W. Va. Code R. § 110-15-63

Current through Register Vol. XLI, No. 44, November 1, 2024

Section 110-15-63 - Warranties

63.1. Warranties offered with the sale of tangible personal property where no separate charge is made for the warranty are not subject to consumers sales and service tax or use tax.

63.2. Where a charge is made for the sale of a warranty, whether it is a manufacturer's warranty, an extended warranty or any other type of warranty or service or maintenance contract except a warranty upon which the premium tax is imposed under W. Va. Code Chapter 33 or the title privilege tax imposed under W. Va. Code Chapter 17A, the sale of the warranty is subject to consumers sales and service tax or use tax as the sale of a taxable service.

63.3. Consumers sales and service tax is not required to be collected by a vendor or retailer from a warrantor for repairs, including parts and labor, performed pursuant to a warranty. A warranty represents a prepayment for future services and when services are performed under the warranty, the warrantor is eligible to claim the resale exemption.

63.4. To the extent that the owner of the property upon which repairs were performed under any type of warranty is required to pay a portion of the repair costs (i.e., a deductible), the amount so charged to such owner is taxable unless said owner is eligible to issue and does in fact issue a properly executed exemption certificate or gives to the vendor his direct pay permit number.

W. Va. Code R. § 110-15-63