The tax climate in Morgantown, Monongalia and Preston counties as well as the state all are favorable and conducive to growing business West Virginia.
The state levies a singular tax on business – a Corporation Net Income Tax. This tax structure is imposed annually at 6.5% of federal and taxable income.
The state also levies specific taxes throughout the Mountain State, including:
- Business and Occupation Tax imposed on public utilities, electric power generators and natural gas storage operators.
- Severance Taxes levied on the production of natural resources at 5%.
- Consumers’ Sales and Service Tax and Use Tax levied at 6%.
- Business Registration Tax which is a one-time fee of $30 for each location.
- Personal Income Tax is a graduated scale applied to all taxable income.
Includes property taxes administered by county governments. Businesses pay property tax on furniture, fixtures, equipment, inventory and real estate if a business operates from a brick and mortar location. 60% of appraised value is collected as property tax. Many cities in the region also administer a B&O tax applied as a percentage of gross revenue.
Municipal Sales and Use Tax
|Municipality||Effective Date||Municipal Rate||Combined Rate*|
|Morgantown (Monongalia County)||July 1, 2020||1%||7%|
|Kingwood (Preston County)||July 1, 2019||1%||7%|
Other fees, taxes and licenses may be required depending upon specific industries within which businesses operate. The best way to proceed with opening, positioning or relocating a business within the Morgantown MSA, is to contact the municipal offices that govern the specific community from where the business plans to operate.