COMMITTEE SUBSTITUTE
FOR
H. B. 210
(By Mr. Speaker, Mr. Kiss, and Delegate Trump)
[By Request of the Executive]
(Originating in the Committee on Finance)
[November 12, 2006]
A BILL
to amend and reenact §11-15-8d of the Code of West Virginia,
1931, as amended, relating to providing an exemption from
consumers sales and service tax 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 primarily used for
manufacturing.
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.
(a) 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.
(b) Notwithstanding any provision of subsection (a) of this
section to the contrary, effective the first day of July, two
thousand seven, a person who performs "contracting," as defined in
section two of this article, may assert an exemption to which the
purchaser of such contracting services is entitled if:
(A)
the exemption is asserted as 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;
(B) the building or structure is to be primarily used for
manufacturing, which may include the generation of electric power,
by the purchaser of the contracting services
; and
(C) the exemption is available to the purchaser of the
contracting services for those purposes under subdivision (2),
subsection (b), section nine of this article.
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.