Motor Vehicle Dealers

65.1. Sales of motor vehicles which are titled by the Department of Motor Vehicles and which are subject to the tax imposed by W. Va. Code §17A-3-4 or a similar tax imposed by another state are exempt from consumers sales and service tax. The term "motor vehicle" includes recreational vehicle.

65.1.1. Any motor vehicle which is purchased and delivered in West Virginia and immediately removed from this State is exempt from the consumers sales and service tax and use tax if the vehicle is then titled and registered in another state and subjected to a tax on the value of the vehicle by such other state.

65.2. Accessories which are purchased from the dealer after the title and possession of the motor vehicle have been transferred to the purchaser are subject to the consumers sales and service tax and use tax.

65.2.1. As a practical application of this rule, the dealer's sales invoice will be accepted as the basis for determining the amount of tax.

65.2.2. Sales of parts and services to customers are subject to consumers sales and service tax and use tax. Any trade-in value of parts is credited against the price paid.

65.3. When a licensed motor vehicle dealer repairs vehicles for individuals, he is engaged in the business of selling tangible personal property and rendering a taxable service.

65.4. A person engaged in the business of selling a taxable service and taxable tangible personal property is taxable on all of his purchases except purchases for resale.

65.5. When a licensed dealer in motor vehicles make purchases of parts and materials to repair or recondition vehicles held in his inventory for sale, the purchases are considered to be purchases for resale and exempt from tax. For example, a used motor vehicle dealer purchases tires and a battery to repair a car that he will later sell. These items are considered to be purchases for resale and are exempt from tax.

65.6. Repairs of motor vehicles performed under warranties are taxable in accordance with Section 63 of these regulations.

65.7. Towing charges, if regulated by the Public Service Commission, are exempt from consumers sales and service tax.