On March 10, 2026, the West Virginia Legislature passed an amendment to WV Code §11-15-8d, which, among other changes, enables contractors to claim an exemption from sales tax for services and materials used, consumed or installed into a qualified public-school facility. The exemption goes into effect on July 1, 2026.
Under the new statute, specifically §11-15-8d(e), for construction beginning on or after July 1, 2026, persons performing “contracting” may exempt from sales tax building materials used in the “construction, alteration, repair or improvement” of a public-school facility, if the “purchaser of the contracting services,” i.e. the school, is entitled to the exemption provided by WV Code §11-15-9(a)(6)(B). Building materials, within this exemption, are limited to tangible personal property that becomes affixed to or installed into the public-school facility. The exemption does not apply to: gasoline and special fuel; tools; construction equipment; or any property or device that does not become a “permanent part” of the realty.
Further, the statue defines a “school facility” as real property used primarily for instructional, administrative or extracurricular functions by a public elementary, secondary or vocational school. Additionally, the exemption provided by WV Code §11-15-9(a)(6)(B) is specifically applicable to “an elementary or secondary school” that maintains a regular faculty and curriculum, and has a regularly enrolled body of pupils or students in attendance at the place in this state where its educational activities are regularly carried on.
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Construction companies performing, or planning to perform, work on a public school building in West Virginia should consider the exemption effective date of July 1, 2026. As the statutory change is written, any purchases of qualifying building material made on or before June 30, 2026, will be subject to the West Virginia sales tax. Thus, for any projects that will span the effective date of the legislation, the purchasing contractor will need to ensure that the change is implemented when invoiced by the supplier of the materials. Additionally, any current, or future, contract bids should reflect the tax exemption when calculating the cost of the building materials into the bidding process.
The construction company should be sure to obtain proper exemption documentation from the entity that they contract with to perform the work in verification that the building meets the definition of an elementary or secondary school as defined by law. If anyone from a construction company has further questions regarding the exemption, the Schneider Downs tax advisory group is able to assist.
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