W. Va. Code R. § 110-15-40

Current through Register Vol. XLI, No. 24, June 14, 2024

Section 110-15-40 - Elementary and Secondary Schools

40.1. All public and private elementary and secondary schools shall collect and pay sales and service and use tax in accordance with this regulation.

40.2. Public Schools.

40.2.1. Purchases by Public Schools.

40.2.1.1. All purchases of tangible personal property and services by public schools are exempt from the consumers sales and service tax and use tax so long as a properly completed exemption certificate is issued to the vendor.

40.2.1.2. For information about purchases of food by public schools, See Section 126 of these regulations.

40.2.2. Sales by Public Schools.

40.2.2.1. Sales of textbooks, workbooks, instructional aids, and standardized examination material which are required to be used in any public elementary or secondary school in this State are exempt from the consumers sales and service tax and use tax. However, sales of other school materials, supplies, books which are not textbooks and textbooks which are not required to be used are taxable.

40.2.2.2. For information about sales of food by public schools, See Section 126 of these regulations.

40.2.2.3. School papers and yearbooks, compiled and edited by students of the school, are taxable when sold to the public. However, such sales to students or employees of the school are exempt. Additionally, the sale of advertisements to be placed in such publications are exempt.

40.2.2.4. Sales of tickets for activities sponsored by elementary and secondary public schools located within this State are exempt.

40.2.2.5. Rentals of locks, lockers, storage space, clothing and other materials and equipment owned by public schools and furnished solely to students of the school are exempt.

40.2.2.6. Class dues and library fines are exempt.

40.2.2.7. Casual and occasional sales as defined in Section 2 of these regulations by a parent-teacher association, or similar organization, are taxable unless the organization has a current registration certificate issued in accordance with W. Va. Code '11-12-1 et seq., is exempt from federal income taxes as an organization qualified under I.R.C. '501(c)(3) or '501(c)(4), is an organization with no paid employees, and the organization's gross income from fund raisers, less reasonable and necessary expenses to raise such gross income (or the tangible personal property or services purchased with such net income), is donated to the public school.

40.3. Private Schools.

40.3.1. Private schools which are recognized by the State of West Virginia as providing a child with an elementary or secondary school education which substitutes for the requirement of compulsory public school attendance under W. Va. Code '18-8-1 et seq. are, to the extent of the instruction provided, engaged in the rendering of a professional service. Those entities providing State approved kindergarten programs are likewise treated as rendering professional education services.

40.3.1.1. As professional services are excepted from the consumers sales and service tax and the use tax, private schools which satisfy the requirements of the immediately preceding Section 40.3.1 are not required to collect the consumers sales and service tax on the tuition payments they charge for the provision of their professional education services.

40.3.1.2. Unless the private school also satisfies the requirements of the succeeding Section 40.3.2.1 or another exemption, it must pay the consumers sales and service tax or use tax on all purchases of tangible personal property or taxable services which are used or consumed in the provision of their professional education service.

40.3.2. Purchases by Private Schools.

40.3.2.1. In order for purchases by a private school to be exempt from the consumers sales and service tax and the use tax, it must be:

40.3.2.1.a. a corporation or organization which has a current Business Registration Certificate issued in accordance with W. Va. Code '11-12-1 et seq.;

40.3.2.1.b. exempt from federal income taxes under the authority of I.R.C. '501(c)(3) or '501(c)(4); and;

40.3.2.1.c. an elementary or secondary school which maintains a regular faculty or curriculum and has a regularly enrolled body of pupils or students in attendance at the place in this State where its educational activities are regularly carried on and otherwise satisfies the requirements of the preceding Section 40.3.1.

40.3.2.2. This exemption applies only to services, equipment, supplies and materials used or consumed in the activities which qualify the private school for exemption from federal income taxes under I.R.C. '501(c)(3) or '501(c)(4). This exemption does not apply to purchases of gasoline or special fuel or to purchases of tangible personal property or services to be used or consumed in the generation of unrelated business income as defined in I.R.C. '513. Following are applications of this exemption and other relevant exemptions.

40.3.2.3. Purchases of textbooks, workbooks, instructional aids and standardized examination material required to be used in any school of this State are per se exempt.

40.3.2.4. Purchases of library books, newspapers and magazines are exempt.

40.3.2.5. Tangible personal property and taxable services which are purchased for resale by the school are exempt.

40.3.2.6. Long-term leases of motor vehicles are exempt.

40.3.2.7. Purchases of office or administrative materials, supplies, equipment or services are exempt if used or consumed in activities which qualify the private school as exempt under I.R.C. '501(c)(3) or '501(c)(4) are exempt.

40.3.2.8. Purchases of educational supplies and equipment are exempt.

40.3.2.9. Purchases of building materials, supplies or equipment, including janitorial materials, supplies, equipment and services are exempt: Provided, That the building materials, supplies and equipment are to be installed in, affixed to or incorporated into the real property used by the private school for its educational activities.

40.3.2.10. Purchases of repair parts or repair services for tangible personal property are exempt if such tangible personal property is used or consumed in the activities which qualify the private school as exempt under I.R.C. '501(c)(3) or '501(c)(4).

40.3.2.11. Purchases of athletic equipment and supplies are exempt.

40.3.2.12. In order to claim the exemption, private schools may issue a properly completed exemption certificate to the vendor.

40.3.3. Sales by Private Schools.

40.3.3.1. Casual and occasional sales of property or services not conducted in a repeated manner or in the ordinary course of repetitive and successive transactions of like character by a private school which is exempt on its purchases under W. Va. Code '11-15-9(f) and to the extent provided in the foregoing Section 40.3.2 are exempt. Other exemptions may also be applicable to sales by private schools. Following are applications of relevant exemptions.

40.3.3.2. Sales of textbooks, workbooks, instructional aids, and standardized examination material required to be used in any private elementary or secondary school in this State are per se exempt. However, sales of other school materials, supplies, books which are not textbooks and textbooks which are not required to be used are taxable.

40.3.3.3. For information about sales of food by private schools, See Section 126 of these regulations.

40.3.3.4. School papers and yearbooks, compiled and edited by students of the school, are taxable when sold to the public. However, such sales to students or employees of the school are exempt. Additionally, the sale of advertisements to be placed in such publications are exempt.

40.3.3.5. Sales of tickets for activities sponsored by elementary and secondary private schools located in this State are exempt.

40.3.3.6. Rentals of locks, lockers, storage space, clothing and other materials and equipment owned by private schools and furnished solely to students of the school are exempt.

40.3.3.7. Class dues and library fines are exempt.

40.3.3.8. Casual and occasional sales as defined in Section 2 of these regulations by a parent-teacher association, or similar organization, are taxable unless the organization has a current registration certificate issued in accordance with W. Va. Code '11-12-1 et seq., is exempt from federal income taxes as an organization qualified under I.R.C. '501(c)(3) or '501(c)(4), and is an organization with no paid employees, and the organization's gross income from fund raisers, less reasonable and necessary expenses to raise such gross income (or the tangible personal property or services purchased with such net income) is donated to the private school.

W. Va. Code R. § 110-15-40