Weirton Area Chamber of Commerce President Brenda Mull opposes the city’s proposed business and occupation tax during a Thursday press conference.
WEIRTON, W.Va. — Some businesses in Weirton said they will have no choice but to leave town if City Council enacts a business and occupation tax to close a projected $1.6 million budget shortfall by next year.
Weirton Area Chamber of Commerce members gathered Thursday at the Holiday Inn in Weirton to urge council members to consider other options – such as enacting a municipal sales tax, which it could do if accepted into the state Home Rule Pilot Program – before enacting a B&O tax. Council passed first reading of an ordinance enacting the tax during a special meeting June 13.
“It’s a bad tax, in our opinion,” chamber President Brenda Mull said. “It closes businesses, it kills jobs and it prevents new businesses from coming in.”
The B&O tax, when coupled with a proposed 20-percent reduction in the city’s police and fire service fee, would bring in an additional $1.7 million in revenue, city officials have said – more than enough to fill the anticipated budget shortfall for the 2015-16 fiscal year.
City leaders have said they are reluctant to rely on a possible future sales tax to close the projected budget gap. Weirton is a few months away from learning whether it will even be accepted into the home rule program, and officials have said it’s too early to tell how much revenue such a tax might bring in.
But chamber members pointed out that Weirton’s budget for the fiscal year set to begin July 1 is fully funded, and a decision doesn’t need to be made immediately. A sales tax of 0.5-1 percent would be sufficient, they believe, and would spread the burden of making up the shortfall among a greater number of people, including out-of-town shoppers.
“Why act in haste?” said Nick Latousakis, chairman of the chamber board…