Current through Register Vol. XLI, No. 38, September 20, 2024
4.1. General Rule. -- The consumers sales and
service tax is imposed upon the sale of tangible personal property or selected
services. All sales are presumed to be taxable unless the sale is either
excepted or exempt from the tax.
4.2 Baby-sitting Exemption. -- The sale of
baby-sitting services by an individual who performs such services for profit
are exempt from consumers sales tax when the individual providing the service
reasonably estimates that his or her gross receipts from providing baby-sitting
services will not exceed $5,000.00 during the individual's taxable year for
federal income tax purposes.
4.2.1. If an
individual reasonably estimates that his or her gross receipts from providing
baby-sitting services will exceed $5,000.00 for the taxable year, then
consumers sales tax must be collected on all charges for baby-sitting
services.
4.2.2. If an individual
reasonably estimates that his or her gross receipts from providing baby-sitting
services during the taxable year will not exceed $5,000.00 but, due to a
material and unforseen change in circumstances, actual gross receipts exceed
$5,000.00, then consumers sales tax must be collected on gross receipts earned
in excess of $5,000.00, or on gross receipts earned after the individual should
have known that his or her gross receipts from providing baby-sitting services
would exceed $5,000.00, whichever event occurs first.
4.2.3. An individual providing baby-sitting
services for profit is engaging in "business" in this State as that term is
defined in the consumers sales tax law, W. Va. Code '11-15-2, and in the
business registration tax law, W. Va. Code '11-12-2. Such person
must obtain a business registration certificate from the Tax Commissioner, as
provided in W. Va. Code '11-12-3,
if such person's gross receipts from all business activity conducted in this
State exceed $4,000.00 for the taxable year. Application is made by filing Form
WV 8.01 "Application For Business Registration" with the Tax Commissioner.
NOTE: An individual rendering baby-sitting services for
profit is not required to obtain a business registration certificate unless
such individual's gross receipts from all business activity will exceed
$4,000.00 for the taxable year. Gross receipts is calculated by excluding wages
and other employee compensation earned by the individual as an employee.
4.2.4. This exemption applies only
to sales of baby-sitting services. It does not apply to sales of tangible
personal property or other services by the baby-sitter.
4.2.5. Method of Claiming the Baby-Sitting
Exemption. -- A baby-sitter is not required to obtain an exemption certificate
or any other proof of exemption from the person for whom the service is
provided.
4.2.6. Baby-Sitter
Required to Keep Accurate Records. -- A baby-sitter who earns more than
$4,000.00 during his or her taxable year from business activity (including
baby-sitting for profit) must maintain adequate books and records to support
his or her claim of exemption under W. Va. Code '11-15-9(pp)
and these regulations.
4.3. Effective Date of Exemption. --
Exemption '11-15-9(pp) takes effect June 5, 1992, and applies to charges for
baby-sitting services rendered on or after that date.
