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Legislative committees OK bills affecting city business taxes, gun laws

MORGANTOWN — Two bills affecting cities passed out of legislative committees Tuesday morning — one dealing with business fees, one with guns.

House Political Subdivisions approved HB 4602, the business tax bill, in a divided vote.

Current state law allows cities — for businesses within their city limits required to obtain a state license — to also impose a municipal license. And except in cases where a state license tax or fee is imposed, the cities may, instead of requiring a license, impose a tax up to $20.

HB 4602 would eliminate cities’ ability to do both of those.

Delegate Evan Hansen, D-Monongalia, was among the opponents to the bill. He said he talked to Morgantown city attorney about the reason for the tax. He learned that it’s a means for cities to keep track of the businesses inside their boundaries — not least of all so they can levy business and occupation taxes to pay for police and fire services and street maintenance.

“This is how they know,” he said. “That’s really important.” As a business owner himself, the tax — they also called it a fee — the $20 can seem like a nuisance but it’s not that big a deal.

B&O taxes, he said, are one of the cities’ few means available to pay for public safety and street services. Morgantown brings in $10 million-to-$15 million per year in B&O taxes. “This is an important tool for the municipalities.”

Delegate Geoff Foster, R-Putnam, argued for the bill. “This is a tax to collect a tax; that makes no sense to me.” Businesses still need a permit to operate within a city and that’s sufficient.

One supporter noted that Barboursville charges only $5 for the tax, but heaps on a late fee of $500.

The vote was a voice vote and it was unclear who voted for or against it. It goes next to Government Organization. The same bill, as HB 2842, passed out of Political Subdivisions in 2023 but died in Government Organization.

Gun bill

The gun bill is SB 321, approved in a unanimous voice vote by Senate Government Organization.

Its aim is to prevent municipalities from targeting protected (gun-related) businesses with planning and zoning ordinances more restrictive than those placed upon other businesses.

It would forbid a city from closing or limiting the operating hours of a business that sells firearms, firearms components, supplies, ammunition or reloading equipment.

The members adopted an amendment posed by Sen. Jason Barrett, R-Berkeley, to also apply the bill to indoor and outdoor shooting ranges.

Apart from the discussion of the amendment, there was no debate. It goes next to the full Senate.

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