month is calculated for each grade of gasoline by multiplying monthly gasoline consumption from motor fuel excise tax returns by the gasoline grade ratio obtained from EIA information. Algebraically,

GGRgg,m = EIAgg,m/ (ElARm + ElAMm + ElAPm)

Cgg,m = MFTGm X GGRgg,m

Where:

gg = gasoline grade (regular, midgrade, premium)

m = month (July, August, September, October)

GGRgg,m = Gasoline Ratio for gasoline grade (gg) and month (m)

ElAgg,m = Energy Information Administration consumption for gasoline grade (gg) and month (m)

ElARm = Energy Information Administration consumption for regular gasoline

ElAMm = Energy Information Administration consumption for midgrade gasoline

ElAPm = Energy Information Administration consumption for premium gasoline

Cgg,m = Consumption of gasoline by gasoline grade (gg) and month (m)

MFTGm = Gasoline consumption from motor fuel excise tax return by month (m)

4.3.a.2. The consumption of motor fuels other than gasoline by month is determined from motor fuel excise tax returns, if available, or from other sources, if applicable. Algebraically,

Comf,m = MFTOMFm

Where:

omf = other motor fuel (other conventional motor fuels, compressed natural gas, liquefied natural gas, liquefied petroleum gas, field gas)

m = month (July, August, September, October)

Comf,m = Consumption of other motor fuel (omf) and month (m)

MFTOMFm = Reported consumption of other motor fuels by month (m) from motor fuel excise tax returns, or other sources.

4.3.b. The value of consumed motor fuel by motor fuel type and month is the product of the consumed motor fuel by type and month (as in §4.3.a.) and the price of the motor fuel by type and month. Algebraically,

Vmft,m =Cmft,m X Pmft,m

Where:

mft = motor fuel type (conventional motor fuel, compressed natural gas, liquefied natural gas, liquefied petroleum gas, field gas)

m = month (July, August, September, October)

V = Value of motor fuel

C = Motor fuel consumed

P = Price of motor fuel

4.3.c. The total motor fuel consumed in the July through October review period by motor fuel type (as in §4.1) is the sum of the consumed motor fuel of included motor fuel types by month (as in §4.3.a.). Algebraically,

TCmft = [SIGMA] Cmft,m

Where:

mft = motor fuel type (conventional motor fuel, compressed natural gas, liquefied natural gas, liquefied petroleum gas, field gas)

m = month (July, August, September, October)

TO = Total motor fuel consumed

C = Motor fuel consumed

[SIGMA] = The sum of what follows

4.3.d. The total value of consumed motor fuel in the July through October review period by motor fuel type (as in §4.1) is the sum of the value of consumed motor fuel of included motor fuel types by month (as in §4.3.b.). Algebraically,

TVmft = [SIGMA] Vmft,m

Where:

mft = motor fuel type (conventional motor fuel, compressed natural gas, liquefied natural gas, liquefied petroleum gas, natural gas)

m = month (July, August, September, October)

TV = Total value of motor fuel consumed

V = Value of motor fuel

[SIGMA] = The sum of what follows

4.3.e. For each type of motor fuel (as in §4.1.), the average wholesale price is calculated as total value of consumed motor fuel (as in §4.3.d.) divided by the total motor fuel consumed (as in §4.3.c.). Algebraically,

AWP mft = TVmft/TCmft

Where:

mft = motor fuel type (conventional motor fuel, compressed natural gas, liquefied natural gas, liquefied petroleum gas, field gas)

AWP = Average wholesale price

TV = Total value of motor fuel consumed

TC = Total motor fuel consumed

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