West Virginia Utility Sales Tax Exemption
West Virginia provides a sales and use tax exemption on purchases of electricity, natural gas, and other fuels used or consumed in the direct production of tangible personal property for sale. The exemption applies only when the utility is essential to the manufacturing process.
Predominant Use Study
To support the exemption, businesses must:
- Maintain a utility usage study to separate exempt (production-related) utility usage from non-exempt usage.
- Identify equipment, machinery, and processes that consume utilities directly in manufacturing.
- Keep accurate records of annual utility consumption and allocations for exempt versus non-exempt activities.
Exemption Requirement
Submit Form WV/CST-280, West Virginia Sales and Use Tax Exemption Certificate to utility providers. To request a refund for previously paid utility sales taxes, file a claim with the West Virginia State Tax Department. Refund claims are generally permitted for up to three years from the date of payment. All refund requests must be supported by detailed utility records and exemption documentation.