W. Va. Code R. § 110-99-4

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

Section 110-99-4 - Administration of Tax

4.1. Filing returns. -- The retailer shall file quarterly returns showing gross revenues from all sales of hemp-derived cannabinoid or kratom products on a form prescribed by the Tax Commissioner.

4.1.1. The return shall be filed on the 20th day of the month following the end of each calendar quarter. For example, for the calendar quarter ending March 31, the return must be filed by the following April 20.

4.1.2. Returns shall be filed electronically.

4.2. Payment of tax.

4.2.1. The privilege tax on sales of hemp-derived cannabinoid and kratom products is due and payable at the time the return is filed.

4.2.2. The measure of tax shall be the gross revenues from all sales of hemp-derived cannabinoid or kratom products during the previous calendar quarter.

4.2.3. Payment of the tax shall be by electronic funds transfer, unless prohibited by federal law.

4.3. Products containing both hemp-derived cannabinoids and kratom. -- Products containing both hemp-derived cannabinoids and kratom are not subject to both the tax on hemp-derived cannabinoids products and the tax on kratom products. If a product contains both hemp-derived cannabinoids and kratom, the retailer shall treat the product as a kratom product for the purposes of this rule and pay the tax on kratom products.

4.3.1. If a product contains both hemp-derived cannabinoids and kratom and is subject to tax on kratom, the retailer shall treat the product as a kratom product for the purposes of this rule and pay the tax on kratom products. Example: Gummies contain both Delta-9 and kratom. Because the gummies are for human consumption, they are subject to tax on kratom products. The retailer should report and pay the privilege tax as a kratom product.

4.3.2. If the product contains both hemp-derived cannabinoids and kratom, but is not subject to the tax on kratom, then the retailer may treat the product as a hemp-derived cannabinoid product. Example: A lotion contains both Delta-9 and kratom. Because the lotion is not for human consumption, it is not subject to the tax on kratom products. The retailer should report and pay the privilege tax.

W. Va. Code R. § 110-99-4