West Virginia Code of State Rules
Agency 110 - Tax
Title 110 - LEGISLATIVE RULE STATE TAX DEPARTMENT
Series 110-15B - Nails And Fencing Exemption For Commercial Production Of Agricultural Product
Section 110-15B-4 - Applicability of Consumers Sales Tax
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. Commercial Agricultural Exemption. -- Sales of tangible personal property, or of taxable services, that are used or consumed in connection with the commercial production of an agricultural product the ultimate sale of which is, in this State, subject to consumers sales tax are exempt from consumers sales tax, except as provided in subdivision 4.3, provided the purchaser furnishes the vendor with a properly executed exemption certificate. Beginning June 5, 1992, purchases of nails and fencing for use or consumption in the commercial production of an agricultural product are exempt from tax, whether or not the nails and fencing are used in a permanent improvement to real property.
4.3. Exceptions to Commercial Agricultural Exemption. -- Notwithstanding the exemption specified in subsection 3.2, a person engaged in the commercial production of an agricultural product must pay consumers sales tax on:
4.4. Explanation of the nails and fencing exemption. -- In order for the purchase of nails or fencing incorporated into a permanent improvement to real property to be exempt from consumers sales tax after June 4, 1992, they must be used or consumed in the "commercial production of an agricultural product", as that phrase is defined in 110 C.S.R. 15, '2. The fact that such nails are used or consumed in a permanent improvement to real property will not destroy this exemption provided the building, fence or other structure, or other permanent improvement to real property, in which the nail is used or consumed is itself used in the commercial production of an agricultural product. Additionally, fencing is exempt whether or not the fence constitutes a permanent improvement to real property, so long as the fence is used in the commercial production of an agricultural product.
4.5. Method of Claiming the nails and fencing exemption. -- The nails and fencing exemption from consumers sales tax may be claimed by either presenting a properly executed exemption certificate to the seller of the nails and fencing or by paying the tax to the seller and then applying to the Tax Commissioner for a refund. If an exemption certificate is used but the nails or fencing is used for a taxable purpose or in a taxable manner, then the tax due with respect to such nails or fencing must be remitted directly to the Tax Commissioner.
