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The method used for calculating the six percent sales and use tax has changed from the bracket system to a rounding system, effective January 1, 2004. Taxpayers may compute the tax due on a transaction on a per-item basis or on an invoice basis, provided the same method is used consistently during the reporting period. Taxpayers who have a sales tax liability of $100,000 or more per month are now required to remit the tax via Electronic Funds Transfer (EFT). Additionally, effective January 1, 2004, all monthly, quarterly and annual filers are instructed to remit their sales and use tax returns by the 20th day (previously the 15th) of the month following the close of the reporting period. (Important Notice: West Virginia Sales and Use Tax Changes for the Year 2004, West Virginia State Tax Department, January 2004)


In West Virginia, marketing incentive payment plans for tobacco products were subject to use tax because of the taxable services retailers were required to provide. Activities required of retailers included providing storage stocking and rotating products, accounting, executing promotions, assembling, placing, displaying, and advertising products, along with providing the use of store space. These services were not exempt for resale because under contract they were not the same services resold to the customers. (West Virginia Office of Appeals, Decision No. 01-624U, April 24, 2003)


In West Virginia, a three-day exemption from sales tax on purchases of clothes and school supplies, as well as computers under $750 and computer accessories costing less than $100. However, some conditions and exceptions may apply to make items subject to tax. The West Virginia State Tax Department has provided definitions and examples of specific sales situations. The holiday begins on August 1, 2003 and runs through August 3, 2003. (S.B. 107, Laws 2003, effective June 5, 2003)


Because neither the items of the customer's inventory nor the company's employees' observations qualified as "data", the company did not qualify for the electronic data processing exemption. However, once the data has been created, the subsequent electronic processing of such inventory data by the inventory service company would be eligible for exemption. (RGIS Inventory Specialists, West Virginia Supreme Court of Appeals, No. 28212, February 23, 2001)



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