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Subcontractors not properly paying taxes

By DAVID BEARD

The Dominion Post

CHARLESTON, W.Va.  — A single paragraph in state contracts may help municipalities collect Business and Operation Tax dollars due to them, legislative leaders learned Dec. 3.

Justin Robinson, audit manager for the legislative auditor’s office, told the Post Audits Subcommittee that his office learned about an issue that arises when subcontractors operate under a primary state contractor.

Some subcontractors, he said, are not properly registering with the local government where they’re working. As a result, these subcontractors are not properly paying local B&O taxes.

The proposed solution, Robinson, said, is a new paragraph to be added to all bidding documents that requires the contractor to notify its subcontractors of their potential responsibility to register with and pay B&O and other pertinent local taxes to all municipalities where they’re working.

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