Beginning on July 1st of each fiscal year, the City collects Business and Occupation (B&O) Taxes. This tax is collected from anyone conducting business within the corporate limits of the City of Martinsburg.
The City's B & O Tax is based on the gross income (gross receipts) of each business. "Business" as used in the ordinance setting up this tax structure includes all activities engaged in or caused to be engaged in with object gain of economic benefit, either direct or indirect.
"Gross Income" means gross receipts of the taxpayer received as compensation for personal services or derived from trade, business, commerce, or sales without any deductions for the cost of property sold, cost of materials used, labor costs, taxes, royalties, interest and discounts paid, or sums paid to independent contractors.
The filing period for tax returns is quarterly for the three (3) month periods ending September 30th, December 31st, March 31st, and June 30th. All returns are due thirty (30) days after the end of the applicable filing period.
If tax returns are filed delinquent, the City has the right to charge interest at a rate of 0.67% after thirty days plus 0.67% for each succeeding month or fraction thereof. In addition, the City has a right to charge a 5% penalty after thirty days and 1% for each succeeding month or fraction thereof.
Listed below is a breakdown of the current tax rate schedule for the City's Business & Occupation (B&O) Taxes:
Rate per $100
A. Gross Receipts Value Production:
1. Coal 1.00
2. Limestone or Sandstone, quarried or mined, blast
furnace slag 1.50
3. Natural Gas 6.00
4. Sand, Gravel or other mineral, not quarried or
mined, and oil, blast furnace slag 3.00
5. Timber 1.50
6. Other Natural Resource Product 2.00
B. Gross Receipts Value Manufactured Products 0.30
C. 1. Gross Receipts of Retailers and Others 0.45%
2. Gross Receipts of Wholesalers and Jobbers 0.135%
D. 1. Gross Receipts Public Utilities, Street, Interurban
and Electric Railways 1.00
2. Electric Light and Power Companies (Domestic &
Commercial Use) 4.00
3. Electric Light and Power Companies (Other
4. Natural Gas Companies 3.00
5. All Other Public Utilities 2.00
E. Gross Receipts Contracting Business 2.00
F. Gross Receipts Loan Companies (Banking) 1.00
G. Gross Receipts Amusement Business --None.
H. Gross Receipts Service Business or Callings 1.00
I. Gross Receipts Rents, Royalties, Etc. 1.00
If you have any questions concerning the City's Business & Occupation (B&O) Tax, please feel free to contact the City's Tax Auditor at (304) 264-2131 extension 247. For licensing questions, contact the License Clerk at extension 256.