W. Va. Code R. § 110-13-2n

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

Section 110-13-2n - Business of Generating or Producing or Selling Electric Power; Exemptions; Rates

2n.1. Rate of tax. - Until June 1, 1995, upon every person engaging or continuing within this State in the business of generating or producing electricity for sale, profit or commercial use, either directly or indirectly through the activity of others, in whole or in part, or in the business of selling electricity to consumers, or in both businesses, the tax due under W. Va. Code ' 11-13-2n shall be equal to:

2n.1.1. Twenty-six hundredths of one cent ($.0026) times the kilowatt hours of net generation available for sale that was generated in this State by the taxpayer during the taxable year. This rate is five hundredths cents ($.0005) times the kilowatt hours of net generation available for sale that was generated in this State by the taxpayer and sold to a plant of a customer engaged in manufacturing activity if the contract demand at the plant location exceeds two hundred thousand kilowatts per hour per year or if the usage at the plant location exceeds two hundred thousand kilowatts per hour in a year. Tax due under W. Va. Code ' 11-13-2n for any person generating electric power and an alternative form of energy at a facility located within this State substantially from gob or other mine refuse is five hundredths cents ($.0005) times the kilowatt hours of net generation or production available for sale. The measure of tax under this subdivision is total kilowatt hours of net generation available for sale that was generated or produced in this State by the taxpayer during the taxable year regardless of the place of sale or use, or the fact that transmission may be made to points outside this State.

2n.1.2. Nineteen hundredths of one cent ($ .0019) times the kilowatt hours of electricity sold to consumers in this State that were not generated or produced in this State by the taxpayer. The rate is five hundredths cents ($.0005) times the kilowatt hours electricity not generated in this State by the taxpayer which is sold to a plant in this State of a customer engaged in manufacturing activity if the contract demand at the plant location exceeds two hundred thousand kilowatts per hour per year or if the usage at the plant location exceeds two hundred thousand kilowatts per hour in a year. The measure of tax is the total kilowatt hours of electricity sold to consumers in this State during the taxable year, that were not generated or produced in this State by the taxpayer, to be determined by subtracting from the total kilowatt hours of electricity sold to consumers in the State during the taxable year, the net kilowatt hours of electricity generated or produced in the State by the taxpayer during that year.

2n.2. Exemptions. - The provisions of W. Va. Code '11-13-2n shall not apply to:

2n.2.1. Kilowatt hours of electricity generated and sold, or purchased and resold, by a municipally owned plant.

2n.2.2. Kilowatt hours of electric power that are separately metered and consumed in an electrolytic process for the manufacture of chlorine.

2n.2.3. Kilowatt hours of electric power that are separately metered and consumed in the manufacture of ferroalloy. As used in this Section, the term "ferroalloy" means any of the various alloys of iron and one or more other elements used as a raw material in the production of steel but shall not include electric power used in the production of steel.

2n.2.4. The full economic benefits provided to the taxpayer by Sections 2n.2.2 and 2n.2.3 of this rule shall be passed on to the manufacturer of the chlorine or ferroalloy.

2n.3. Credit. - Any person taxable under W. Va. Code '11-13-2n(a)(2) shall be allowed a credit against the amount of tax due under that Section for any electric power generation taxes paid by the taxpayer with respect to the generation of the electric power to the state in which the power was generated or produced. The amount of credit allowed shall not exceed the tax liability arising under W. Va. Code '11-13-2n(a)(2) with respect to the sale of kilowatt hours of the power in a regulated transaction in this State when that same kilowatt hour was taxed by the state of generation.

2n.4. Transition rule. - Until June 1, 1995, beginning March 1, 1989, electric light and power companies shall determine their liability for payment of tax under W. Va. Code ''11-13-2n, 11-13-2d and 11-13-2m. If for taxable months beginning on or after March 1, 1989, liability for tax under W. Va. Code '11-13-2n is equal to or greater than the sum of the power company's liability for payment of tax under W. Va. Code '' 11-13-2d(a)(3) and 11-13-2m, then the company shall pay the tax due under W. Va. Code '11-13-2n and not the tax due under W. Va. Code ''11-13-2d(a)(3) or 11-13-2m. If tax liability under W. Va. Code '11-13-2n is less, then tax shall be paid under W. Va. Code ''11-13-2d(a)(3) and 11-13-2m, as applicable, and the tax due under W. Va. Code '11-13-2n shall not be paid. The provisions of this Subsection of this rule expire and become null and void for taxable years beginning on or after January 1, 1998.

2n.5. Termination Date. - Beginning June 1, 1995 and thereafter, electric light and power companies shall not determine their tax liability under this Section.

W. Va. Code R. § 110-13-2n