W. Va. Code R. § 110-26-3

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

Section 110-26-3 - Exemptions

3.1. Business exempt from tax. -- The municipal business and occupation tax law exempts from the tax the following businesses:

3.1.1. Insurance companies which pay the State of West Virginia a tax upon premiums: Provided, however, That this exemption shall not extend to that part of the gross income of insurance companies which is received for the use of real property, other than property in which the insurance company maintains its office or offices, in this State, whether the income be in the form of rentals or royalties.

3.1.2. Nonprofit cemetery companies organized and operated for the exclusive benefit of their members.

3.1.3. Fraternal societies, organizations and associations, which are organized and operated for the exclusive benefit of their members and not for profit. However, this exemption shall not extend to that part of the gross income arising from sale of alcoholic liquor, food and related services, of such societies, organizations and associations which are licensed as private clubs under the provisions of W. Va. Code '60-7-1 et seq.

3.1.4. Corporations, associations and societies organized and operated exclusively for religious or charitable purposes.

3.1.5. Production credit associations, organized under the provisions of the federal "Farm Credit Act of 1933".

3.1.6. Any credit union organized under the provisions of W. Va. Code '31-1-1 et seq. or any other chapter of the West Virginia Code. However, the exemptions of this Section shall not apply to corporations or cooperative associations organized under the provisions of W. Va. Code '19-4-1 et seq.

3.1.7. Gross income derived from providing advertising services rendered in the business of radio and television broadcasting.

3.1.8. The gross income or gross proceeds of sale of a gasification or liquification of coal project in the demonstration, pilot or research stages. To qualify for this exemption the Tax Commissioner must first certify the project as eligible. Such exemption shall expire seven years from the date the project first receives gross income or gross proceeds from sales.

3.2. Business exempt by specific statutes.

3.2.1. Public service district for water and sewage services. -- Public service districts providing water and sewage services organized in compliance with the provisions of W. Va. Code '16-13A-1 et seq., are exempt from the payment of the municipal business and occupation tax. This is an exemption provided by specific statute and is only available to those public service districts that have complied with all the requirements as set forth in the above cited provisions of the Code.

3.2.2. Municipal waterworks. -- Waterworks in the State of West Virginia which are organized and/or operated by a municipal corporation in compliance with the provision of W. Va. Code '8-12-1 et seq., entitled, "Waterworks", are exempt from the payment of the municipal business and occupation tax. This is an exemption provided by specific statute and is only available to those municipal waterworks that have complied with all requirements as set forth in the aforecited provisions of the Code.

3.2.3. Municipal combined waterworks and sewage systems. -- Waterworks and sewage systems in the State of West Virginia which are organized and/or operated by a municipal corporation in compliance with the provisions of W. Va. Code '8-13-1 et seq., as amended, entitled, "Combine Waterworks and Sewage Systems", are exempt from the payment of the municipal business and occupation tax. This is an exemption provided by specific statute and is only available to those municipal waterworks and sewage systems that have complied with all the requirements as set forth in the above cited provisions of the Code.

3.2.4. Municipal and sanitary district sewage works. -- Sewage works in the State of West Virginia are organized and/or operated by any municipal corporation and/or sanitary district in compliance with the provisions of W. Va. Code '16-13-1 et seq., are exempt from the payment of the municipal business and occupation tax. This is an exemption provided by specific statute and is only available to those sewage works of municipal corporations and sanitary districts that have complied with all the requirements as set forth in the aforecited provisions of the Code.

3.2.5. Horse racing and dog racing. -- Persons engaged in the business of horse racing or dog racing and organized in compliance with the provisions of W. Va. Code '19-23-1 et seq., are exempt from the payment of the municipal business and occupation tax. This is an exemption provided by specific statute and is only available to those persons that have complied with all the requirements as set forth in the provisions of the Code. However, those public conveniences, such as golf courses and other recreational activities and motel or hotel operations from which persons engaged in horse racing or dog racing derive income, are subject to the municipal business and occupation tax under the appropriate classifications.

3.2.6. West Virginia business development corporations. -- Business development corporations organized in compliance with the provisions of W. Va. Code '31-14-1 et seq., are exempt from payment of the municipal business and occupation tax.

W. Va. Code R. § 110-26-3