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 110-15-49 - Printers

49.1. Persons engaged in the business of printing, who provide materials and labor to produce printed products are considered to be manufacturers and must collect and remit consumers sales and service tax and use tax on sales of such products, or in lieu of the tax, receive a valid exemption certificate or direct pay number. Persons who provide printing services on materials owned by their customers are considered to be rendering a taxable service and must also collect and remit the tax, or in lieu of the tax, receive a valid exemption certificate or direct pay permit number.

49.2. Persons engaged in the business of printing who provide materials and labor to produce printed products are considered to be manufacturers and must pay consumers sales and service tax on their purchases, except those purchases of goods and services directly used in the manufacturing activity. Other items which are not integral or essential to the manufacturing activity, but which are instead considered to be incidental, convenient or remote to the manufacturing activity, are taxable. Guidelines for determining what is considered to be "directly used" are given in Sections 2 and 123 of these regulations.

49.3. Persons engaged in a manufacturing activity must either pay the tax and request a refund or credit or use a direct pay permit to obtain exemption on goods and services directly used in their manufacturing 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.

49.4. 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 purchaser 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.

49.5. 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.

49.6. Persons who provide printing services on materials owned by their customers are considered to be engaged in a service activity. Purchases of tangible personal property and taxable services for use or consumption in rendering a taxable service are taxable.

49.7. Printers who engage in manufacturing and who also render taxable services 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 manufacturing. These items may be totally taxable or partially taxable depending on their use. 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. If an item is used in the activity of rendering a taxable service and is also directly used in the manufacturing activity, such item would be exempt to the extent it is directly used in the manufacturing activity. Items which are used in the activity of rendering a taxable service and indirectly used in the manufacturing activity, such as office furniture or supplies, would be taxable in full. To determine how much tax should be remitted when an item has a dual use, one of which is direct use in the manufacturing activity, the purchase price must be apportioned between taxable and nontaxable activities.