Morgantown Council approves business tax exemptions for sole proprietors and contractors

The Morgantown City Council meeting on June 3, 2025, focused on significant changes to the business and occupation tax provisions affecting local businesses. The council discussed House Bill 2451, which introduces exemptions for certain small businesses from the requirement to obtain a business license and from the business and occupation tax.

Under the new ordinance, sole proprietors and independent contractors without a physical location in Morgantown and earning less than $2,500 annually will no longer need a business license. Additionally, businesses with total revenue below this threshold will be exempt from the business and occupation tax. This change aims to ease the regulatory burden on small operators, such as Uber drivers and mobile vendors, who typically have limited revenue and no fixed business location.

The council emphasized the importance of these changes, which are set to take effect on July 1, 2025, aligning with the new fiscal year. The ordinance was developed with assistance from the West Virginia Municipal League, ensuring that the language and implementation align with existing tax codes.

During the meeting, council members raised questions about the implications of the new regulations. It was clarified that businesses must meet all three criteria—being a sole proprietor or independent contractor, having no physical location, and earning under $2,500—to qualify for the exemptions. If a business exceeds the revenue limit in a subsequent year, it will need to obtain a business license.

The council unanimously approved the ordinance, with a vote of 7-0, marking a significant step in supporting small businesses in Morgantown. The meeting also included discussions on designating authorized agents for financial transactions, indicating ongoing administrative updates within the city government.