Motor carrier taxes - West Virginia

Sales & use taxes

West Virginia imposes a sales and use tax within the state. The sales tax is imposed on the sale of goods and services, and the use tax is imposed on the use of goods and services within the state on which applicable sales tax has not been paid. Credit is allowed for sales or use taxes paid to another state with respect to the purchase.

In general, motor vehicles are subject to sales and use tax; however, some exemptions do exist. Class B trucks, truck tractors, and road tractors registered at a gross weight of 55,000 pounds or more, as well as Class C trailers, semitrailers, full trailers, pole trailers, and converter gear that weigh 2,000 pounds or greater, are exempt from West Virginia sales tax. Additionally, any passenger vehicle offered for rent in the normal course of business by a daily passenger rental car business is exempt from the sales tax. Instead, a tax of $1 - $1.50 will be charged for each day of the rental period.

All gallons of gasoline or special fuel sold by a distributor to an interstate motor carrier are exempt from sales tax when:

• The motor carrier has fuel storage tanks which are used solely for the purpose of fueling motor carriers owned, leased, or operated by the motor carrier;
• The purchase is delivered in bulk quantities of 1,000 gallons or more into such fuel storage tanks; and
• The fuel is purchased for the motor carrier's exclusive use.

However, the exemption does not relieve the person owning or operating a motor carrier from payment of any taxes imposed by West Virginia Code, Chapter 11, Article 14(a) or 15(a) on gasoline or special fuel used or consumed within West Virginia by the motor carrier.

Special provisions exist for motor carriers regarding the computation of tax due. A motor carrier must first determine the gross amount of tax due of motor fuel used in the operation of the motor carrier within this state during the preceding quarter, as if all gasoline and special fuel had been purchased out-of-state. Second, the taxpayer must determine the total tax paid on all motor fuel purchased within the state for use in the operation of a motor carrier. If the calculation from step one is larger than the calculation from step two, the difference is the amount of tax due to West Virginia. If the calculation from step two is larger than the calculation from step one, the difference is refunded or credited to the taxpayer.