B&O Tax Reform

HB 4380 clarifies West Virginia's business and occupation (B&O) tax rules by requiring businesses to pay taxes to each municipality where they maintain a permanent physical presence, based on revenue generated at each location. Businesses without a permanent address in a municipality or performing temporary work (e.g., one-time jobs) are exempt from paying taxes there. For revenue earned outside municipal boundaries (like in unincorporated areas), taxes are paid to the business’s primary municipality, and businesses with multiple locations must prorate revenue earned outside municipal boundaries using a consistent, auditable method. The bill also eliminates county-level B&O taxes for businesses operating solely in unincorporated areas.