W. Va. Code R. § 110-28-4

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

Section 110-28-4 - Administration and Collection of Tax

4.1. A municipality that imposes a municipal sales and use tax may not administer or collect the tax but shall use the services of the Tax Commissioner to administer, enforce and collect the municipal tax imposed in the same manner as the state consumers sales and service tax and use tax. All legislative, interpretive and procedural rules promulgated by the Tax Commissioner to administer and enforce the provisions of articles fifteen, fifteen-a and fifteen-b, chapter eleven of the West Virginia Code and the provisions of W. Va. CSR § 110-15-1, et seq., apply to the implementation, administration, collection and enforcement of any municipal sales and use tax imposed and all provisions of those enactments shall be read in extenso herein.

4.2. Any municipal sales and use tax shall be imposed in addition to the consumers sales and service tax and use tax imposed pursuant to articles fifteen and fifteen-a, chapter eleven of the West Virginia Code on sales made and services rendered and on the use of tangible personal property, custom software or taxable services within the boundaries of the municipality and, except as exempted or excepted, all sales made and services rendered and on the use of tangible personal property, custom software or taxable services within the boundaries of the municipality shall remain subject to the tax levied by those articles.

4.3. A municipal sales and use tax is imposed in addition to any tax lawfully imposed, including but not limited to those imposed pursuant to W. Va. Code § 7-18-1 (hotel occupancy taxes), W. Va. Code § 7-22-12 (county economic opportunity district tax), W. Va. Code § 8-13-5a (public utility tax), W. Va. Code § 8-13-6 (amusement tax), W. Va. Code § 8-13-7 (tax on purchases of intoxicating liquor) and W. Va. Code § 8-38-12 (municipal economic opportunity district tax).

4.4. Collection by Vendor. -- Each vendor shall collect from the purchaser municipal sales and use tax imposed upon each sale of tangible personal property and taxable service made or furnished in the municipality at the same time and in the same manner as each vendor collects from the purchaser the state consumers sales and service tax and use tax. Municipal sales and use tax shall be added to and constitute a part of the sales price.

4.5. Collection by Retailer. -- Every retailer engaging in business in this state and making sales of tangible personal property or taxable services for delivery into a municipality that has imposed a municipal sales and use tax or with knowledge, directly or indirectly, that the property or services are intended for use in such municipality, shall, at the time of making such sales, whether within or without the state, collect the municipal use tax from the purchaser at the same time and in the same manner that the retailer collects the state use tax from the purchaser. The tax shall be added to and constitute a part of the sales price and the retailer must give to the purchaser a sales receipt with the tax separately stated on the receipt.

4.6. Exceptions to Collection Requirements. -- Notwithstanding sections 4.4 and 4.5 of this section heading, a municipal sales and use tax need not be collected by the vendor or retailer with respect to a transaction if the state consumers sales and service and use tax need not be collected under the provisions of the state consumers sales and service and use tax laws, as if the provisions of those laws were set forth herein in extenso.

4.7. Payment of Use Tax. -- When the purchaser of tangible personal property, custom software or a taxable service is required to pay state use tax measured by the purchase price and the use is in a municipality that imposes a municipal sales and use tax, municipal use tax must be paid on the purchase price to the Tax Commissioner at the same time that the state use tax is paid.

4.7.1. Exception. -- Situations will exist where a vendor located in West Virginia collects state sales tax at the time the sale is made but does not collect municipal sales tax because the sale took place at the vendor's store, which is not located in a municipality, or is not located in a municipality that imposes a sales tax. When the purchaser then uses or consumes the products in a municipality that does impose a sales and use tax, the user owes municipal sales and use tax based on the purchase price of the products used or consumed within the municipality.

Example 1. -- A contractor purchases building materials for $500 from a seller located outside a municipality. The contractor pays state sales tax at the time of purchase. The contractor then uses the building materials in a construction project located within a municipality that imposes a municipal sales and use tax. The contractor must remit the municipal sales and use tax to the Tax Commissioner based on the $500 purchase price and the tax rate imposed by the municipality where the materials are used.

Example 2. -- A business located in a municipality that imposes a municipal sales and use tax buys office supplies for $500 from a business located outside the municipality. The business pays state sales tax at the time of purchase. The business then uses the office supplies at its place of business in a municipality that imposes a sales and use tax. The business must remit municipal sales and use tax to the Tax Commissioner based on the $500 purchase price and the tax rate imposed by the municipality where the materials are used.

4.8. The Tax Commissioner may prescribe any processes, procedures, forms, schedules and other administrative requirements as determined to be useful or convenient for the efficient administration of the municipal consumers sales and service tax and use taxes addressed under this rule.

4.9. The Tax Commissioner may require the following documents and information to administer the municipal sales and use tax:

4.9.1. Certified copies of the ordinance imposing the taxes, or changing the rate in a tax, along with a certified description of the boundaries of the municipality,

4.9.2. The nine-digit zip codes for addresses located within the boundaries of the municipality,

4.9.3. The certified designation of a municipal official to whom all notices and communications are to be sent and from whom all notices and communications are to be sent, and

4.9.4. Certified documentation of other information the Tax Commissioner may need to administer, collect and enforce the taxes administered under this rule.

4.10. The Tax Commissioner may, within his or her discretion, solicit comments or recommendations regarding projections, determinations and data for a period of approximately 30 days, and in response to the comments or recommendations, may reissue the notice, as amended, on or about the July 1 next succeeding the initial publication date.

4.11 The periodic cost recovery fee is an amount equal to one percent (1%) that is retained from municipal consumers sales and service tax and use tax proceeds by the Tax Department in exchange for administration services.

W. Va. Code R. § 110-28-4