Our Dash of SALT Blog provides the most recent developments and changes in state and local tax regulations. Here are the latest updates for West Virginia.
February 17, 2026
West Virginia Tax Division Clarifies Sourcing Rules for Non-Business Income
Authored by: Courtney Easterday, MSA, Kiana McGowan, CPA, MBA
West Virginia’s Tax Division has updated Publication TSD 392 to clarify that multistate corporations may allocate nonbusiness income, such as specific rents and royalties, capital gains, interest, dividends, and certain intellectual property royalties, to the state where the income is generated. Remaining business income is then apportioned to West Virginia using the single sales factor. The publication also explains that any income, gain, loss, deduction, or credit distributed to a corporate partner is considered business income and must be apportioned accordingly.
Taxpayers and tax preparers should be familiar with these updated sourcing rules to ensure proper reporting and compliance for West Virginia corporation net income tax purposes.
Please find the full Publication here.
If you have questions about business apportionment vs. nonbusiness allocation, please reach out to a member of the Withum SALT Team.
June 13, 2024
Parts Used to Repair Transport Trucks Do Not Qualify for Sales Tax Exemption
Authored by: Leroy Solis, MBA and Penny Sweeting, CPA
J.F. Allen Inc. argued before the West Virginia Intermediate Court of Appeals that the West Virginia Department of Revenue’s $6,000 assessment of additional sales tax was erroneous. Specifically, the taxpayer argued that parts and materials purchased to repair vehicles that transport limestone from a crusher to storage are directly used in the manufacturing process and are thus exempt from sales tax.
The Court found the boulders were unchanged after they exited the crusher, which is the point where the manufacturing process is complete. Therefore, parts and materials used to repair trucks carrying the boulders from the crusher to storage were not part of the manufacturing process and are taxable. [ J.F. Allen Co. v. Irby, W. Va. Ct. App., No. 23-ICA-327, oral arguments held 5/21/24.]
If you have questions about sales tax exemptions for manufacturing, please reach out to a member of the Withum SALT Team.
Disclaimer: Please note this is the information that is readily available at this time, it is subject to change so please consult your Withum tax advisor.
Have Questions or Need Guidance?
For more information on this topic, please contact a member of our team.