Senate Bill No. 631
(By Senator McCabe)
____________
[Introduced February 16, 2007; referred to the Committee on
Finance.]
____________
A BILL to amend and reenact §11-15-8d of the Code of West Virginia,
1931, as amended, relating to the consumers sales and service
tax generally; and providing a refundable exemption for
purchases by a contractor when the purchased materials will be
used or consumed in the construction, alteration, repair or
improvement of a new or existing building or structure to be
used primarily by persons or entities exempt from the
consumers sales and service tax on purchases.
Be it enacted by the Legislature of West Virginia:
That §11-15-8d of the Code of West Virginia, 1931, as amended,
be amended and reenacted to read as follows:
ARTICLE 15. CONSUMERS SALES AND SERVICE TAX.
§11-15-8d. Limitations on right to assert exemptions.
Persons who perform "contracting" as defined in section two of
this article, or persons acting in an agency capacity, may not assert any exemption to which the purchaser of such contracting
services or the principal is entitled. Any statutory exemption to
which a taxpayer may be entitled shall be invalid unless the
tangible personal property or taxable service is actually purchased
by such taxpayer and is directly invoiced to and paid by such
taxpayer:
Provided, That this section shall not apply to purchases
by an employee for his or her employer; purchases by a partner for
his or her partnership; or purchases by a duly authorized officer
of a corporation, or unincorporated organization, for his or her
corporation or unincorporated organization so long as the purchase
is invoiced to and paid by such employer, partnership, corporation
or unincorporated organization.
Transition rule. -- This section shall not apply to purchases
of tangible personal property or taxable services in fulfillment of
a purchasing agent or procurement agent contract executed and
legally binding on the parties thereto prior to the fifteenth day
of September, one thousand nine hundred ninety:
Provided, That
this transition rule shall not apply to any purchases of tangible
personal property or taxable services made under such a contract
after the thirty-first day of August, one thousand nine hundred
ninety-one; and this transition rule shall not apply if the primary
purpose of the purchasing agent or procurement agent contract was
to avoid payment of consumers sales and use taxes:
Provided,
however, That effective the first day of January, two thousand
seven, this section shall not apply to purchases of services, machinery, supplies or materials, except gasoline and special fuel,
to be directly used or consumed in the construction, alteration,
repair or improvement of a new or existing building or structure by
a person performing "contracting", as defined in section two of
this article, if the purchaser of the "contracting" services would
be entitled to claim the refundable exemption under the provisions
of subdivision (2), subsection (b), section nine of this article
had it purchased the services, machinery, supplies or materials.
_______
(NOTE: The purpose of this bill is to provide a refundable
exemption for purchases by a contractor when the purchased
materials will be used or consumed in the construction, alteration,
repair or improvement of a new or existing building or structure to
be used primarily by persons or entities exempt from the sales tax
on purchases.
Strike-throughs indicate language that would be stricken from
the present law, and underscoring indicates new language that would
be added.)
Email
Webmaster | © 2024 West Virginia Legislature **
