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House Committee on Political Subdivisions debates B & O taxes and stormwater fees

West Virginia Press Association Staff Report

CHARLESTON, W.Va. – The House Committee on Political Subdivisions, on Tuesday, debated four bills designed to limit municipal authority with regard to penalizing both businesses and water customers, as well as exempting subcontractors from certain municipal taxes.

Proposed by Del. Mike DeVault, R-Marion, HB 4249 seeks to free subcontractors from the requirement to pay municipal business and occupation (B & O) taxes. 

As explained by Committee Counsel Robert Akers, “Essentially general contractors have to pay it on their gross receipts, and the subcontractors that they hire would turn around and have to pay it again. As it trickles through the businesses, everybody pays.”

“This bill would stop that process, and only the general contractor at the top of the pyramid would pay the B & O tax to the local governing authority,” Akers added. 

In response to a question from Del. Larry Rowe, D-Kanawha, regarding the total cost of the tax change, Akers advised that, “It is impossible to determine the decrease in revenue to each county. Every city is different.”

An amendment proposed by Del. Don Forsht, R-Berkeley, which would move the bill’s effective date to after July 1, 2026, was adopted by the committee. HB 4249, as amended, will now be referred to the House Finance Committee for further consideration. 

HB 4782, sponsored by Del. Chuck Horst, R-Berkeley, and once again explained by Akers, “Was prepared to prevent municipalities from targeting protected businesses with planning and zoning ordinances that are more restrictive than those that are placed on other businesses within their jurisdiction.”

Akers noted that three aspects of a business which municipalities would be prevented from restricting include hours for selling and servicing firearms, hours for shooting ranges, and lawful sale of firearms and other weapons. 

“Essentially a city will not be able to use a planning or zoning ordinance to put undue restrictions upon these types of businesses, unless they’re putting it on all of the businesses within their jurisdiction,” Akers added. “

At the conclusion of Akers explanation, Del. Evan Hansen, D-Monongalia, asked, “Is this bill saying you can not limit the operating hours of gun shops?”

“With a planning ordinance, you can not limit the operating hours of a gun shop unless you’re limiting the operating hours of other businesses, like ice cream parlors,” Akers replied. “If you’re going to regulate one business, you have to regulate them all.”

Hansen made a motion for further discussion to be postponed for a period of one week while amendments could be prepared. However, that motion was defeated. HB 4782 will now be referred to the House Judiciary Committee for their review. 

HB 4864, sponsored by Del. John Hardy, R-Berkeley, seeks to prevent municipalities from disconnecting a customer’s water service due to non-payment of stormwater management (sewer) fees. 

Once more explained by Akers, HB 4864, “Allows municipalities to impose a lien on property, but prohibits them from actually shutting off services for non-payment of a stormwater fee.”

“So if you don’t pay your stormwater fee, they can’t shut your water off,” Akers added. “But they can put a lien on your property.”

Questions regarding rental properties were raised, specifically in the case of non-payment by a tenant. In such instances, according to Akers, the lien would still be placed on the property.

“The tenant wouldn’t have anything to put a lien against,” Akers said. “Maybe their personal property if they owned a car.”

Akers then referenced subsection “K” of the bill to confirm his response, adding, “Twice it refers to ‘lot, land, or building,’ so the landowner, it looks like that’s where the lien would go.”

“The lease may pass responsibility off,” Akers noted. “But under this bill, the property is where the lien is going to attach.”

After nearly 30 minutes of discussion, the committee adopted a motion to revists HB 4864 during their next scheduled meeting. 

In other business, the committee advanced HB 4704. Sponsored by Del. Daniel Linville, R-Cabell, the bill calls for the creation of “Infrastructure-ready jurisdictions” within individual municipalities. A similar piece of legislation passed the House of Delegates during the 2023 Legislative Session, but stalled in the Senate. With the committee’s adoption, HB 4704 will now be referred to the House Committee on Technology and Infrastructure. 

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