Bill
HB 2036
House Bill 2036 exempts projects funded by state or federal programs from municipal B&O taxes, encouraging local development and easing financial burdens on businesses.
Bill Number: HB 2036
Title: Prohibit municipalities from collecting B&O taxes on projects that are funded by state or federal government programs
Status: To House Revenue
Introduced: February 12, 2025
Classification: Bill
Subject: Taxation
House Bill 2036 aims to amend the West Virginia Code to prohibit municipalities from imposing business and occupation (B&O) taxes on projects that receive funding from state or federal government programs. The intent behind this legislation is to alleviate the financial burden on projects that are already supported by public funds, thereby encouraging development and investment in local communities.
Amendment to Code: The bill seeks to amend §8-13-5 of the Code of West Virginia, specifically addressing the imposition of B&O taxes by municipalities.
Tax Exemption: Municipalities will be prohibited from collecting B&O taxes on any business activities or occupations related to projects that are funded by state or federal government programs. This includes, but is not limited to, projects in sectors such as infrastructure, healthcare, and education.
Existing Tax Framework: The bill maintains the existing framework for B&O taxes, which allows municipalities to impose such taxes on various business activities, but introduces a specific exemption for those funded by government programs.
Municipalities: Local governments will be impacted as they will lose the ability to collect B&O taxes on certain projects, potentially affecting their revenue streams.
Businesses and Contractors: Companies engaged in projects funded by state or federal programs will benefit from the tax exemption, which may encourage them to pursue such funding opportunities.
State and Federal Programs: The bill indirectly supports the objectives of state and federal funding initiatives by reducing the financial liabilities associated with local taxation.
Legislative Journey: The bill was introduced on February 12, 2025, and has been referred to the House Revenue Committee for further consideration.
Timeline: The bill's progress will depend on the legislative calendar and the committee's schedule for hearings and discussions.
House Bill 2036 represents a significant shift in how municipalities can tax projects funded by government programs. By exempting these projects from B&O taxes, the bill aims to foster economic growth and development in West Virginia, while also ensuring that public funds are utilized effectively without additional local tax burdens. As the bill moves through the legislative process, its implications for local governance and business operations will be closely monitored.
Compiled from official sources — confirm details with the bill’s official record.
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