OFFICE OF CITY COLLECTOR

915 Quarrier St., Suite 4 │Charleston, WV 25301 │(304) 348-8024 │(304) 347-1810 (fax)

Email: citycollector@cityofcharleston.org

The Office of City Collector is responsible for registering all individuals/firms conducting business in the City of Charleston. In addition, we are also responsible for collecting all taxes and fees due the city, including Business & Occupation (“B&O”) Taxes, Municipal Licenses, Amusement Taxes, Public Utility Taxes, Hotel/Motel Taxes, Fire Service Fees, Refuse Fees, and City Service Fees (“CSF”).

The Office of City Collector is located in the new City Service Center located at 915 Quarrier Street, Suite 4 (corner of Dickinson & Quarrier Streets). Our office is open daily, Monday through Friday, 8:00 a.m. to 5:00 p.m., except holidays. We are here to assist you with any questions or concerns you may have relating to your tax, fee, and licensing requirements and responsibilities.

CITY SERVICE FEE OVERVIEW

The City of Charleston imposes a two dollar ($2.00) per week City Service Fee (“CSF”) on any and all employees working in the City of Charleston. Employers are required to withhold two dollars per week from their employees’ pay. The fee will then be remitted quarterly to the Office of City Collector. CSF payments not received within one month following the end of the calendar quarter will be subject to penalties and interest.

If you work two jobs within the City of Charleston and the fee is being deducted by both of your employers, simply complete a Prior Payment Form (CSF-1). Fill out areas one (1) and two (2) and sign area three (3). One of your employers must sign area four (4). Once the completed form is signed, it should then be given to your second employer and retained by them. THE PRIOR PAYMENT FORM SHOULD NOT BE SENT TO THE OFFICE OF CITY COLLECTOR.  

If the fee was withheld from your pay in error, simply complete a Refund Claim Form (CSF-5), attach a copy of your pay stub or some other documentation showing the fee was deducted by mistake, and return to the Office of City Collector. This form must be received within thirty (30) days following the receipt of payment from your employer.

If your business is exempt from our Municipal Business & Occupation Tax, but maintains an office/location in the City of Charleston, you are still required to withhold the fee from your employees. Please complete a “ City Service Fee (Only) Application” and return it to our office. If you are uncertain as to whether your business is exempt from our B&O Tax, please contact our office at the above telephone number or email address.

LINK TO USER FEE BILL 7294

LINK TO CITY SERVICE FEE INCREASE NOTIFICATION LETTER

CITY SERVICE FEE FREQUENTLY ASKED QUESTIONS (FAQ’S)

WHO IS REQUIRED TO FILE?

All full-time and part-time employees who regularly report to work at a physical location, or work from home within the City of Charleston. Employers will deduct the fee from their employees pay, and remit it on their behalf. Self-employed individuals will remit the fee on their own.

WHEN IS THE RETURN DUE?

The return is due within one month following the end of the taxable quarter. Quarterly payments are due in April, July, October and January. Penalty and interest will be applied against any return that is postmarked after these months.

WHAT ARE THE PENALTIES?

The penalty shall be 5% for the first month, or fraction thereof, and 2% of the fee for each succeeding month or fraction thereof.

MY EMPLOYEES ARE NOT PAID WEEKLY. HOW DO I CALCULATE THE CSF AMOUNT(S) TO WITHHOLD FROM THEIR PAY?

Please refer to the Employer Worksheet (CSF-4) to determine the amount(s) to withhold based on a weekly, bi-weekly, monthly, or bi-monthly pay.

WHAT IF I WORK TWO JOBS WITHIN THE CITY? DO I HAVE TO PAY THE FEE TWICE?

No. Simply complete a CSF-1 Prior Payment Form and give it to your second employer. Once this form is received by your second employer, they are no longer required to withhold the fee.

ARE NON-PROFIT ENTITIES, RELIGIOUS ORGANIZATIONS, OR OTHER BUSINESSES THAT ARE EXEMPT FROM BUSINESS & OCCUPATION TAX REQUIRED TO DEDUCT THE FEE FROM THEIR EMPLOYEES?

Yes. All businesses and self-employed individuals working in the City of Charleston are required to withhold and remit the fee.

RATHER THAN DEDUCTING THE FEE FROM MY PAY, CAN MY EMPLOYER PAY THE FEE FOR ME?

There is no provision in Chapter 6, Article II of the Code of the City of Charleston prohibiting your employer from paying the fee for you; however, it may be considered taxable income for federal and state tax purposes. Employers should consult their tax advisor for more information.

CAN I GET A REFUND IF MY EMPLOYER DEDUCTED THE FEE IN ERROR?

Yes. If your employer has withheld the CSF, but has not yet remitted the fee for the particular quarter, you will need to request the refund from your employer. If your employer has already remitted the fee for the particular quarter, simply complete a CSF-5 Refund Claim Form and remit it to the Office of City Collector. This form must be received by our office within thirty (30) days following the receipt of payment from your employer. Otherwise, you will have to seek a refund from your employer.

CAN I PAY THE FEE YEARLY?

No. Unfortunately, our tax, fee, and revenue system will not permit us to handle annual payments of the fee at this time.

ARE THERE A MINIMUM NUMBER OF HOURS YOU HAVE TO WORK IN ORDER TO BE REQUIRED TO PAY THE FEE?

No. All part-time employees are required to pay the fee.

DOES AN EMPLOYEE HAVE TO PAY THE FEE IF THEY ARE ON PAID LEAVE, VACATION, PAID SICK LEAVE, PAID LEAVE OF ANY KIND, OR OUT OF TOWN ON BUSINESS?

Yes. The fee continues to apply with respect to an employee who, prior to the paid out of office time, was responsible for the fee.

CAN I USE MY CREDIT OR DEBIT CARD TO PAY THE FEE?

 No. Currently, the payment options accepted by the City are check and cash. We are looking at the possibility of adding other payment options in the near future, including credit and debit cards, as well as on-line payments.

BUSINESS & OCCUPATION TAX OVERVIEW

The City of Charleston broadly imposes a Business and Occupation (“B&O”) Privilege Tax upon all persons for the act or privilege of engaging in business activities within the City of Charleston. The term “business” shall include all activities engaged in or caused to be engaged in with the object of gain or economic benefit, either direct or indirect. In determining whether a business is engaged in for “direct or indirect economic gain or benefit”, the lack of profit suffered in said activity is not relevant; nor is it material that the business was engaged in without profit as the primary motivation.

B&O Tax is measured by the application of rates against values of products, gross proceeds of sale, or gross income of the business, as the case may be. All persons engaging in business activities in the City of Charleston are subject to the B&O Tax unless specifically exempted by Chapter 110, Article II, Section 110-63 of the Code of the City of Charleston.

Certain occupations and business activities are classified, and the classifications are significant inasmuch as the tax liability varies because of the different rates established for the types of business activities engaged in by the taxpayer. The business activity usually determines the taxable classification, and where different business activities are conducted, the taxpayer is liable for tax under each taxable classification involved. If you are uncertain as to your business activity or how your business should properly calculate the tax, please contact our office.

For individuals or businesses that perform residential or commercial contracting activities, the Office of City Collector has available, upon request, a Construction Projects Handbook. This handbook details the B&O Tax responsibilities of individuals in the construction industry.

In addition to registering with the Office of City Collector, all contractors must also register with the City of Charleston Building Department. If you have any questions or concerns regarding your contractor registering status, please contact the Building Department at 348-6833.

BUSINESS & OCCUPATION TAX FREQUENTLY ASKED QUESTIONS (FAQ’S)

WHO IS REQUIRED TO FILE?

All persons who are engaged in business within the City of Charleston are required to file B&O Tax returns. Persons domiciled outside the city limits who (a) lease tangible personal property to lessees in the municipality, or (b) perform construction or installation contracts in the municipality, or (c) render services to others therein, are doing business in the municipality, irrespective of the domicile of such persons, and irrespective of whether or not such persons maintain a permanent place of business in the City of Charleston.

In addition, persons domiciled outside the City of Charleston who sell or deliver tangible personal property to persons in the municipality, are doing business in the city, irrespective of the domicile of such persons, and irrespective of whether or not such persons maintain a permanent place of business in the City of Charleston.

Persons domiciled in and having a place of business in the City of Charleston who (a) sell or lease personal property to buyers or lessees outside the municipality, or (b) perform construction or installation contracts outside the municipality, or (c) render services to others outside the city, are doing business both within and without the City of Charleston. Whether or not such persons are subject to B&O Tax depends on the kind of business and the manner in which it is transacted. The following general principles determine tax liability under the municipal B&O Tax.

Selling Personal Property:

Gross income or gross proceeds of sales derived from sales within West Virginia, which is not taxed or taxable by any other municipality are included in the measure of Charleston B&O Tax if the sales are either directed from a city location, or if the taxpayer’s principal West Virginia offices is located in the City of Charleston.

If the taxpayer has only one office location, and this office is located within the City of Charleston, and its activities elsewhere in West Virginia are neither taxed nor taxable by another municipality, the gross income or gross proceeds from those activities are taxable by the City of Charleston.

 Construction or Installation Contracts in the City of Charleston:

When the business involves a construction or installation contract in the City of Charleston, no deduction from the measure of the tax is permitted, even though the contractor is domiciled outside the City of Charleston, and maintains a place of business outside the municipality.

Construction or Installation Contracts Outside the City of Charleston:

When the business involves a construction or installation contract outside the City of Charleston, the tax does not apply to any part of the income derived therefrom, even though the contractor is domiciled in the City of Charleston, and maintains a place of business therein, which may contribute to the contract performed outside the municipality.

Rendering Services:

Gross income or gross proceeds of sales derived from services within West Virginia, which is not taxed or taxable by any other municipality are included in the measure of Charleston B&O Tax if the services are either directed from a city location, or if the taxpayer’s principal West Virginia office is located in the City of Charleston.

If the taxpayer has only one office location, and this office is located within the City of Charleston, and its activities elsewhere in West Virginia are neither taxed nor taxable by another municipality, the gross income or gross proceeds from those activities are taxable by the City of Charleston.

If you are uncertain if your business activity is subject to B&O Tax, please contact our office.

MY BUSINESS IS ALREADY REGISTERED WITH THE STATE OF WEST VIRGINIA. DO I STILL NEED TO REGISTER WITH THE CITY OF CHARLESTON?

Yes. The City of Charleston is a separate and distinct entity from the State of West Virginia.

 WHAT IS GROSS INCOME?

Gross income means the gross receipts of the taxpayer, without any deduction on account of the cost of property sold, the cost of materials used, labor costs, taxes, royalties paid in cash or in kind or otherwise, interest or discount paid or any expense whatsoever.

WHAT ARE THE TAX RATES?

WHEN IS THE B&O TAX RETURN DUE?

The return is due within one month following the end of the taxable quarter. Quarterly payments are due in April, July, October and January. Penalty and interest will be applied against any return that is postmarked after these months.

 WHAT ARE THE PENALTY & INTEREST RATES?

The tax, if not paid when due, shall bear interest at the rate of 8% per annum from the date the return is due. The penalty shall be 5% for the first month, or fraction thereof, and 1% of the tax for each succeeding month or fraction thereof.

AM I REQUIRED TO FILE EVEN IF I HAD NO INCOME DURING A PERIOD?

Yes. All individuals who usually conduct taxable business activity within the City of Charleston, but have no business activity during a particular reporting period must file a “zero” return.

CAN I USE MY CREDIT OR DEBIT CARD TO PAY THE TAX?

No. Currently, the payment options accepted by the City are check and cash. We are looking at the possibility of adding other payment options in the near future, including credit and debit cards, as well as on-line payments.

WHAT IF I OVERPAID THE TAX, CAN I RECEIVE A REFUND?

Yes. Any taxpayer claiming to have overpaid any tax, interest, or penalty shall file a claim in writing to the City Collector within three years after the due date of the return or within two years from the date the tax was paid, whichever such period expires the later, or if no return was filed by the taxpayer, within two years from the time the tax was paid.

WHAT IF I UNDERPAY OR FAIL TO PAY THE TAX?

If you underpay or fail to pay the tax, the City Collector may, at any time, issue an assessment. Upon receiving an assessment, you have thirty (30) days to: (1) remit the assessment balance due, or (2) contest the assessment and file a Petition for Reassessment, either in person or via certified mail. If you fail to comply with either number (1) or (2) above, the assessment will become final and conclusive, and a lien will be filed against you.

HOW DO I CONTEST AN ASSESSMENT?

To contest an assessment, you must file a Petition for Reassessment with the City Collector, either in person or by certified mail within 30 days from the date of the assessment. Upon receipt of a timely filed petition, the City Collector will schedule an administrative hearing within 90 days of the filing of the Petition for Reassessment, and provide the taxpayer written notice of the date, time, and location of the hearing. The hearing will be informal, and conducted in an impartial manner by the City Collector, or a hearing examiner designated by the City Collector. The burden of proof shall be upon the taxpayer to show the assessment is incorrect and contrary to law, in whole, or in part.

LINK TO DOCUMENTS AND FORMS

City of Charleston  501 Virginia Street, E. Charleston, WV 25301