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 110-15-45 - Rentals, Licenses and Leases of Tangible Personal Property; Generally

Universal Citation: 110 WV Code of State Rules 110-15-45

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

45.1. The definition of "sale" includes the transfer of possession of tangible personal property for a consideration and includes a lease, or rental or license to use. Thus, renting, leasing, or licensing to use tangible personal property is an activity subject to consumers sales and service tax and use tax. The tax applies, if the rental occurs in West Virginia, irrespective of where the lessee or licensee makes use of the property, unless the rental qualifies under Section 45.5 of this regulation. For example, the rental of an automobile from a lessor within this State is taxable in its entirety even though the lessee may use the vehicle for travel outside this State and regardless of where payment is made.

45.2. When there is an agreement of lease or rental of tangible personal property which grants to the lessee or licensee an option to purchase the property, the tax shall be computed upon each payment. If, at any time during the agreement, the lessee or licensee exercises the option on either a cash or charge basis, the tax must be collected on the remaining portion of the sale price at the time the option is exercised or within thirty (30) days after the option is exercised.

45.2.1. An exception to the preceding is a lease-purchase agreement of an automobile. When the lessee exercises his option to purchase the vehicle, the remaining balance or sale price is not subject to the consumers sales and service tax but the lessee will be subject to the motor vehicle privilege tax pursuant to W. Va. Code '17A-3-4.

45.3. The consumers sales and service tax and use tax are not applicable to the rental of apartments, houses, offices or other real estate when such rental exceeds thirty (30) consecutive days. See Section 69 of these regulations for information relative to the rental of parking spaces.

45.4. The renting, leasing or licensing to use of tangible personal property is considered to be a sale of tangible personal property. Thus, purchases for use in the business are taxable, except for purchases for resale, for which an exemption certificate may be issued.

45.5. Leases of motor vehicles for a period of thirty (30) or more consecutive days are exempt from tax.

45.6. For in-depth analysis of leases of tangible personal property, see Section 129 of these regulations.

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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