Downtown Martinsburg
New Business Tax Credit

  New Business Tax Credit
Business & Occupation Tax

July 1, 2008

(a)  Definitions.  The following shall apply to this article and section only: 

    (1)  New business:

  New business shall be deemed as any new
   commercial, wholesale, retail, manufacturing, or
   service entity which shall physically locate its
   principal place of business within the corporate
   limits of the City of Martinsburg, or an existing
   commercial, wholesale, retail, manufacturing, or
   service entity whose principal place of business is
   located outside the corporate limits of the City of
   Martinsburg and has relocated its principal place of
   business within the corporate limits of the City of
   Martinsburg, either by purchase of real property or
   by virtue of a lease of five (5) years or more
, and which is subject to the city's
   business and occupation tax.

   NOTE:  Current City policy accepts a minimum lease of six (6) months with an option to renew such lease.

         New business shall also include existing
   commercial entities which are brought within the
   corporate limits of the city by way of annexation or
   minor boundary adjustment. 

         No commercial entity which has conducted
   business within the corporate limits of the city
   currently or in the past, and which changes its
   name or changes its business structure shall be
   considered as a new business under this section,
   unless prior written approval has been given by the
   City Manager.

         Additionally, the acquisition and continued
   operation of an existing commercial entity by
   another entity subject to the business and
   occupation tax of the city, whether such
   acquisition is by purchase or lease, shall not be
   considered a new business.

   (2)  Property:

Property shall mean real property and
   improvements thereto, but only if such property
   was purchased or leased for use as a component
   part of an ongoing business operation located
   within the city.  

   (3)  Business and occupation tax liability:

  As used within this article shall mean that
   annual tax computed by the application of the
   rates contained in Article 755 Sections 755.02,
   755.02a, 755.02b and 755.02c, less the amount of
   annual exemption allowed and determined under
   section 755.04

(b)  Amount of tax credit. 

   (1)  For new businesses within the corporate
    limits of the city, the business entity will be
    allowed a:

         (i)  Seventy-Five (75) percent credit against
         the business and occupation tax liability
         annually for the first year from the date the
         entity qualifies for the tax credit.

         (ii)  Fifty (50) percent credit against the
         business and occupation tax liability annually
         for the second year from the date the entity
         qualifies for the tax credit.

         (iii)  Twenty-Five (25) percent credit
       against the business and occupation tax
         liability annually for the third year from the
         date the entity qualifies for the tax credit.

  (2)   The maximum tax credit allowed for any
  new business that qualifies for the tax credit
  shall be Three Hundred Thousand dollars

  (3)   The credit may only be taken when an
  otherwise qualifying business files the required
  business and occupation tax return on or before
  the required due date.  If the return is not filed
  timely then the credit will be disallowed for the
  time period in which the return is delinquent.

(c)  Administration and enforcement.  The administration of this section is vested in, and shall be exercised by, the Finance Director of the city, who in connection therewith shall prescribe all necessary forms and returns. The Finance Director will promulgate all necessary rules and regulations that are necessary for the making of returns, and for the enforcement of this section. 

       The Finance Director is hereby authorized to make any necessary determinations regarding forfeiture, qualification, or carryover of the tax credit authorized by this section, and, may determine that a particular tax credit application violates the spirit and intention of this section and deny the credit on that basis.

(d)  Severability.  If this section or any portion thereof, or the application of this section in any circumstance is held unconstitutional or invalid, such unconstitutionality or invalidity shall not affect other sections of this chapter, and to this end each and every section, subsection, provision, clause, and phrase of this section is declared to be severable. 

Tax Credit - Business & Occupation (B&O) Tax Quarterly Form