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.

Resources

• B&O Quarterly Reporting Form
• B&O Quarterly Return--Banking Institutions ONLY
• Business Licensing Information
• New Business and Downtown District Tax Credit Information

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