Schedule Ut (Form It-140) - West Virginia Purchaser'S Use Tax Schedule

INSTRUCTIONS:

You owe use tax on the total purchase price of taxable tangible personal

USE TAx – STATE

property or taxable services (hereinafter called property) that you used,

stored, or consumed in West Virginia upon which you have not previously

1. Purchase price

$10,000.00

paid West Virginia sales or use tax.

2. 6.0% West Virginia State use tax

Examples of reasons you may owe use tax:

($10,000 x .06)

600.00

You purchased property without paying sales tax from a seller

3. Less 4.0% sales/use tax paid to State B

outside of West Virginia. You would have paid sales tax if you

($10,000 x .04)

(400.00)

purchased the property from a West Virginia seller.

4. Net use tax due to West Virginia

200.00

You purchased property without paying sales tax for resale (to sell

to others) or for a nontaxable use. You then used the property in

5. Measure of tax ($200 ÷ .06 tax rate)

$ 3,333.34

a taxable manner.

You should include the $3,333.34 in Part I, line 2 of the

You purchased property without paying sales tax and later gave

West Virginia Purchaser’s Use Tax Schedule.

the property away free to your customers.

I. S

art

tate

alCUlatIon

(includes purchases or lease of

USE TAx – MUNICIPAL

tangible personal property or taxable service made using direct pay permit)

Line 1 – enter total purchases of food and multiply by the tax rate.

1. Purchase price

$10,000.00

Line 2 – enter all other purchases and multiply by the tax rate.

2. 1.0% Municipality A sales/use tax ($10,000

II. M

x .01)

100.00

art

UnICIPal

alCUlatIon

3. Less .5% sales/use tax paid to Municipality

You owe municipal use tax on the total purchase price of taxable tangible

B ($10,000 x .005)

(50.00)

personal property or taxable services that you used, stored, or consumed in

a municipality that has imposed sales and use tax upon which you have not

4. Net use tax due to municipality A

50.00

previously paid sales or use tax.

5. Measure of tax ($50 ÷ .01 tax rate)

$ 5,000.00

For municipal tax paid in another municipality. West Virginia sales and use

tax law provides a credit for sales or use taxes that are properly due and paid

You should include the $5,000 in Part II, line 4c-7c under

to another state or municipality on property or services purchased outside of

appropriate municipality.

the State or municipality in which you are located and subsequently stored,

used or consumed inside the State or municipality. The credit is allowed

Line 4a – 7a – Enter the municipal code from the chart at the bottom of the

against the total of West Virginia state and municipal use taxes imposed on

schedule, page 13.

the same property or services purchased in the other state or municipality.

Note: When the combined state and municipal taxes paid to the other

Line 4b – 7b – Enter the name of the municipality

state/municipality equals or exceeds the combined West Virginia state and

municipal use tax, no entry is required on the, West Virginia Purchaser’s

Line 4c – 7c – Enter total purchases subject to the use tax.

Use Tax Schedule (Schedule UT) to report the purchase or the credit for tax

paid to the other state/municipality on the same purchase. Example: You

Line 4d – 7d – Enter the tax rate from the chart at the bottom of the

purchase an item subject to tax in Ohio and pay 7% sales tax (6% state

schedule, page 13.

tax and 1% local tax). You live in an area in West Virginia that imposes

a 1% municipal use tax with the State rate 6%, for a total 7%. You would

Line 4e – 7e – Multiply total purchases by the tax rate and enter total.

not report the purchase on the schedule nor on your Personal Income Tax

Line 8 – Add lines 4e through 7e and enter total.

return since the combined rates are the same in Ohio and the city in West

Virginia.

III. t

art

otal

MoUnt

The following example includes a situation a person may encounter with

respect to West Virginia state, and municipal sales and use taxes, if they

Line 9 – Enter total State Use Tax due (from line 3).

purchase items outside West Virginia or from a different municipality and

are required to pay sales or use taxes to the other state and/or municipality.

Line 10 – Enter total Municipal Use Tax due (from line 8).

The example provides information on how to use the amount of sales tax

paid to the other state as a credit against West Virginia state and municipal

Line 11 – Enter total Use Tax Due. Add lines 9 and 10 and enter total here

use taxes imposed and how to compute and report the West Virginia state

and on line 21 of Form IT 140.

and municipal taxes due.

You bring equipment into West Virginia for use in a municipality which

If you calculate an overpayment of your Personal Income Tax on Form IT 140,

imposes municipal sales and use tax. You can determine the West Virginia

simply deduct the amount of Use Tax due from the amount of overpayment

state and municipal use tax as follows:

by following the instructions for Form IT 140. If your overpayment is

reduced for any reason, the Use Tax will be billed separately from your

Personal Income Tax account.

Schedule Ut (Form It-140) - West Virginia Purchaser'S Use Tax Schedule - 2011 Page 2

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