W.Va. Municipal League Tackles Tax Issues

The West Virginia Municipal League wrapped up its annual conference in Morgantown Friday with concerns about proposed tax changes coming from the state legislature.

The West Virginia Municipal League wrapped up its annual conference in Morgantown Friday with concerns about proposed tax changes coming from the state legislature.

Outgoing Municipal League President Chris Tatum is also the mayor of Barboursville, West Virginia. Tatum said while the proposed income tax cuts and much talked about property tax relief proposals loom large, it’s the Business and Occupation Taxes (B&O) cities collect that remain their revenue backbone.

“We have trash collection, recycling and the personnel that take care of those programs in addition to general street repair and maintenance. That’s what our B&O tax collection goes for,” Tatum said. “We have sister cities where that’s the only tax structure they have for revenue collection. And removing the B&O tax structure would be devastating to them.”

Tatum said the legislature continues to chip away at what businesses cities are allowed to tax, like the recent phase out of B&O taxes on new car purchases. The legislature passed that in 2022. He said those changes help focus concerns over the state’s home rule board tightening its requirements for municipalities to add local sales and use taxes on top of the state sales tax already in place.

West Virginia has 234 municipalities. Half, or 117, impose a business and occupation tax in some form.

State code says municipalities that impose a business and occupation tax must either repeal their B&O tax or receive permission from the Municipal Home Rule Board to impose a municipal sales and use tax at a rate not to exceed one percent.

Tatum said most West Virginia cities, towns and villages need both taxes to operate day to day and take care of aging infrastructure and broadband issues while doing their best to stay out of their residents pockets.

“Barboursville would have had to go back for rate increases and ask the Public Service Commission,” Tatum said “Although we had to ask for a small rate increase early on, we’re going to be able to stay out of the pockets of our residents far down the road by being able to become part of the whole duel tax program.”

Tatum said it’s vital that municipal leaders engage with state lawmakers as tax relief debate continues.

“Municipal government is the closest form of government to the people,” Tatum said. “That’s not to say that our legislators aren’t engaged with their constituents, but someone can pick up the phone and call me directly, someone can walk into city hall and talk to someone right now. We have the ability to fix problems right now. I think our ability to take those issues straight to our legislators as it relates to municipalities is important.”

Martinsburg Joins Shepherdstown in Sunday Morning Alcohol Sales

Restaurants in Martinsburg are now able to sell alcohol before 1 p.m. on Sundays.

The Martinsburg City Council approved a home rule law Thursday night to allow the sale of alcohol at restaurants, wineries, distilleries and private clubs beginning at 10 a.m. on Sundays.

Martinsburg was one of six municipalities in West Virginia that the Municipal Home Rule Board approved this month to change city law to sell alcohol before 1 p.m. on Sundays.

Lawmakers passed a bill commonly referred to as the ‘brunch bill’ during the 2016 state Legislative session. The bill allows county commissions to put the alcohol time change on the November ballot for a referendum if they choose to do so.

The Berkeley County Commission had already voted to put the referendum on the fall ballot.

Six More W.Va. Cities Approved for 'Brunch Bill' Ordinance

The West Virginia Municipal Home Rule Board has approved six more cities to sell alcohol at restaurants, wineries, distilleries, and private clubs on Sundays before 1 p.m.

Charleston, South Charleston, Bluefield, Martinsburg, Clarksburg, and Lewisburg have all been approved to pass city laws on what’s commonly referred to as the brunch bill.

Shepherdstown was previously the only town or city in the state to have a home rule ordinance allowing the sale of alcohol as early as 10 a.m. on Sundays.

The state Legislature passed a brunch bill this year, but it requires county commissions to put the issue on a referendum. County residents would then be able to vote on the provision in the fall.

Fewer than ten county commissions have passed the county referendum for the November ballot.

Huntington Mayor: Home Rule Key to America's Best Community Finalist Spot

The city of Huntington’s advancement to the finals of the America’s Best Communities competition presents a unique opportunity for a city striving to improve itself.

Huntington was selected by a panel of judges to be one of eight finalists in the national competition for America’s Best Community.

Huntington and Charleston were both semifinalists in the competition. Charleston wasn’t selected as a finalist, but Huntington Mayor Steve Williams said the key for both cities in his mind is the Home Rule Pilot Project. The project, which started in 2007 with four cities, and has expanded to other communities in the state, shifts power from the state to the local level.  

“The home rule pilot project does actually work,” Williams said. “Every community has its own unique needs. It shouldn’t be a cookie cutter, one size fits all, a decision is made in Charleston and now everyone has to put that square peg in a round hole.”

As one of the eight finalists for the America’s Best Community Project, the city received $100,000. Huntington’s proposal, called the Huntington Innovation Project – or HIP, outlines projects and ideas that will jumpstart the local economy. The top three communities that make the largest impact and show the greatest potential for sustaining revitalization will be the grand prize winners. The top community will receive $3 million, second place will earn $2 million and $1 million will go to third place. 

Credit Clark Davis
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West Edge in the West End of Huntington, part of the revitalization project.

Williams said Huntington’s plan is different than other communities, which concentrate their ideas on one, specific area. Huntington went all in on four different projects at once. 

“The decision that we made in Huntington, is that in order for us to transform our city, we absolutely don’t have time to wait to have each of these neighborhoods redeveloped,” Williams said.

Those projects include:

  1. The development of brownfields areas in the Highlawn nieghborhood. 
  2. Development of the West End of the city for commercialization. 
  3. Revitalization of Fairfield through the tearing down of the Northcott Court Housing projects. 
  4. Development of high-speed broadband throughout the city. 

Williams says the projects won’t be finished in 11 months, but the city has to show they’re making headway on making changes. 

Bridgeport to Impose Local Sales Tax Under Home Rule

 Bridgeport’s City Council has approved 1 percent local sales tax to finance construction and operation of a proposed indoor recreation facility.

The new tax will go into effect on July 1, 2016.

The Exponent Telegram reports that the council voted on Monday to impose the tax under the state’s home rule program. The program shifts power from the state to the local level.

The city also is repealing its business and occupation tax on manufacturing. The home rule program requires cities that impose a municipal sales tax to reduce business and occupation taxes.

Bridgeport is one of the home rule program’s charter municipalities. Twenty-eight municipalities are now participating in the program, which was created by the Legislature in 2007.

Weirton Council Approves Local Sales Tax Under Home Rule

Taxable items and services offered by Weirton businesses soon will cost an additional penny on the dollar.

The Weirton Daily Times reports that City Council voted on Monday to create a 1 percent municipal sales tax under the state’s home rule program. The council also amended its business and occupation tax to eliminate a wholesale tax.

State law requires cities that impose a municipal sales tax to reduce business and occupation taxes.

Mayor Harold Miller says the sales tax is expected to generate $1.2 million to $1.5 million in revenue for the city.

Weirton is among 28 cities participating in the home rule program. The program shifts power from the state to the local level.

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