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West Virginia Supreme Court extends Wynne to sales and use tax credits of municipal taxes

On Nov. 16, 2016, the West Virginia Supreme Court of Appeals affirmed a decision holding that use tax credits are applicable to sales taxes paid to both states and their local subdivisions on purchases of locomotive fuel. The Court held that not applying the credit for taxes paid to municipalities would violate the Commerce Clause of the U.S. Constitution. This decision is an extension of the U.S. Supreme Court’s decision in Comptroller of the Treasury v. Wynne, which held state income tax credits are applicable to income taxes paid to municipalities.