CONSUMERS SALES AND USE TAXES

Charleston, W. Va., City Code ch. 111

in effect

Charleston, W. Va., City Code § 111-1 Council findings.

Sec. 111-1. - Council findings. The municipal home rule board on April 19, 2013, approved the city's amending of its home rule plan to enact a consumers sales and service tax and a use tax pursuant to W. Va. Code § 8-1-5a without the limiting restrictions in W. Va. Code § 8-13C-1 et seq. In accordance with the home rule plan amendment; the city council hereby finds and declares that the adoption by this city for its consumers sales and service tax and use tax provisions of the Code of West Virginia, 1931, as amended relating to imposition, administration, collection and enforcement of the state consumers sales and service tax codified in W. Va. Code § 11-15-1 et seq., the state use tax codified in W. Va. Code § 11-15A-1 et seq., and the streamlined sales and use tax act codified in W. Va. Code § 11-15B-1 et seq. will (1) simplify collection of the taxes, (2) simplify preparation of consumers sales and use tax returns by taxpayers, and (3) improve enforcement of the city's sales and use taxes. The council does, therefore, declare that this chapter be construed so as to accomplish the foregoing purposes. (Bill No. 7577, § 1, 5-20-2013)

Charleston, W. Va., City Code § 111-2 Definitions.

Sec. 111-2. - Definitions. (a) Terms used in this chapter or in the administration, collection and enforcement of the taxes imposed by this chapter and not otherwise defined in this chapter shall have the meanings ascribed to them in articles nine, ten, fifteen, fifteen-a and fifteen-b, chapter eleven of the Code of West Virginia, 1931, as amended. (b) As used in this section: (1) Business includes all activities engaged in or caused to be engaged in by any person with the object of gain or economic benefit, direct or indirect, and all activities of the state and its political subdivisions which involve sales of tangible personal property or the rendering of services when those service activities compete with or may compete with the activities of other persons. (2) City or this city means the City of Charleston, West Virginia. (3) Code of West Virginia means the Code of West Virginia, 1931, as amended. (4) Person means any individual, partnership, association, corporation, limited liability company, limited liability partnership or any other legal entity, including this state or its political subdivisions or an agency of either, or the guardian, trustee, committee, executor or administrator of any person. (5) Purchase means any transfer, exchange or barter, conditional or otherwise, in any manner or by any means whatsoever, for a consideration; (6) Purchase price means the measure subject to the taxes imposed by this chapter and has the same meaning as sales price; (7) Purchaser means a person who purchases tangible personal property, custom software or a service taxed by this chapter. (8) Sale, sales or selling have the meaning ascribed to those terms in article fifteen-b, chapter eleven of the Code of West Virginia. (9) Sales price has the meaning ascribed to that term in article fifteen-b, chapter eleven of the Code of West Virginia. (10) Sales tax means the tax levied under section 111-3 of this chapter. (11) Service or selected service have the meaning ascribed to those terms in article fifteen-b, chapter eleven of the Code of West Virginia. (12) State sales tax means the tax levied by article fifteen, chapter eleven of the Code of West Virginia. (13) State use tax means the tax levied by article fifteen-a, chapter eleven of the Code of West Virginia. (14) Tax means the taxes imposed by this chapter and includes additions to tax, interest and penalties levied under article ten, chapter eleven of the Code of West Virginia, 1931, as amended. (15) Tax Commissioner means the chief executive office of the tax division of the Department of Revenue of this state, as provided in W. Va. Code § 11-1-1. (16) Ultimate consumer or consumer means a person who uses or consumes services or tangible personal property or custom software. (17) Use for purposes of the tax imposed by section 111-4 of this chapter means and includes: a. The exercise by any person of any right or power over tangible personal property or custom software incident to the ownership, possession or enjoyment of the property, or by any transaction in which possession of or the exercise of any right or power over tangible personal property, custom software or the result of a taxable service is acquired for a consideration, including any lease, rental or conditional sale of tangible personal property or custom software; or b. The use or enjoyment in this state of the result of a taxable service. As used in this definition, "enjoyment" includes a purchaser's right to direct the disposition of the property or the use of the taxable service, whether or not the purchaser has possession of the property. The term "use" does not include the keeping, retaining or exercising any right or power over tangible personal property, custom software or the result of a taxable service for the purpose of subsequently transporting it outside the city state for use thereafter solely outside this city. (18) Use tax means the tax imposed by section 111-4 of this chapter. (19) Vendor means any person engaged in this city in furnishing services taxed by this chapter or making sales of tangible personal property or custom software. "Vendor" and "seller" are used interchangeably in this chapter. (Bill No. 7577, § 1, 5-20-2013)

Charleston, W. Va., City Code § 111-3 Imposition of consumers sales and service tax.

Sec. 111-3. - Imposition of consumers sales and service tax. For the privilege of selling tangible personal property or customer software and for the privilege of furnishing certain selected services, a vendor doing business in this city shall collect from the purchaser the taxes imposed by this section and pay the amount of taxes collected to the tax commissioner at the same time and in the same manner as the consumers sales and service tax imposed by article fifteen, chapter eleven of the Code of West Virginia, 1931, as amended. The rate of tax shall be one-half of one percent of the sales price, as defined in section two, article fifteen-b, chapter eleven of the Code of West Virginia, 1931, as amended, of the tangible personal property, custom software or taxable service purchased: Provided, that for sales of tangible personal property, custom software and taxable services made on and after July 1, 2015, the rate of tax imposed by this section shall be one percent of the sales price. (Bill No. 7577, § 1, 5-20-2013; Bill No. 7633, 11-3-2014)

Charleston, W. Va., City Code § 111-4 Imposition of use tax.

Sec. 111-4. - Imposition of use tax. An excise tax is hereby levied and imposed on the use in this city of tangible personal property, custom software and the results of taxable services, to be collected and paid to the tax commissioner as agent for the city in the same manner that state use tax is collected under article fifteen-a and article fifteen-b, chapter eleven of the Code of West Virginia, 1931, as amended. The rate of tax shall be one-half of one percent of the purchase price, as defined in article fifteen-b, chapter eleven of the Code of West Virginia, of the tangible personal property, custom software or taxable service used within the city: Provided, That for tangible personal property, custom software and the results of taxable service used in the City of Charleston on and after July 1, 2015, the rate of tax imposed by this section shall be one percent of the purchase price. (Bill No. 7577, § 1, 5-20-2013; Bill No. 7633, 11-3-2014)

Charleston, W. Va., City Code § 111-5 Calculation of tax on fractional parts of a dollar.

Sec. 111-5. - Calculation of tax on fractional parts of a dollar. The tax computation under section 111-3 and section 111-4 shall be carried to the third decimal place and the tax rounded up to the next whole cent whenever the third decimal place is greater than four and rounded down to the lower whole cent whenever the third decimal place is four or less. The vendor may elect to compute the tax due on a transaction on a per item basis or on an invoice basis provided the method used is consistently used during the reporting period but the method used shall be the same as that used for purposes of computing the state sale or use tax. (Bill No. 7577, § 1, 5-20-2013)

Charleston, W. Va., City Code § 111-6 State and local sales and use tax bases.

Sec. 111-6. - State and local sales and use tax bases. The taxable base of the taxes imposed by section 111-3 and 111-4 of this chapter shall be identical to the sales and use tax base of this state except as provided in section 111-7 of this chapter unless otherwise prohibited by federal law as required by W. Va. Code § 11-15B-34. (Bill No. 7577, § 1, 5-20-2013)

Charleston, W. Va., City Code § 111-7 Exceptions.

Sec. 111-7. - Exceptions. The taxes imposed by this chapter do not apply to: (1) The sale or use of motor fuel, as defined in article fourteen-c, chapter eleven of the Code of West Virginia, 1931, as amended, upon which the tax imposed by that article is collected. (2) The sale or use of motor vehicles upon which the tax imposed by section three-c, article fifteen, chapter eleven of the Code of West Virginia, 1931, as amended, is paid. (3) The purchase or use of any tangible personal property, custom software or service that the city is prohibited from taxing under the laws of this state. (4) The tax imposed by section 111-3 does not apply to any transaction that is exempt from the tax imposed by article fifteen, chapter eleven of the Code of West Virginia. (5) The tax imposed by section 111-4 does not apply to any purchase upon which the tax imposed by section 111-3 has been paid. (Bill No. 7577, § 1, 5-20-2013)

Charleston, W. Va., City Code § 111-8 Credit for local sales tax lawfully paid to another municipality.

Sec. 111-8. - Credit for local sales tax lawfully paid to another municipality. (a) A person is entitled to a credit against the use tax imposed by section 111-4 of this chapter on the use of a particular item of tangible personal property, custom software or results of a taxable service equal to the amount, if any, of sales tax lawfully paid to another municipality for the acquisition of that property, custom software or service: Provided, that the amount of credit allowed may not exceed the amount of use tax imposed by section 111-4 on the use of the tangible personal property, custom software or results of the taxable service in this city. (b) For purposes of this section: (1) "Sales tax" includes a sales tax or compensating use tax imposed on the sale or use of tangible personal property, custom software or the results of a taxable service by the municipality in which the sale occurred; and (2) "Municipality" includes municipalities of this state or of any other state of the United States. (c) No credit is allowed under this section for payment of any sales or use taxes imposed by this state or any other state. For purposes of this paragraph, "state" includes the 50 states of the United States and the District of Columbia but does not include any of the several territories organized by Congress. (Bill No. 7577, § 1, 5-20-2013)

Charleston, W. Va., City Code § 111-9 Local rate and boundary changes.

Sec. 111-9. - Local rate and boundary changes. (a) The tax commissioner is required by W. Va. Code § 11-15B-35 to maintain a database for all jurisdictions levying a sales or use tax in this state. The city shall furnish the tax commissioner with information the tax commissioner requires for that database that will allow the tax commissioner to maintain a database that assigns each five-digit and nine-digit zip code within the city to the proper rate of tax. If any nine-digit zip code area includes area outside this city, the single state and local rate assigned to that area in the tax commissioner's database will be the lowest rate applicable to that area: Provided, that, when sales occur at and are sourced to a physical location of the seller located in the city in that nine-digit zip code area, the seller shall collect the tax imposed by section 111-3 of this chapter. (b) Whenever boundaries of the city change, whether by annexation or de-annexation, the city collector shall promptly notify the tax commissioner in writing of the change in boundaries and provide the tax commissioner with the nine-digit zip code or codes for the area annexed or de-annexed any other information the tax commissioner may require to maintain the database. (Bill No. 7577, § 1, 5-20-2013)

Charleston, W. Va., City Code § 111-10 State level administration.

Sec. 111-10. - State level administration. (a) The tax commissioner is responsible for administering, collecting and enforcing the taxes imposed by this chapter as provided in W. Va. Code § 8-13C-6 and § 11-15B-33. The city may enter into an agreement with the tax commissioner that will allow employees of the city auditing a vendor with a physical location in the city for compliance with the city's business and occupation tax to also audit that location for compliance with the sales and use tax laws of this state and this city and to share that information with the tax commissioner. (b) The tax commissioner may retain from collections of the taxes imposed by this chapter a fee of up to one percent of the amount of the taxes collected by the tax commissioner prior to the effective date of the legislative rule setting the fee pursuant to W. Va. Code § 11-10-11c. The fee retained from taxes collected on and after that date shall be the fee allowed by W. Va. Code § 11-10-11c or by any other state law or legislative rule. (c) The tax commissioner shall deposit all the proceeds from collection of the taxes imposed by this chapter, minus any fee for collecting, enforcing and administering taxes retained under section 111-10, in the subaccount for this city established in "municipal sales and service tax and use tax fund," an interest bearing account created in the state treasury pursuant to W. Va. Code § 8-13C-7. All moneys collected and deposited in the subaccount for the city shall be remitted at least quarterly by the state treasurer to the City Treasurer, as provided W. Va. Code § 8-13C-7. (Bill No. 7577, § 1, 5-20-2013)

Charleston, W. Va., City Code § 111-11 Administrative procedures.

Sec. 111-11. - Administrative procedures. Each and every provision of the West Virginia Tax Procedure and Administration Act set forth in article ten, chapter eleven of the Code of West Virginia applies to the administration, collection and enforcement of the sales and use taxes imposed pursuant to this chapter, except as otherwise expressly provided in article thirteen-c, chapter eight of the Code of West Virginia, with like effect as if that act were applicable only to the taxes imposed by this chapter and were set forth in extenso in this chapter, as provided in W. Va. Code § 8-13C-6. (Bill No. 7577, § 1, 5-20-2013)

Charleston, W. Va., City Code § 111-12 Criminal penalties.

Sec. 111-12. - Criminal penalties. Each and every provision of the West Virginia Tax Crimes and Penalties Act set forth in article nine, chapter eleven of the Code of West Virginia applies to the administration, collection and enforcement of the sales and use taxes imposed pursuant to this chapter with like effect as if that act were applicable only to the taxes imposed pursuant to this chapter and were set forth in extenso in this chapter, as provided in W. Va. Code § 8-13C-6: Provided, that the criminal penalties imposed upon conviction for a criminal violation of this chapter may not exceed the maximum penalties allowed by law for that violation. (Bill No. 7577, § 1, 5-20-2013)

Charleston, W. Va., City Code § 111-13 Automatic updating.

Sec. 111-13. - Automatic updating. Any amendments to articles nine, ten, fifteen, fifteen-a and fifteen-b, chapter eleven of the Code of West Virginia shall automatically apply to a sales or use tax imposed pursuant to this chapter, to the extent applicable, as provided in W. Va. Code § 8-13C-6. (Bill No. 7577, § 1, 5-20-2013)

Charleston, W. Va., City Code § 111-14 Deposit of taxes collected in special revenue funds.

Sec. 111-14. - Deposit of taxes collected in special revenue funds. (a) The special revenue fund in the city treasury previously established, designated and known as the City Sales and Use Tax Fund is hereby continued. The second special revenue fund in the city treasury previously established, designated and known as the Uniform Pensions Reserve Fund is hereby continued. The third special revenue fund in the city treasury previously established, designated and known as the Employee Health Insurance Reserves is hereby continued. The City Sales and Use Tax Fund shall continue to receive all revenues received from collection of the city's sales and use taxes, including any interest, additions to tax and penalties deposited with the city treasurer. (b) Revenues in the City Sales and Use Tax Fund shall be used each quarter: (i) first, to satisfy the debt service requirements and any prior debt service requirements deficit on, and to replenish any required reserves in accordance with the bond documents for, any bonds issued by, or other obligations incurred by, the city, from time to time, including any refunding bonds, to finance improvements to the Charleston Coliseum and Convention Center and for any other economic development or public safety projects, including the funding of any reserve funds relating to any such bonds or other obligations, and/or to make lease payments which secure bonds issued to finance improvements to such Charleston Coliseum and Convention Center or other economic development projects; (ii) second, after providing for payment of first priority items, (a) during the period of October 1 through October 31, 2015, or at such other time as the city treasurer receives the quarterly remittance from the state tax department representing collections for the period of June, July, and August, 2015, 40 percent of the revenues received from the taxes imposed by this chapter, or any lessor amount remaining after providing for payment of first priority items, shall be deposited in the Uniform Pensions Reserve Fund, (b) during the period of November 1, 2015 through September 30, 2023, one-half of the revenues received from the taxes imposed by this chapter, or any lessor amount remaining after providing for payment of first priority items, shall be deposited in the Uniform Pensions Reserve Fund, and (c) beginning October 1, 2023, 33 percent of the revenues received from the taxes imposed by this chapter, or any lessor amount remaining after providing for payment of first priority items, shall be deposited in the Uniform Pensions Reserve Fund; and (iii) third, after providing for payment of first and second priority items, in the event there were insufficient funds available in any prior quarter to transfer 40 percent, one-half, or 33 percent, as applicable, of the revenues received from the taxes imposed by this chapter to the Uniform Pensions Reserve Fund, such amounts shall be deposited in the Uniform Pensions Reserve Fund from revenues available in the City Sales and Use Tax Fund; and (iv) fourth, after providing for payment of first, second and third priority items, any unencumbered revenue in the City Sales and Use Tax Fund may periodically be transferred as necessary or convenient to the Employee Health Insurance Reserves. Additionally, there shall be deposited in each fund: (1) all appropriations to the particular fund; (2) all interest earned from investment of the particular fund; and (3) any gifts, grants or contributions received and placed by the city into the City Sales and Use Tax Fund, the Uniform Pensions Reserve Fund, or Employee Health Insurance Reserves. Revenues in the City Sales and Use Tax Fund, the Uniform Pensions Reserve Fund, and the Employee Health Insurance Reserves shall not be treated by any person as general revenue of the city. (c) Revenues in the Uniform Pensions Reserve Fund shall be used: (i) first, pay any required annual contribution established for the closed pension trusts using the optional method set forth in W. Va. Code § 8-22-20(e) after first applying the member contributions and premium tax, and any other dedicated or designated income sources as authorized by law, to any such obligations; (ii) second, after providing for payment of first priority items, to satisfy the city's obligations to the Municipal Police Officers and Firefighters Retirement System for the new members hired after the closure of the pension trusts to new members as provided by W. Va. Code §§ 8-22-20(f)(3) and 8-22a-1, et. seq.; and (iii) third, at such time as the actuarial report required by W. Va. Code § 8-22-20(e) indicates no actuarial deficiency in the closed municipal policemen's or firemen's pension and relief funds, and after providing for payment of first and second priority items and normal costs as contemplated by W. Va. Code § 8-22-20(e)(2), any remaining and unencumbered revenues may be transferred as necessary or convenient to the city's Employee Health Insurance Reserves; Provided: nothing herein shall preclude transfers from the Uniform Pensions Reserve Fund into the city's general revenue account or any other fund or account from time to time in such amounts as may be necessary or convenient to facilitate the payment of obligations or to accomplish the purposes herein, so long as consistent with the priorities set forth in this subsection. (d) Revenue in the Employee Health Insurance Reserves shall be held to satisfy future retiree healthcare, dental, and optical insurance expenses until such the time that the city establishes an irrevocable Other Post Employment Benefits trust for the purpose of funding such benefits for eligible retirees. At such time that the city establishes an Other Post Employment Benefits trust, revenue derived from the distribution in subsection (b) of this section to the Employee Health Insurance Reserves shall be transferred to the trust to be used in accordance with the trust policy. (Bill No. 7577, § 1, 5-20-2013; Bill No. 7633, 11-3-2014; Ord. No. 7660, 7-20-2015; Bill No. 7799, 11-19-2018; Bill No. 7890, 1-4-2021; Bill No. 8010, 8-21-2023)

Charleston, W. Va., City Code § 111-15 Effective date.

Sec. 111-15. - Effective date. This chapter was adopted by city council on May 20, 2013 and took effect from its adoption by city council as provided in Section 41 of the charter of this city. By ordinance, the city suspended the collection of the sales and use taxes until the State Tax Commissioner could provide appropriate notice and lawfully collect the sales and use taxes on behalf of the city. The State Tax Commissioner began collection of the sales and use taxes authorized by this chapter on October 1, 2013. (Bill No. 7577, § 1, 5-20-2013; Bill No. 7633, 11-3-2014)

Source: City of Charleston, West Virginia, City Code and City Charter (Municode Library, library.municode.com)URL: https://library.municode.com/wv/charleston/codes/code_of_ordinances?nodeId=PTIICOOR_CH111COSAUSTAFetched: 11/7/2026