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 110-15-115 - Maintaining, Servicing, or Repairing Tangible Personal Property

Current through Register Vol. XLI, No. 28, July 12, 2024
115.1. General
				rule. - Maintaining, servicing and repairing are terms used to cover all
				activities that relate to keeping tangible personal property in a condition of
				fitness, efficiency, readiness, or safety or restoring it to such condition.
				The activity of maintaining, servicing, or repairing of tangible personal
				property can either be a taxable service or contracting. The activity of
				maintaining, servicing or repairing of tangible personal property is generally
				considered to be a taxable service, whether or not any tangible personal
				property is transferred in conjunction with the service. However, the
				maintaining, servicing or repairing of tangible personal property will be
				considered to be contracting if it involves either a capital improvement or is
				performed on or connected with new construction, reconstruction, alteration,
				expansion, or remodeling which itself results in a capital improvement to a
				building, structure or real property. Guidelines for determining whether these
				situations exist are given below.
115.1.1.
				Capital Improvement. - The maintenance, service or repair of tangible personal
				property is considered to be contracting if both of the following two
				conditions are met:
115.1.1.1. Tangible
				Personal Property was Capital Improvement. - The maintenance, service or repair
				is performed on tangible personal property which constituted a capital
				improvement to a building, structure, or real property when installed, (See
				Section 111 of these regulations for detailed information regarding when
				installation of tangible personal property constitutes a capital improvement to
				a building, structure or real property) and;
115.1.1.2. Maintenance, Service or Repair
				Constitutes Capital Improvement. - The maintenance, service or repair itself
				constitutes a capital improvement to the building, structure, or real property
				to or in which the tangible personal property is affixed or
				incorporated.
115.1.1.3. Factors
				for Determination of Capital Improvement. - In determining whether maintaining,
				servicing or repairing tangible personal property results in a capital
				improvement to a building or other structure or to real property to or in which
				the tangible personal property is affixed or incorporated, the following
				factors shall be considered. If either of the criteria is met, the maintenance,
				service or repair will be considered to be a capital improvement and will be
				considered to be contracting.
115.1.1.3.a. The
				maintenance, service, or repair results in a substantial increase in the
				capital value of the building or other structure or of the real property to or
				in which the tangible personal property is affixed or incorporated;
115.1.1.3.b. The maintenance, service or
				repair results in a appreciable increase in the original useful life of the
				building or other structure or of the real property to or in which the tangible
				personal property is affixed or incorporated.