West Virginia Enacts Special Apportionment Rules for Motor Carriers

Recently the State of West Virginia enacted special apportionment rules for motor carriers owned by individuals, partnerships, other pass-through entities and small business corporations.  Carriers must now apportion business income to West Virginia using a single-factor formula by dividing the total vehicle miles traveled within the state during the tax year by the aggregate vehicle miles traveled everywhere.

“Vehicle mile” is defined as the operation of a motor carrier over a distance of one mile, whether owned or operated by a corporation.

West Virginia defines a “motor carrier” as any person engaging in the transportation of passengers and/or property, for compensation by motor-propelled vehicle over West Virginia roads, whether traveling on a scheduled route or otherwise. 

The above formula does not apply to motor carriers that do not own or rent real or tangible personal property in West Virginia, except vehicles, that have traveled less than 50,000 miles in the state and made no pick-ups or deliveries in the state during the taxable year; nor those that make no more than 12 trips into or through the state during the taxable year. 

The number of miles traveled under 50,000 and the miles traveled in the state during the 12 trips cannot represent more than 5% of the total vehicle miles traveled throughout the United States during the entire tax year.

The law if effective July 1, 2019 and applies to all tax years beginning on or after January 1, 2018.

You’ve heard our thoughts… We’d like to hear yours

The Schneider Downs Our Thoughts On blog exists to create a dialogue on issues that are important to organizations and individuals. While we enjoy sharing our ideas and insights, we’re especially interested in what you may have to say. If you have a question or a comment about this article – or any article from the Our Thoughts On blog – we hope you’ll share it with us. After all, a dialogue is an exchange of ideas, and we’d like to hear from you. Email us at [email protected].

Material discussed is meant for informational purposes only, and it is not to be construed as investment, tax, or legal advice. Please note that individual situations can vary. Therefore, this information should be relied upon when coordinated with individual professional advice.

© 2021 Schneider Downs. All rights-reserved. All content on this site is property of Schneider Downs unless otherwise noted and should not be used without written permission.

our thoughts on
Higher Estate Tax Exemption Amount for 2022
Michael Jackson vs. Kenny Pickett
Tax Reform 2021 - Build Back Better: Proposed Changes to Section 199A Qualified Business Income Deduction
Lease Accounting Guidelines for the Trucking Industry
Tax Reform 2021 - Build Back Better: Excess Business Losses Further Limited than Under 2017 Tax Cut and Jobs Act
Tax Reform 2021 – Build Back Better: Proposed Changes to Increase Net Investment (NII) Income Tax on S Corporation Shareholders and Limited Partners
Register to receive our weekly newsletter with our most recent columns and insights.
Have a question? Ask us!

We’d love to hear from you. Drop us a note, and we’ll respond to you as quickly as possible.

Ask us
contact us

This site uses cookies to ensure that we give you the best user experience. Cookies assist in navigation, analyzing traffic and in our marketing efforts as described in our Privacy Policy.

×