West Virginia Code of State Rules Agency 110 - Tax
📘 Agency Overview
Agency 110, under the West Virginia State Tax Department, administers and enforces tax laws as authorized by the West Virginia Legislature. The rules are codified in Title 110 of the Code of State Rules and are organized into various series, each addressing specific tax types and administrative procedures.
🧾 Key Tax Series and Provisions
Series 110-21 – Personal Income Tax
This series outlines the imposition of personal income tax on residents and nonresidents of West Virginia. Key sections include:
Section 110-21-3: Imposition of tax; minimum tax; persons subject to tax.
Section 110-21-4: Rate of tax.
Section 110-21-11: West Virginia taxable income of resident individuals.
Section 110-21-31: West Virginia taxable income of nonresident individuals.
For instance, Section 110-21-31 specifies that a nonresident's taxable income includes items derived from or connected with West Virginia sources. The same tax rates applicable to residents also apply to nonresidents. Justia Regulations
Series 110-15 – Consumer Sales and Service Tax and Use Tax
This series governs the imposition of sales and use taxes on goods and services within the state. Notable sections include:
Section 110-15-11: Imposition of tax on gasoline and special fuels.
Section 110-15-33: Persons rendering services.
Section 110-15-9: Exemptions.
Section 110-15-123: Direct use concept.
Section 110-15-11 addresses the taxation of gasoline and special fuels, stating that all sales of these fuels by distributors or importers are subject to the consumer sales and service tax and use tax, except when sold to another distributor for resale or qualifying as a bulk sale. Justia Regulations
Section 110-15-33 outlines that individuals engaged in dispensing, rendering, or providing taxable services in West Virginia are required to collect the consumer sales and service tax from their customers on the gross proceeds derived from such services. Justia Regulations
Section 110-15-9 lists various exemptions from sales and use taxes, including specific types of transactions and the status of the vendor, purchaser, or user. Justia Regulations
Section 110-15-123 introduces the "direct use concept," stating that the applicability of sales and use tax depends on the classification of the business purchasing the property or service and the use of the property or service being purchased. Justia Regulations
⚖️ Relevant Case Law
While specific case law interpreting Agency 110 rules is limited, the application of these regulations is often addressed in administrative rulings and decisions by the West Virginia Office of Tax Appeals. For example, disputes regarding the classification of income as West Virginia-source income for nonresidents are common. In such cases, the principles outlined in Series 110-21-31 are applied to determine tax liability.
🛠 Practical Applications
Tax Filing: Residents and nonresidents must report income derived from West Virginia sources on their tax returns, applying the appropriate tax rates as specified in Series 110-21.
Sales and Use Tax Compliance: Businesses providing taxable goods or services in West Virginia are required to collect and remit sales and use taxes, adhering to the provisions in Series 110-15.
Exemptions: Entities claiming exemptions from sales and use taxes must ensure their transactions meet the criteria outlined in Section 110-15-9.
Direct Use Determination: Businesses should assess whether their purchases qualify for exemption under the direct use concept by evaluating the integral and essential nature of the property or service to their operations, as per Section 110-15-123.
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