A recently-introduced bill in the West Virginia Senate would impose a new tax on companies that provide digital advertising services. SB 605, introduced on March 9 by Senator Rupie Phillips (R-Logan 07), would impose a gross receipts tax on the annual gross revenues of a taxpayer derived from digital advertising services in the state.
West Virginia
West Virginia governor vetoes rental company marketplace facilitator bill
By Jonathan Feldman on
Posted in Marketplace
The West Virginia governor vetoed S.B. 163, which would require vacation rental platforms and hotel booking platforms to collect and remit local occupancy taxes. It is believed the veto is tied to technical concerns about how the localities are to collect the tax.
The bill passed the senate unanimously and the house by a…
Webcast: 2020 – The year of digital taxation
By Charles Capouet & Samantha Trencs on
Posted in Digital Economy, Events and Webcasts
In 2020, state and local tax practitioners have witnessed the emergence of a new trend: the proposed taxation of advertising services and data usage. In this Bottom Line webcast, Charles Capouet and Samantha Trencs discuss:
- the proposed Maryland tax on gross revenues from digital advertising services
- potential expansions of the Nebraska and South Dakota
…
West Virginia Proposes Data Mining Service Tax
Posted in Digital Economy
On February 11th, West Virginia Delegate Cody Thompson (Democrat) introduced House Bill 4898, which would impose a general data mining service tax. The bill would require “commercial data operators” generating revenue from the use, collection, processing, sale, or sharing of West Virginians’ user data to pay the tax at the rate of one cent…
West Virginia Court Rules that Credit for Taxes Paid to Other States Must Include Local Taxes
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Posted in Southeast
By Mike Kerman and Open Weaver Banks
The West Virginia Supreme Court held that a credit for taxes paid to other states on purchases of motor fuel is constitutional only if interpreted to include taxes paid to subdivisions of other states. The court determined that a credit that applies only to taxes paid to other…
Pump the Brakes: West Virginia OTA Finds Nexus Exists for Garage Equipment Seller
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Posted in Noteworthy Cases, Policy and Legislation
By Ted Friedman and Carley Roberts
The West Virginia Office of Tax Appeals (OTA) ruled that an out-of-state corporation, with no physical location or employees in West Virginia, owed sales and use tax on sales of garage equipment in the state. The OTA determined that the corporation had nexus with West Virginia based on its…
West Virginia Office of Tax Appeals Rules That the Presence of Independent Contractors Establishes Sales Tax Nexus
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Posted in Noteworthy Cases, Policy and Legislation
By Jessica Eisenmenger and Amy Nogid
The West Virginia Office of Tax Appeals (OTA) upheld a sales tax assessment against an out-of-state company that provided taxable outside maintenance services such as snow removal and window cleaning in the state via independent contractors. The Administrative Law Judge reasoned that since “nothing happens” unless the independent contractors…
WV Tax Department’s Application of Tax Credit for Sales Tax Paid to Other States Not Supported by Statute, Violated Internal Consistency
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Posted in Policy and Legislation
By Olga Goldberg and Leah Robinson
The West Virginia Office of Tax Appeals (OTA) ruled in favor of a rail transportation company subject to use tax on fuel used in West Virginia because the West Virginia State Tax Department (Department) incorrectly applied the credit against use tax for sales tax paid to “another state.” First…
Efforts to Expand Economic Nexus Stall in West Virginia
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Posted in Noteworthy Cases
The West Virginia Supreme Court of Appeals held that an out-of-state licensor of intangible property did not have nexus in West Virginia despite products bearing its intangible property being sold in the state. Griffith v. ConAgra Brands, Inc., Dkt. No. 10-AA-02 (W. Va. May 24, 2012). The decision is an important taxpayer victory, particularly for licensors of intangible property.
ConAgra Foods, Inc., a food products company, established and transferred to a wholly owned subsidiary, ConAgra Brands (CA Brands), numerous trademarks and trade names. CA Brands also acquired intangibles from unrelated third parties. CA Brands licensed the intangibles to related and unrelated parties in return for royalty payments. The licensed food products were manufactured by the licensees outside of West Virginia and were sold or distributed to wholesalers and retailers in several states, including West Virginia. CA Brands had no physical presence in West Virginia, and it did not control how the licensees distributed the products bearing the CA Brands’ intangibles.Continue Reading Efforts to Expand Economic Nexus Stall in West Virginia
Would You Like Tax With That?
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Posted in In the News
West Virginians (and hungry road-trippers passing through the state) may soon face a new tax on their drive-through purchases. The West Virginia Department of Transportation has proposed charging an additional five percent tax on food and beverages purchased at drive-through windows, in addition to the six percent customers already pay.
The proposal is one…