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 110-15-48 - Radio and Television Broadcasting Stations
Current through Register Vol. XLI, No. 38, September 20, 2024
48.1. Radio and television broadcasting stations who render advertising services, such as layouts or artwork, which are sold and delivered to customers but not associated with or an integral part of broadcast time at the station providing such services, are for the purpose of such sales engaged in rendering a service subject to the consumers sales and service tax and use tax. However, such transactions which occur in conjunction with the sale of broadcast time at the station rendering such service are exempt. Sales of radio and television broadcasting time are exempt from the consumers sales and service tax and use tax.
48.2. Radio and television broadcasting stations are primarily engaged in a communications business. Purchases for direct use in a communications business are exempt from consumers sales and service tax and use tax. Other items which are not integral or essential to the communications activity, but which are instead considered to be incidental, convenient or remote to the communications activity, are taxable. Guidelines for determining what is considered to be "directly used" are given in Sections 2 and 123 of these regulations.
48.3. Persons engaged in a communications activity must either pay the tax and request a refund or credit or use a direct pay permit to obtain exemption on the purchase of goods and services directly used in their communications activity. An exemption certificate, as well as a direct pay permit, may be used to obtain an exemption on purchases of goods and services for resale.
48.4. If a direct pay permit is presented to the vendor, no tax is charged on the sale of tangible personal property or service rendered to the purchaser. The person using the direct pay permit must keep a record of the purchases made using the direct pay permit and whether the items purchased were used in an exempt or taxable manner.
48.5. Radio and television broadcasting stations who also render taxable services such as layouts or artwork are engaged in multiple business activities. Persons engaged in multiple business activities will pay tax on their purchases for use in their overall business operation on an apportionment basis. Some items may be used in both the activities of rendering a taxable service and communications. These items may be totally taxable or exempt or partially taxable or exempt depending on their use. If an item is used in the activity of rendering a taxable service and is also directly used in the communications activity, such items would be partially exempt. However, items which are used in the activity of rendering a taxable service and indirectly used in the communications activity, such as office furniture or supplies, would be totally taxable. To determine how much tax should be remitted, the purchase price must be apportioned between taxable and nontaxable activities. Any reasonable method of apportionment, such as gross receipts from activities, will be acceptable. Documentation as to the apportionment method used should be retained for audit purposes.
48.6. Pursuant to Section 9c.7 of these regulations, a direct pay permit consumers sales and service tax return and a direct pay use tax return must be filed on a monthly basis by the direct pay permit user, together with the tax due on taxable purchases made using the direct pay permit.
