OUR THOUGHTS ON:

West Virginia Municipal Sales and Use Tax

State and Local Tax

By Matthew Dodge

Taxpayers conducting business in West Virginia are reminded that effective October 1, 2013, the cities of Charleston, Harrisville, Quinwood and Wheeling have imposed a municipal (or local) sales and use tax. The municipal rate is 0.5% in Charleston and Wheeling and 1% in Harrisville and Quinwood, respectively. These four cities join Huntington, Rupert and Williamstown in imposing municipal sales and use taxes.

The local sales tax is imposed in the same manner as the state sales tax in terms of tax base and exemptions. The municipal sales and use tax is destination-based, meaning the tax must be collected or paid based on the location where the product or service is shipped or used. Any taxpayer registered with the West Virginia Tax Department to collect sales tax that is “doing business” in a municipality that imposes the local sales and use tax must collect the local tax. “Doing business” includes having an office, physical location or representative as well as shipping or delivering product in the area or performing taxable services.

The local use tax applies to consumers when the vendor does not charge the municipal sales tax. This normally occurs when purchasing taxable products or services from an out-of-state vendor.

Taxpayers, retailers and service providers should review their records and tax systems to verify that the municipal sales and use tax is properly applied.

© 2013 Schneider Downs. All rights-reserved. All content on this site is property of Schneider Downs unless otherwise noted and should not be used without written permission.

This advice is not intended or written to be used for, and it cannot be used for, the purpose of avoiding any federal tax penalties that may be imposed, or for promoting, marketing or recommending to another person, any tax related matter.

You’ve heard our thoughts… We’d like to hear yours

The Schneider Downs Our Thoughts On blog exists to create a dialogue on issues that are important to organizations and individuals. While we enjoy sharing our ideas and insights, we’re especially interested in what you may have to say. If you have a question or a comment about this article – or any article from the Our Thoughts On blog – we hope you’ll share it with us. After all, a dialogue is an exchange of ideas, and we’d like to hear from you. Email us at contactSD@schneiderdowns.com.

Material discussed is meant for informational purposes only, and it is not to be construed as investment, tax, or legal advice. Please note that individual situations can vary. Therefore, this information should be relied upon when coordinated with individual professional advice.

© 2018 Schneider Downs. All rights-reserved. All content on this site is property of Schneider Downs unless otherwise noted and should not be used without written permission.

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