Bill > HB2161

This bill modifies the consumer sales and use tax exemption for purchases related to new or expanded warehouse and distribution facilities in West Virginia by significantly reducing the job creation threshold from 300 to 50 full-time employees. The bill defines several key terms, including "full-time employment" (at least 140 hours per month at minimum wage), "primary material handling equipment" (machinery used to move property), and "qualified, new or expanded warehouse or distribution facility" (a new or expanded facility with at least $50 million in direct investment). The tax exemption applies to purchases of computers, computer software, material handling equipment, racking systems, building materials, and other tangible personal property made during the facility's expansion period, which is defined as the time beginning one year before construction starts and ending one year after substantial completion (not to exceed five years). To qualify for the exemption, businesses must submit an application to the State Tax Commissioner before construction begins, demonstrating they will meet the employment and investment requirements. The bill includes provisions for disqualification if the facility fails to maintain employment levels, engages in over-the-counter sales exceeding 5% of revenues, or begins manufacturing activities within 10 years of the expansion period. The amendments will take effect for purchases made in taxable years beginning on or after January 1, 2026.