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 110-15-31 - Banking Business

Universal Citation: 110 WV Code of State Rules 110-15-31

Current through Register Vol. XLI, No. 38, September 20, 2024

31.1. Generally, banks, state and national, are not exempt from the imposition of the consumers sales and service tax or use tax on their purchases, inasmuch as banks are the ultimate consumers of such purchases. Banks are only exempt on purchases of property and services that are resold, subject to tax, to consumers.

31.1.1. For purposes of this regulation, "banking business" includes any bank, banking association, trust company, industrial loan company, small loan company or licensee, building and loan association, savings and loan association, finance company and any other similar business organization at least ninety percent (90%) of the assets of which consist of intangible personal property and at least ninety percent (90%) of the gross receipts of which consist of dividends, interest and other charges derived from the use of money or credit.

31.2. Any purchases by banks of tangible personal property or services which are used in providing a taxable service are subject to the consumers sales and service tax or use tax; however, purchases of tangible personal property for resale as tangible personal property are exempt.

31.3. Generally, the services rendered to consumers by banks, state and national, are exempt from the consumers sales and service tax because such services constitute professional services, consideration for the extension of credit, charges related to the transfer of intangible property, or electronic data processing services for others. Purchases by banks of tangible personal property or taxable services for use or consumption in providing these exempt services are subject to the consumers sales and service tax and use tax.

31.4. Nevertheless, the sale of some bank services and bank related tangible personal property are taxable. The following constitutes a complete list of items or services on which banks must charge and collect consumers sales and service tax unless the purchaser or transaction is exempt:

31.4.1. Charges made for real estate management unless the service is provided by a licensed real estate broker,

31.4.2. Any payment received for rental of safety deposit boxes regardless of the fact that a rental or lease agreement may have been executed prior to July 1, 1987,

31.4.3. Fees received for collection of notes and accounts of others,

31.4.4. Sales to consumers of promotional items, such as glassware, silverware, appliances, etc.,

31.4.5. Sales to consumers of checks, checkbooks and money bags, and similar items, and

31.4.6. Charges for research and copying.

Disclaimer: These regulations may not be the most recent version. West Virginia may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.
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