This bill amends the Code of West Virginia to impose limitations on municipal business and occupation taxes. Specifically, it prohibits any political subdivision or municipality from computing, imposing, or collecting a business and occupation tax in any tax year after 2023 on any category of business activity that was not already being taxed in or before the tax year 2024. Additionally, the bill introduces a phased reduction and eventual elimination of the municipal business and occupation tax on the sale of new automobiles that have never been registered, starting with a 50% reduction effective July 1, 2023, followed by an additional 50% reduction in 2024, and complete elimination by July 1, 2025.

The bill also clarifies that municipalities may impose a business and occupation tax on specific activities, such as aircraft repair services, and establishes maximum tax rates that cannot exceed those imposed by the state. It includes provisions for tax credits to incentivize new and expanding businesses, outlines administrative procedures for tax assessment and collection, and specifies that payments postmarked by the due date will not incur late fees. Furthermore, it restricts third-party vendors from charging more than 20% of the taxes collected on behalf of municipalities. Overall, the bill aims to streamline and limit the scope of municipal taxation on businesses.

Statutes affected:
Introduced Version: 8-13-5