W. Va. Code R. § 110-26-2k

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

Section 110-26-2k - Banking And Other Financial Business

2k.1. Any person who engages, within this State, in a banking or financial business shall report gross income derived therefrom under the banking classification on the municipal business and occupation tax return. The preceding rule is applicable only to income received on or after April 1, 1971. For a definition of "Banking Business" or "Financial Organization", See Section 1a, of these rules and regulations.

2k.2. The term "Gross Income" of a banking or financial business shall mean interest, premiums, discounts, dividends, service fees or charges, commissions, fines, rents from real or tangible personal property, royalties, charges for bookkeeping or data processing, receipts from check sales, charges or fees, and receipts from the sale of tangible personal property.

2k.3. "Gross Income" of a banking or financial business shall not include:

2k.3.1. interest received on the obligations of the United States, its agencies and instrumentalities;

2k.3.2. interest received on obligations of this or any other State, territory or possession of the United States, or any political subdivision of any of the foregoing or of the District of Columbia; or

2k.3.3. interest received on investments or loans primarily secured by first mortgages or deeds of trust on residential property occupied by nontransients.

2k.4. All interest derived on activities exempt under Section 2K.3 shall be reported separately, as to amounts, on the municipal business and occupation tax return of a person taxable under the banking classification. In other words, a full disclosure must be made by such person as to the amount of exempt income he received on investments or loans primarily secured by first mortgages or deeds of trust on residential property occupied by nontransients. This exempt income must be explained in detail and separately shown on the exemptions schedule of the municipal business and occupation tax return.

2k.5. Banks and other financial businesses shall report gross income and pay tax under the banking classification only. For example, a financial organization which makes retail sales of tangible personal property shall not report the gross proceeds from sales under the retail classification but shall report the proceeds under the banking classification. Banking and financial businesses, unlike all other businesses, do not have to segregate their income or receipts into the various taxable classifications.

2k.6. Where a banking business or financial organization has several business locations, a municipality shall impose its business and occupation tax only upon gross income received at banks and branch offices located within the municipality. The presence of an automated teller machine "ATM" in a municipality shall not be treated as a business location giving rise to business and occupation tax liability in the municipality.

W. Va. Code R. § 110-26-2k