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 110-15-107 - Contracting: General Rules

Current through Register Vol. XLI, No. 28, July 12, 2024
107.1. Application. - This regulation
				prescribes the rules which persons engaged in the business of contracting must
				follow to comply with this State's consumers sales and use tax laws, W. Va.
				Code ''11-15 and 11-15A. The word "contracting" as used herein is a word of
				art. It is important for the taxpayer to first determine whether he is engaged
				in contracting activity as outlined in these regulations before applying these
				rules to his activities. A person who provides contracting services does not
				collect consumers sales or use tax from his customer on the gross proceeds he
				derives from providing the contracting service. Such persons are generally
				taxable on all of their purchases of tangible personal property or taxable
				services for use or consumption in providing the tax exempt contracting
				service. Leases of tangible personal property are also taxed. For a person
				engaged solely in the business of contracting, these rules are not difficult.
				Frequently, however, persons engaged in the business of contracting are also
				engaged in other business activities which are subject to different rules. A
				person engaged in two or more business activities or in different types of
				contracting must learn what the different rules are and when they apply.
				Otherwise, such person may find that he has overpaid or underpaid his consumers
				sales and use tax liability. For example, a person engaging in tax exempt
				contracting activity may also provide taxable repair services or sell tangible
				personal property. While a person engaging in tax exempt contracting must
				generally pay consumers sales and use taxes on his purchases of tangible
				personal property for use or consumption in that activity, a person providing
				taxable services or selling tangible personal property may purchase tangible
				personal property for resale and give the supplier an exemption certificate in
				lieu of paying the tax thereon. Special rules exist for persons who engage in
				the following activities:
107.1.1. Contractors
				who are subject to the transition rules. See Section 108 of these regulations
				for a detailed explanation of these rules.
107.1.2. Contracting for governmental
				entities. See Section 109 of these regulations for a detailed explanation of
				these rules.
107.1.3. Installation
				of certain tangible personal property where the installation thereof is
				incidental to the sale thereof by a retail dealer. See Section 114 of these
				regulations for a detailed explanation of these rules.
107.1.4. Contractors who produce or
				manufacture tangible personal property which is used or consumed in their
				contracting activity. See Section 112 of these regulations for a detailed
				explanation of these rules.
107.1.5. Installation of tangible personal
				property. See Section 111 of these regulations for a detailed explanation of
				these rules.
107.1.6. Maintaining,
				servicing or repairing tangible personal property. See Section 115 of these
				regulations for a detailed explanation of these rules.
107.1.7. Maintaining, servicing, repairing,
				altering, improving, or decorating of buildings, structures or real property.
				See Section 116 of these regulations for a detailed explanation of these
				rules.
107.1.8. Contracting by
				nonresident persons. See Section 110 of these regulations for a detailed
				explanation of these rules.
107.1.9. Contractors who engage in producing
				natural resources or in reclamation, waste disposal or environmental activities
				associated with the production of natural resources. See Section 123 of these
				regulations for a detailed explanation of these rules.