Do contractors charge sales tax in West Virginia?

It depends on whether the job is a capital improvement. Capital improvements carry no sales tax; other repair and maintenance can be taxed.

West Virginia's consumers sales and service tax applies to selling goods and to furnishing all services, except professional and personal services. It does not apply to contracting services. A contractor's own purchases of goods and services used in contracting have been taxable since March 1, 1989.

Contracting means furnishing work, or work and materials, for another. Repair counts as contracting only when the repair is itself a capital improvement. A capital improvement is affixed to and becomes part of a building, structure or real property.

A capital improvement must be relatively permanent, meaning it lasts at least a year without regularly scheduled service at intervals of less than a year (W. Va. Code § 11-15-2(b)(3)(C)(vi)). Hook-up, connection or installation that is incidental to the seller's retail sale of goods from its own inventory, such as wall-to-wall carpet or household appliances, is not contracting. Repair or maintenance that is not a capital improvement is not contracting, and the tax applies to services generally.

Municipalities may add a 1% municipal sales and use tax to the 6% state rate.

It turns on: whether the work is a capital improvement; whether the work is relatively permanent or needs recurring service; where the job is, for the municipal tax.

“The term "repair" means, and is limited to, repairs which are capital improvements”W. Va. Code § 11-15-2(b)(3)(C)(iii)