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 110-26-2d - Public Service Or Utility Business

2d.1. Certain persons engaged within this State in any public service or utility business are taxable on such business and shall report the gross income from such business activities under the appropriate classification on the municipal business and occupation tax form. Only gross income derived from the supplying of public services shall be reported under the public service classifications. All income received by a public service or public utility taxpayer from activities other than the supplying of public services shall be reported under the appropriate classification on the municipal business and occupation tax return. For example, a light and power company engaged in operating a generating plant and system for distribution of electrical energy for sale, may also be engaged in selling various electrical appliances at retail. Such company would be taxable under the electric light and power company classification with respect to the sale of electric energy and also taxable under the retail classification with respect to the sale of electric appliances.

2d.2. There are certain persons who are not subject to the tax imposed under the public utility section even though such persons may be subject to the control of this State's Public Service Commission. These statutorily exempt persons are railroads, railroad car companies, express companies, pipeline companies, motor carriers, telephone and telegraph companies and water carriers by steamboat or steamship. Municipally-owned water companies and municipally-owned electric distributions systems are not subject to the tax imposed under this Section.