Knowledge Base

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 Charleston. 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 Charleston. Persons domiciled in and having a place of business in 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. 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 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. Construction or Installation Contracts in the City of Charleston: When the business involves a construction or installation contract in Charleston, no deduction from the measure of the tax is permitted, even though the contractor is domiciled outside the city, 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 Charleston, the tax does not apply to any part of the income derived therefrom, even though the contractor is domiciled in the city, 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 Charleston. If the taxpayer has only one office location, and this office is located within 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.