OUR THOUGHTS ON:

West Virginia Adopts New Exemption Regulation

By

West Virginia recently adopted regulations governing a per se exemption from the consumers’ sales and service tax and use tax for contractor purchases relating to contracting services provided to government-owned or public service district water or sewer utilities. The exemption is effective November 15, 2011. This exemption represents an expansion of the various industries for which contractors may claim exemption on qualifying purchases.

The exemption will be applicable to purchases by contractors and subcontractors of machinery, materials, supplies and services for direct use or consumption in the construction, alteration, repair or improvement of a new or existing public utility structure or system when the contractor or subcontractor is providing contracting services to the public utility. The exemption is limited to government-owned water and/or sewer utilities, public service district water and/or sewer utilities, or a combination of these entities. The exemption is not applicable to privately owned water or sewer utilities or contractors providing contracting services to such entities.

Since the exemption is per se, no exemption certificate is required to claim it. A contractor or subcontractor can either use Form WV CST-286 and note the public utility’s tax identification number for each qualifying purchase or pay the applicable sales tax and claim a refund.

© 2011 Schneider Downs. All rights-reserved. All content on this site is property of Schneider Downs unless otherwise noted and should not be used without written permission.

This advice is not intended or written to be used for, and it cannot be used for, the purpose of avoiding any federal tax penalties that may be imposed, or for promoting, marketing or recommending to another person, any tax related matter.

You’ve heard our thoughts… We’d like to hear yours

The Schneider Downs Our Thoughts On blog exists to create a dialogue on issues that are important to organizations and individuals. While we enjoy sharing our ideas and insights, we’re especially interested in what you may have to say. If you have a question or a comment about this article – or any article from the Our Thoughts On blog – we hope you’ll share it with us. After all, a dialogue is an exchange of ideas, and we’d like to hear from you. Email us at contactSD@schneiderdowns.com.

Material discussed is meant for informational purposes only, and it is not to be construed as investment, tax, or legal advice. Please note that individual situations can vary. Therefore, this information should be relied upon when coordinated with individual professional advice.

© 2018 Schneider Downs. All rights-reserved. All content on this site is property of Schneider Downs unless otherwise noted and should not be used without written permission.

comments