W. Va. Code R. § 110-15-10
Current through Register Vol. XLI, No. 24, June 14, 2024
Section 110-15-10 - Material Purchase Certificate10.1. Material Purchase Certificates are issued only by the State Tax Department. 10.1.1. Only entities specifically designated by these regulations may apply to the Tax Commissioner for a Material Purchase Certificate for a specified construction project. As of October 1, 1990, the exemption for materials purchased by contractors for use in governmental contracts was generally repealed and except for those contracts subject to the transition rules in Section 109 of these regulations, the use of the material purchase certificate was repealed. See Section 109 of these regulations for additional information concerning the taxation of materials for use in governmental contracts. Upon approval by the Tax Commissioner, each Material Purchase Certificate shall be issued directly to the governmental entity instead of the contractor, and the governmental entity shall give the contractor the Material Purchase Certificate.10.2. Each contractor or subcontractor may use a Material Purchase Certificate to purchase exempt from tax material which will be annexed to, incorporated in or become part of a qualifying project. Each vendor selling materials to contractors under this exemption shall execute invoices bearing the Material Purchase Certificate number. Each Material Purchase Certificate shall be valid from the date of issuance by the Department. A Material Purchase Certificate may not be used for any project other than the project noted on the certificate.10.3. If an entity qualifies for a material purchase certificate, but fails to secure a Materials Purchase Certificate from the Tax Commissioner, all contractors or subcontractors purchasing materials for use in a construction project for that entity shall pay consumers sales and service and use tax on the total cost of the materials even though the entity for whom the project is being performed could directly purchase the same materials without consumers sales and service tax.10.4. Leases of construction equipment by a contractor and the purchase of fuel, form lumber, and other material used in an exempt construction project, but not incorporated into the project, shall be taxable.10.5. Each contractor or subcontractor must issue a copy of the Material Purchase Certificate or the Material Purchase Certificate number to each supplier. If a Material Purchase Certificate has not been secured by the entity for whom the project is being performed the contractor shall pay consumers sales and service tax on the purchase of materials even though the entity for whom the project is being performed could directly purchase the same items without consumers sales and service and use tax liability.10.6. Material Purchase Certificates shall be prospective in nature. A Material Purchase Certificate shall not be granted after the construction project is completed to secure a deduction, exclusion, credit or refund of consumers sales and service tax previously paid on the purchase of materials used by the contractor in the construction project.10.7. Upon completion of an exempt project with a governmental entity, each contractor shall furnish a sworn statement to the exempt entity on forms supplied by the Tax Commissioner that all purchases made under the certificate were entitled to exemption from consumers sales and service and use taxes.10.8. Any material purchased under a Material Purchase Certificate which has not been incorporated into, annexed to or become part of the exempt project, or which has not been returned to the supplier for credit, shall be subject to tax. Each contractor shall remit consumers sales and service tax on the material directly to the Tax Commissioner.W. Va. Code R. § 110-15-10