Jul.24, 2026
New West Virginia Sales Tax Exemption for Contractors Working in Public Schools
Construction companies working within public schools in West Virginia have a new tax consideration, which became effective on July 1, 2026.The West Virginia Legislature passed an amendment to WV Code §11-15-8d during the 2026 legislative session. The amendment allows a sales tax exemption on the purchase of qualifying services and building materials that will be consumed or installed into a public-school facility. The legislation is designed to reduce construction costs associated with public education facilities by exempting qualifying purchases from state sales tax.
What Materials are Eligible?
The exemption applies to building materials that become secured to or installed into a public-school facility as part of construction, renovation, repair, or improvement projects.
The exemption does not apply to:
- Gasoline
- Special Fuels
- Tools
- Construction equipment
- Any property or device that does not become permanent in the facility.
A property or device is generally considered permanent in the facitlity when its removal would substantially damage or deface the property.
What Qualifies as a Public-School Facility?
Under the statute, a “school-facility” is defined as real property used primarily for instructional, administrative, or extracurricular functions by a public elementary, secondary, or vocational school.
Under WV Code §11-15-9(a)(6)(B), the exemption applies to “an elementary school 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 carried on.
What are Important Considerations for Contractors?
Construction companies working in public schools should pay close attention to the July 1, 2026, effective date. As the law is currently written, any purchases made on or before June 30, 2026, remain subject to West Virginia sales tax. Contractors with projects spanning the effective date should work closely with suppliers to ensure purchases made on or after July 1, 2026, are properly treated as exempt when invoiced.
The change may also impact the bidding process. Contractors preparing for current or future bids for public-school projects should factor the sales tax exemption into material cost calculations to ensure accurate pricing and maintain competitiveness.
Documentation is Critical
To support the exemption, contractors should obtain and maintain proper documentation from the contracting entity. The documentation should verify that the facility meets the statutory definition of an eligible public-school facility. Additionally, proper recordkeeping will be essential in demonstrating compliance and supporting tax-exempt treatment of qualifying purchases.
The exemption represents a valuable opportunity to reduce the tax burden on eligible construction projects. While the savings could be substantial, contractors must carefully manage the transition, identify qualifying purchases, and secure appropriate documentation to ensure compliance.
Suttle & Stalnaker, PLLC is ready to help. If you would like more information on how this applies to you, contact Bart Scott, CPA, MBA, CGMA at 304.343.4126 or bscott@suttlecpas.com.