W. Va. Code R. § 110-21F-12

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

Section 110-21F-12 - Forfeiture of coal severance tax rebate

12.1. The failure to timely apply for the rebate results in the forfeiture of 25 percent of the rebate amount otherwise allowable under W. Va. Code § 11-13EE-1, et seq. This 25 percent forfeiture penalty applies each year until the properly completed application for rebate is filed with the State Tax Commissioner.

12.2. Exceptions to forfeiture are set forth below.

12.2.1. The qualified investment property may not be treated as disposed of under W. Va. Code § 11-13EE-9 by reason of a mere change in the form of conducting the business, as long as the qualified investment property continues to be used at the coal mining operation at which it was originally placed in service or use by the transferor business in this state, and the transferor business retains a controlling interest in the successor business. In order to avoid forfeiture, the successor business must continue to operate the same qualified investment property at the coal mining operation in this state at which the qualified investment property was first placed in service or use subject to the requirements in W. Va. Code § 11-13EE-1, et seq., and this rule regarding use and duration.

12.2.1.a. Under the scenario described above, the successor business can claim the rebate amount of credit still available with respect to the qualified investment property that was transferred.

12.2.1.b. Under the scenario described above, the transferor business is not required to redetermine the amount of rebate allowed in earlier years.

12.2.2. Qualified investment property is not treated as disposed of under W. Va. Code § 11-13EE-11 by reason of any transfer or sale to a successor business which continues to operate the same qualified investment property at the coal mining operation in this state at which the qualified investment property was first placed in service or use subject to the requirements in W. Va. Code § 11-13EE-1, et seq., and this rule regarding use and duration.

12.2.2.a. Upon transfer or sale of qualified investment property and the coal mining operation, the successor shall acquire the amount of rebate, if any, that remains available under W. Va. Code § 11-13EE-1, et seq.

12.2.2.b. Upon transfer or sale of qualified investment property and the coal mining operation, the transferor business is not required to redetermine the amount of rebate allowed in earlier years.

12.3.Notice of transfer to Tax Commissioner. -- Within 30 days after transfer of qualified investment property and the coal mining operation to a successor business, the transferor shall provide notice to the Tax Commissioner of the transfer and provide such information about the transfer that the Tax Commissioner may require.

W. Va. Code R. § 110-21F-12