West Virginia Adopts New Regulations Outlining Per Se Exemption for Construction Contractors Performing Work for Public Projects

Saturday, November 19th, 2011

 
 
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West Virginia
General

West Virginia recently adopted new regulations concerning per se sales tax exemptions for construction contractors working for public service districts or government-owned water or sewer utilities. According to the new regulations, which take effect November 15, 2011, "purchases of services, machinery, supplies, or materials, except gasoline and special fuel, to be directly used or consumed in the construction, alteration, repair or improvement of a new or existing public utility structure or system by a contractor a subcontractor providing contracting services to a public utility are per se exempt from Consumers Sales and Service Tax and Use Tax."

The exemption applies to purchases of tangible personal property that will remain on the construction site, rentals of construction equipment, and purchases made by subcontractors that would otherwise qualify for the exemption if purchased by the prime contractor. However, the exemption does not apply to purchases of property that will become property of the contractor or subcontractor and are removed from the construction site upon completion of the contract.

Because the exemption is per se, no exemption certificate is required to claim it. Contractors and subcontractors may claim the exemption by either submitting a refund claim to the Tax Department or providing Form WV CST-286, "Special Contractors Exempt Purchases Certificate" when making qualifying purchases. The form must contain the public utility's tax identification number.

 


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TTR has a website that companies subscribe to and use daily. This website provides a list of everything that can be bought or sold in the U.S. It provides simple answers to whether buying or selling these items is taxable (subject to a sales tax or other tax), and it provides all the legal authority to support these tax answers.

TTR likes to keep things simple and fun, which is why it has great people who provide help to clients on any support questions they have about transaction tax issues.

Please visit TTR on the web at www.ttrus.com or call 866.578.8193.

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