W. Va. Code R. § 110-15-70

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

Section 110-15-70 - Fraternity and Sorority Houses

70.1. Food sold by and rooms rented by student fraternities and sororities that are officially recognized by the college or university at which they are located, to a student enrolled at the college or university are exempt if the food is sold or a room is rented on a "contract basis." Food or meals sold to the general public or on any other basis other than a "contract basis" are subject to consumers sales and service tax. For further information, See Section 9.2.11 of these regulations.

Food is sold on a "contract basis" only when a fixed price is paid for consumption of food products during a specific period of time without regard to the amount of food product actually consumed by the particular individual contracting for the purchase and no money is paid at the time the food product is served or consumed. The term "specific period of time" means a time period of not less than thirty (30) consecutive days.

70.2. Charges made by a fraternity or sorority to its members for room rental are exempt from consumers sales and service tax if the rental is for no less than thirty (30) consecutive days.

70.3. "Bona fide dues" paid by members of a fraternity or sorority solely for the privilege of obtaining and maintaining membership in a fraternity or sorority are not subject to the consumers sales and service tax. "Bona fide dues" within the context of this regulation mean only those amounts periodically paid by members which entitle such persons to membership in a fraternity or sorority. "Bona fide dues" do not include any amounts paid for goods, or specific services rendered to members of a fraternity or a sorority. Amounts paid for goods or specific services rendered to members of a fraternity or a sorority are subject to the consumers sales and service tax, unless they are exempted under other provisions of the law or these regulations. The inclusion in bona fide dues of charges for services, tangible personal property or other benefits provided to members may cause the entire charge to be taxable.

70.4. Purchases of tangible personal property or services that are used or consumed in the business of selling tangible personal property or taxable services are subject to the consumers sales and service tax and use tax except for purchases for resale. Purchases by a fraternity or sorority of food for meals is not considered to be a purchase for resale.

W. Va. Code R. § 110-15-70