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Council briefed on state-driven changes to business-license and B&O tax rules for very small operators
Summary
City staff outlined an ordinance to align local business licensing and business-and-occupation tax rules with 2025 state law changes that exempt sole proprietors/independent contractors without a permanent city location and annual gross revenue under $2,500 from local licensing and exempt businesses under $2,500 annual revenue from B&
Morgantown — City staff presented an ordinance May 27 to amend local business-license and business-and-occupation (B&O) tax provisions to implement changes enacted by the West Virginia Legislature this year.
What changed: The 2025 state legislation creates two exemptions: (1) a business-license exemption for a sole proprietor or independent contractor that has no permanent physical location in the municipality and has annual revenue below $2,500, and (2) an exemption from municipal business-and-occupation tax liability for businesses with annual gross revenue below $2,500. The ordinance presented follows the West Virginia Municipal League model language to add these exemptions into the city code and to align municipal tax and licensing deadlines with state rules.
Implementation and timing: The city attorney and staff recommended adopting the ordinance promptly so the changes are in place before the July 1 start of the fiscal year; the administration asked council to move the ordinance to the agenda for formal consideration so it can be enacted effective July 1.
Ending: Councilors asked procedural questions; staff asked council to move the item to the agenda for formal adoption at a subsequent meeting.
