W. Va. Code R. § 110-15A-4

Current through Register Vol. XLI, No. 50, December 13, 2024

Section 110-15A-4 - Applicability of Consumers Sales Tax

4.1. General Rule. -- The consumers sales and service tax is imposed upon the sale of tangible personal property or selected services. All sales are presumed to be taxable unless the sale is either excepted or exempt from the tax.

4.2 Baby-sitting Exemption. -- The sale of baby-sitting services by an individual who performs such services for profit are exempt from consumers sales tax when the individual providing the service reasonably estimates that his or her gross receipts from providing baby-sitting services will not exceed $5,000.00 during the individual's taxable year for federal income tax purposes.

4.2.1. If an individual reasonably estimates that his or her gross receipts from providing baby-sitting services will exceed $5,000.00 for the taxable year, then consumers sales tax must be collected on all charges for baby-sitting services.

4.2.2. If an individual reasonably estimates that his or her gross receipts from providing baby-sitting services during the taxable year will not exceed $5,000.00 but, due to a material and unforseen change in circumstances, actual gross receipts exceed $5,000.00, then consumers sales tax must be collected on gross receipts earned in excess of $5,000.00, or on gross receipts earned after the individual should have known that his or her gross receipts from providing baby-sitting services would exceed $5,000.00, whichever event occurs first.

4.2.3. An individual providing baby-sitting services for profit is engaging in "business" in this State as that term is defined in the consumers sales tax law, W. Va. Code '11-15-2, and in the business registration tax law, W. Va. Code '11-12-2. Such person must obtain a business registration certificate from the Tax Commissioner, as provided in W. Va. Code '11-12-3, if such person's gross receipts from all business activity conducted in this State exceed $4,000.00 for the taxable year. Application is made by filing Form WV 8.01 "Application For Business Registration" with the Tax Commissioner.

NOTE: An individual rendering baby-sitting services for profit is not required to obtain a business registration certificate unless such individual's gross receipts from all business activity will exceed $4,000.00 for the taxable year. Gross receipts is calculated by excluding wages and other employee compensation earned by the individual as an employee.

4.2.4. This exemption applies only to sales of baby-sitting services. It does not apply to sales of tangible personal property or other services by the baby-sitter.

4.2.5. Method of Claiming the Baby-Sitting Exemption. -- A baby-sitter is not required to obtain an exemption certificate or any other proof of exemption from the person for whom the service is provided.

4.2.6. Baby-Sitter Required to Keep Accurate Records. -- A baby-sitter who earns more than $4,000.00 during his or her taxable year from business activity (including baby-sitting for profit) must maintain adequate books and records to support his or her claim of exemption under W. Va. Code '11-15-9(pp) and these regulations.

4.3. Effective Date of Exemption. -- Exemption '11-15-9(pp) takes effect June 5, 1992, and applies to charges for baby-sitting services rendered on or after that date.

W. Va. Code R. § 110-15A-4