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On July 1, 2004, several computer related items will become exempt in the state of West Virginia. The most important of these exemptions include the sales of computer hardware and software directly incorporated into manufactured products, sales of electronic data processing services, sales of computer hardware and software directly used in communication, sales of educational software, sales of internet advertising, and high technology business services. "High technology business services" includes activities such as computer hardware design and development; computer software design, development, customization, and upgrade; website design and development; and electronic data processing. (West Virginia H.B. 4501, effective July 1, 2004)


A sales tax holiday has been enacted starting August 6, 2004 and ending August 8, 2004. Purchases of clothing and footwear under $100, computers under $750, computer accessories under $100, and school supplies will all be exempt during this period. The tax holiday will not include purchases of athletic clothing or footwear, furniture, or accessories, including jewelry and handbags. Additionally, the holiday exemption will not apply to the rental of eligible tax holiday items. (West Virginia State Tax Department, Administrative Notice 2004-19, Decided April 30, 2004)


A two-month tax amnesty program has been enacted in West Virginia. However, the exact dates are still being determined. The amnesty program will allow taxpayers with outstanding tax liabilities to take care of their obligations without penalties, additional tax, and only 50% of interest due for late filing or payment. An amnesty application, provided by the Commissioner, must be filled out and submitted during the amnesty period. Payment of outstanding tax must be paid in full by the last day of the month in which the amnesty period ends. If payment is not made in full, interest will continue to accrue. (S.B. 148, Laws 2004, effective June 11, 2004)


Website banner advertising was not exempt from tax under West Virginia Code Section 11-15-9(a)(12) which exempts outdoor advertising, the sale of radio and television time, and the preprinting of advertising circulars but does not include advertising on the Web. (West Virginia Office of Tax Appeals Decision, No. 02-308 C, August 26, 2003)


An emergency rule was issued in West Virginia to clarify that durable medical goods, mobility enhancing equipment and prosthetic devices sold by prescription to or for a patient are exempt from sales and use tax after December 31, 2003. This is in response to the deletion of the definition of "drug" in W.Va. Code Sec. 11-15-2(f) without the amending W. Va. Code Sec. 11-15-9(a) (11), which caused the afore mentioned supplies to appear to be taxable. (State Tax Department, Emergency Legislative Rule, Code Sec. 110-15G-1, effective as noted above)



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