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West VirginiaHB 40282026 Regular SessionHouseWALLET

Relating to sales tax on construction materials

Sponsored By: Clay Riley (Republican)

Signed by Governor

§11-13NN-1§11-13NN-2§11-13NN-3§11-13NN-4§11-13NN-15

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Bill Overview

Analyzed Economic Effects

4 provisions identified: 2 benefits, 1 costs, 1 mixed.

Lower sales tax on construction inputs

The law removes sales tax on many construction inputs when the buyer qualifies for the state’s refundable exemptions. It covers services, machinery, supplies, computers, servers, building materials, and other items a contractor installs or uses directly in building work. These rules have applied since July 1, 2007 and July 1, 2009. Gasoline and special fuel are still taxed.

Public school construction purchases tax-free 2026

Beginning July 1, 2026, many purchases for public school projects are tax‑exempt. Services and building materials installed in, or directly used or consumed in, constructing, repairing, or improving a public school facility qualify when the buyer is an entity that qualifies under state law. Building materials must become part of the building; tools and construction equipment do not qualify. A school facility is property used mainly for instruction, administration, or extracurriculars by public K–12 or vocational schools. Gasoline and special fuel are still taxed.

Limits on tax breaks for large gas pipelines

For big gas projects, buyer exemptions generally do not apply. This covers natural gas compressor stations and gas transmission lines 20 inches or larger, starting July 1, 2011. Sales tax applies to services, machinery, supplies, and materials used directly in the work unless the contractor meets the compliance rule in §11-13S-4(e). Gasoline and special fuel are still taxed.

Stricter rules for contractors using buyer exemptions

Contractors and agents cannot use a buyer’s sales‑tax exemption. The buyer must actually buy the item or service, be billed directly, and pay the bill. Allowed exceptions: an employee buying for an employer, a partner for a partnership, or an authorized officer for a corporation or unincorporated group, with the invoice and payment in the entity’s name. A narrow grandfather rule keeps some purchasing‑agent contracts signed before September 15, 1999 under prior treatment. It does not cover purchases made after August 31, 1991 or contracts mainly meant to avoid tax.

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Sponsors & Cosponsors

Sponsor

  • Clay Riley

    Republican • House

Cosponsors

  • Joe Ellington

    Republican • House

  • Bob Fehrenbacher

    Republican • House

  • Scot C. Heckert

    Republican • House

  • John Paul Hott

    Republican • House

  • Joe Statler

    Republican • House

  • Christopher W. Toney

    Republican • House

Roll Call Votes

All Roll Calls

Yes: 444 • No: 0

House vote • 3/10/2026

Effective July 1, 2026 (Roll No. 375)

Yes: 93 • No: 0

House vote • 3/10/2026

House concurred in Senate amendment and passed bill (Roll No. 374)

Yes: 93 • No: 0

Senate vote • 3/9/2026

Passed Senate with amended title (Roll No. 369)

Yes: 34 • No: 0

Senate vote • 3/9/2026

Effective July 1, 2026 (Roll No. 370)

Yes: 34 • No: 0

House vote • 1/28/2026

Effective July 1, 2026 (Roll No. 22)

Yes: 95 • No: 0

House vote • 1/28/2026

Passed House (Roll No. 21)

Yes: 95 • No: 0

Actions Timeline

  1. Approved by Governor 4/1/2026

    4/1/2026House

  2. Approved by Governor 4/1/2026 - Senate Journal

    3/14/2026Senate

  3. Approved by Governor 4/1/2026 - House Journal

    3/14/2026House

  4. House Message received

    3/11/2026Senate

  5. To Governor 3/11/2026

    3/11/2026House

  6. To Governor 3/11/2026 - Senate Journal

    3/11/2026Senate

  7. House received Senate message

    3/10/2026House

  8. House concurred in Senate amendment and passed bill (Roll No. 374)

    3/10/2026House

  9. Effective July 1, 2026 (Roll No. 375)

    3/10/2026House

  10. Communicated to Senate

    3/10/2026House

  11. Completed legislative action

    3/10/2026House

  12. On 3rd reading

    3/9/2026Senate

  13. Read 3rd time

    3/9/2026Senate

  14. Passed Senate with amended title (Roll No. 369)

    3/9/2026Senate

  15. Effective July 1, 2026 (Roll No. 370)

    3/9/2026Senate

  16. Senate requests House to concur

    3/9/2026Senate

  17. On 2nd reading

    3/6/2026Senate

  18. Read 2nd time

    3/6/2026Senate

  19. On 1st reading

    3/5/2026Senate

  20. Read 1st time

    3/5/2026Senate

  21. Reported do pass, with title amendment

    3/4/2026Senate

  22. Introduced in Senate

    1/30/2026Senate

  23. To Finance

    1/30/2026Senate

  24. To Finance

    1/30/2026Senate

  25. Read 3rd time

    1/28/2026House

Bill Text

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