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Buckhannon sales tax may be delayed

McCauley

BUCKHANNON — A bill to allow the City of Buckhannon to begin collecting its municipal sales tax July 1, 2019 instead of January 1, 2020 is now in danger of not passing before the session ends at midnight Saturday.

On Wednesday, March 6, the House Rules Committee moved Senate Bill 535 from the active calendar to the inactive calendar.

“This means the bill will not advance beyond its current second-reading state until the Rules Committee reverses their action,” city attorney Tom O’Neill wrote Buckhannon City Council in a memo.

O’Neill stayed in Charleston to continue to work on advancing the bill.

“Since late Tuesday evening, when I first became aware this was a possibility, I have been attempting to have the Rules Committee members reconsider,” O’Neill continued in the memo. “Unless they move the bill back to the active calendar and read the bill a second time prior to midnight on March 8, our bill will die.”

Sen. Bill Hamilton, R-Upshur, introduced the bill at the request of city officials after they were told by State Tax Commissioner Dale Steager that they could not begin the tax collections due to a timing issue.

The Municipal Home Rule Board adopted the amendment for the City of Buckhannon to enact a 1 percent municipal sales and service and use tax at its Jan. 16 meeting. However, Steager’s office says that because the Home Rule Board meeting came after the beginning of the 2019 calendar year, under code 110CSR28, collection of the tax appears to be permitted only on and after Jan. 1, 2020.

At Thursday’s council meeting, Mayor David McCauley said, “We were very highly pleased with the unanimous action taken by the State Senate and the first reading of the full House went perfect. We are disappointed by this delay that we hope won’t end up being a permanent delay. If they don’t act on it by Saturday’s closing session, it won’t be able to be effectuated July 1.”

“City attorney Tom O’Neill, who is also council for West Virginia Senate, is working with the House Rules Committee, to get the matter back before the full floor so they can take the final vote and approve it.”

Councilman C.J. Rylands asked about contacting the members of the House Rules Committee and McCauley said, “It absolutely wouldn’t hurt.”

The City of Buckhannon is in budget discussions for the 2019-2020 fiscal year and has not included any projected revenues from the sales tax due to the uncertainty. The tax is expected to bring in about $1 million and delaying the date by six months will cost the City of Buckhannon about $500,000.

O’Neill has also requested a waiver from the State Tax Commissioner to allow the City of Buckhannon to begin collecting the tax earlier than Jan. 1, 2020. That is the only other method to get the date moved up.

However, McCauley did share that Senate Bill 4 to permanently enact home rule passed the House of Delegates 87-11. The bill now returns to the Senate and if the Senate agrees with the House changes, will go on to Gov. Jim Justice’s desk.

McCauley noted that Del. Carl “Robbie” Martin, R-Upshur, voted in favor while Del. Patrick Martin, R-Lewis and Del. Caleb Hanna, R-Nicholas, voted no. Robbie Martin represents the majority of Upshur County with Patrick Martin and Hanna representing several precincts.

McCauley said the City of Buckhannon and other home rule cities have been able to accomplish many items through the pilot program and its expansions.

Buckhannon now has opportunities to sell its property in online auctions, can issue on-site citations for housing/zoning violations, has a part-time police officer who aids the Buckhannon Police Department with manpower and was able to enact the Brunch Bill all because of home rule, according to McCauley.

“All of those things have made us more progressive and economically viable,” he said. “Had permanency in home rule not been approved, we arguably would have had to disbanded all those things that home rule allowed us to do including the sales tax that we will be putting into effect no later than Jan. 2020.”

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