W. Va. Code R. § 110-13-2e

Current through Register Vol. XLI, No. 50, December 13, 2024

Section 110-13-2e - Business of Gas Storage; Effective Date

2e.1. Rate of tax. - Until July 1, 1995, upon every person engaged or continuing within this State in any gas storage business utilizing one or more gas storage reservoirs located within this State, the tax due under W. Va. Code '11-13-2e is five cents (.05) multiplied by either (1) the net number of dekatherms of gas injected into a gas storage reservoir during a tax month or (2) the net number of dekatherms of gas withdrawn from a gas storage reservoir during a tax month, whichever is applicable for that month, whether or not the gas is owned by, or is injected or withdrawn for, the storage operator or any other person; Provided, That Effective July 1, 1995, the net number of dekatherms of gas injected or the net number of dekatherms withdrawn from a gas storage reservoir shall not exceed the storage utilization index as defined in this Section. For purposes of this Section, storage utilization means the utilization of a storage reservoir, through the operation of existing and functional facilities available for storage use during the five (5) year base period ending December 31, 1994, and the "storage utilization index" is the five year average of taxable dekatherms as determined for each taxable period of the stated base period.

2e.2. Fractional parts of dekatherms. - The number of dekatherms of gas injected or withdrawn from a gas storage reservoir includes fractional parts of dekatherms to be taxed at the following rates:

2e.2.1. From 0 up to but not including .2 dekatherms at one cent;

2e.2.2. From .2 up to but not including .4 dekatherms at two cents;

2e.2.3. From .4 up to but not including .6 dekatherms at three cents;

2e.2.4. From .6 up to but not including .8 dekatherms at four cents; and

2e.2.5. From .8 up to and including 1 dekatherm at five cents.

2e.3. Measurement. - At each point where gas may be injected or withdrawn from gas storage reservoirs located within this State, the taxpayer must install meters or other appropriate means to determine the number of dekatherms of gas injected into and withdrawn from storage. In order for gas consumed as fuel or gas for compressors used to pump gas into or out of storage or used in a recycling operation to be excluded from the gas subject to this tax, the operator of a storage facility must measure the amount of the gas injected into or withdrawn from storage which is used as fuel or in the recycling operation.

2e.4. Administration; installment payments. - The taxpayer shall submit the tax due under W. Va. Code '11-13-2e in accordance with instructions and forms provided by the Tax Commissioner. The tax due shall be administered, collected and enforced as provided in the West Virginia Tax Crimes and Penalties Act, W. Va. Code '11-9-1 et seq; and W. Va. Code '11-13-1 et seq., and this rule promulgated pursuant thereto, and shall be remitted in periodic installment payments as provided in Section 4 of this rule, except that the payments shall be remitted on or before the twentieth (20th) day of the month following the month or quarter in which the tax accrued.

2e.5. Notice of retirement from service. - A taxpayer subject to the tax due under this Section shall provide written notice to the Joint Committee on Government and Finance and the Department of Tax and Revenue eighteen (18) months prior to the retirement from service of a storage reservoir.

2e.5.1. Failure to provide notice may result in liability for tax for months in which notice was required.

W. Va. Code R. § 110-13-2e