New Business Tax Credit
Business & Occupation Tax
Effective
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
duration, and which is subject to the city's
business and occupation tax.
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
($300,000.00)
(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
