West Virginia Code of State Rules
Agency 110 - Tax
Title 110 - LEGISLATIVE RULE STATE TAX DEPARTMENT
Series 110-26 - Municipal Business And Occupational Tax
Section 110-26-10 - Taxability Of Specific Businesses

Universal Citation: 110 WV Code of State Rules 110-26-10

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

10.1. Presented below are certain specific types of business activities and brief explanations as to the applicable classification under which each should report gross income. If any taxpayer is in doubt as to the proper class or classes under which he is required to file, he should forward an inquiry to the municipality.

10.1.1. Accountants. -- Persons who are certified public accountants, public accountants, bookkeepers or who provide accounting services to others for a consideration are taxable on the gross income derived from such activities under the service classification on the municipal business and occupation tax form.

10.1.2. Automobiles and other motor vehicles. -- Persons engaged in the business of selling automobiles and other motor vehicles shall report the gross receipts therefrom under the retail or wholesale classification, depending upon the type of sale. No deduction is allowed such persons for sales made to nonresidents of this State or the municipality unless it can be conclusively established by the dealer that such sale was consummated outside the boundaries of the municipality. Gross income received for repairing automobiles of others shall be reported under the service classification.

10.1.3. Advertising agencies.
10.1.3.1. Advertising agencies are primarily engaged in the business of rendering services, but may also make sales of tangible personal property to their clients or others or make purchases of such articles as agents in behalf of their clients. Articles acquired or produced by advertising agencies may be for their own use in connection with the rendition of an advertising service or may be for resale as tangible personal property to their clients.

10.1.3.2. The gross income received for advertising services, including commissions or discounts received upon articles purchased as agents in behalf of clients, is taxable under the service classification. Included in this classification are amounts attributable to sales of tangible personal property, unless charges for such articles are separately stated in billings rendered to clients.

10.1.4. Barbers and beauticians. -- Gross income received from barbering and beautician services shall be reported under the service classification. Any gross income received from sales of tangible personal property such as hair tonic, hair spray, etc. shall be reported under the retail classification.

10.1.5. Doors, windows and awnings. -- Persons engaged in the business of manufacturing doors, windows and awnings shall report the gross income from such activities under the manufacturing classification. Persons who manufacture and make sale of such products at retail must also report the gross proceeds of sale under the retail classification. Persons who install these products must report the gross income derived therefrom under the contracting classification.

10.1.6. Laundries and dry cleaners. -- Persons who derive gross income from a laundry or dry cleaning business shall report said income under the service classification. However, sales of tangible personal property to the general public are taxable under the retail sales classification.

10.1.7. Hospitals. -- Generally, the gross income derived by hospitals for services rendered to patients shall be reported under the service classification. Some of the gross income derived from such business may be subject to tax under the retail or wholesale classification, as the case may be, if the rendition of the service involves the sale of tangible personal property.

10.1.8. Hotels and motels. -- Gross income received by hotels and motels for the renting of rooms or sleeping quarters shall be reported under the service classification. A hotel, motel, boarding house, rooming house, apartment hotel, resort lodge, or tourist camp includes all establishments which are held out to the public as a hotel, public lodging house, or places where sleeping accommodations may be obtained, whether with or without meals or facilities for preparing the same. The foregoing does not include establishments in the business of renting real estate, such as apartments, nor does it include hospitals, sanitariums, nursing homes, rest homes and similar institutions. Gross income from meals sold to the public by hotels or motels, etc. shall be reported under the retail classification.

10.1.9. Photography, photo printing, etc. -- Persons engaged in the business of photoprinting, photostating, photography, photoengraving, blueprinting, etc., are required to report the gross income from such activities as follows:
10.1.9.1. Gross income from the developing of films owned by others, is to be reported under the service classification.

10.1.9.2. Gross income from making prints, photostats, blueprints, etc., shall be reported under the manufacturing classification.

10.1.9.3. Persons who develop film owned by others and make prints therefrom shall, when a charge is made for the development process, report under the service classification the gross income derived from developing the film and under the manufacturing classification the wholesale value of the prints manufactured.

10.1.9.4. Persons engaged in the photography business who take pictures, make prints and sell the finished product at retail shall report the value of the product under manufacturing and in addition to this, shall report the gross proceeds derived from the sale under the retail classification.

10.1.10. Trading stamps. -- Persons engaged in the business of trading stamps and who have redemption centers or stores within this State shall report the gross income derived therefrom under the retail classification. Gross income received from the sale of trading stamps to merchants who dispense stamps to their customers shall be reported under the wholesale classification.

10.1.11. Coin operated machines.
10.1.11.1. Gross income received by an individual who is the owner of coin operated vending machines shall be reported under the retail classification. If the owner splits the gross income with the individual within whose establishment the vending machine is located, the operator of the establishment shall report his portion of the gross income under the service classification. The owner of the vending machines receives no deduction or exclusion from gross income for the portion paid to the establishment operator.

10.1.11.2. Gross income received by an individual who is the owner of coin operated amusement devices shall be reported under the amusement classification. If the owner splits the gross income with the individual within whose establishment the amusement device is located, the operator of the establishment shall report his portion of the gross income under the service classification. The owner of the amusement devices receives no deduction or exclusion from gross income for the portion paid to the establishment operator.

10.1.12. Wall covering and floor covering. -- Persons engaged in the business of selling and installing wall covering and floor covering shall report the gross income therefrom in the following manner:
10.1.12.1. If the sale of the product is separate and distinct from the agreement to install the product and separate charges are made for each, the vendor may report the sale under the retail or wholesale classification, as the case may be, and the installation under the contracting classification. The method by which the installation charge is computed will not alter the fact that such installation is contracting. See Section 2e of these rules.

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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