West Virginia Code of State Rules › Agency 110 - Tax › Title 110 - LEGISLATIVE RULE STATE TAX DEPARTMENT › Series 110-15 - Consumer Sales And Service Tax And Use Tax › Section 110-15-117 - Specific Businesses with Contracting Issues

Current through Register Vol. XLI, No. 28, July 12, 2024
117.1. Carpentry. - Persons engaged in the
				business of carpentry, (as the trade is known in the usual course of business)
				are generally considered to be rendering, furnishing or performing a service,
				the gross receipts from which are subject to consumers sales and service tax,
				when the work does not result in a capital improvement to a building, structure
				or real property.
117.2. Chimney
				Cleaning. - The cleaning and servicing of chimneys of gas, oil or woodburning
				stoves, furnaces or fireplaces in residential dwellings is a service subject to
				consumers sales and service tax.
117.3. Demolition. - The charges for the
				demolition of a building or structure (or any part of either) is contracting
				and is not subject to the consumers sales and service tax. In general, the
				demolition of buildings or structures constitutes an improvement to land,
				because it enhances the value of land in preparing it for its best
				use.
117.4. Draperies and Drapery
				Hardware. - Retailers who contract to sell and install draperies, including
				drapery hardware, such as brackets, rods, tracks, etc., are retailers of the
				items which they furnish and install. Tax applies to the entire contract price
				including the charge for installation. Installers who furnish drapery hardware
				or other tangible personal property may accept resale certificates from
				department stores or other sellers to furnish and install the draperies and
				drapery hardware. Department stores or other retailers furnishing resale
				certificates are required to collect and remit the consumers sales and service
				tax to this State upon the gross receipts which they derive from selling and
				installing the draperies and drapery hardware.
117.5. Electrical Repair and Installation. -
				Persons engaged in the business of repairing or installing electrical wiring,
				fixtures, switches in or on real property or repairing or installing any
				article of personal property powered by electric current are rendering,
				furnishing or performing a service, the gross receipts from which are subject
				to tax unless the repair results in a capital improvement. "Repair" is
				synonymous with mend, restore, maintain, replace, or service. A "repair"
				contemplates an existing structure or thing which has become imperfect and
				constitutes the restoration to the original existing structure that which has
				been lost or destroyed. A "repair" that is a capital improvement to a building
				or other structure or to real property is treated as a contracting service
				which is exempt from the consumers sales and service tax. A "repair" that is
				not a capital improvement is one that does not materially add to the value or
				substantially prolong the useful life of the property. "Installation" includes
				affixing electric wiring, fixtures or switches to real property, affixing any
				article of personal property powered by electric current to any other article
				of personal property, or making any article of personal property powered by
				electric current operative with respect to its intended functional purpose. Tax
				does not apply to electrical installation repair when the service is on or
				connected with a structural change (capital improvement) to a building or
				similar structure, whether the structural change be internal or external to the
				building or structure. For example, the electrical repair or installation on or
				connected with new construction on buildings or structures would not be subject
				to the consumers sales and service tax.
117.6. Excavation Services.
117.6.1. The charges for excavation services
				by a contractor who provides his equipment and operator to perform a specific
				job in the manner to be directed or controlled by the contractor are
				contracting services exempt from the consumers sales and service tax.
117.6.2. Charges for the basic rental of
				equipment are subject to the consumers sales and service tax. Where the rental
				includes the services of an operator the charges for the operator are also
				subject to consumers sales and service tax.