LEWISBURG (WVDN) – At a special meeting of Lewisburg City Council on Tuesday, Nov. 8, the first reading was held for a municipal sales-and-use tax proposed to take effect July 1, 2023.
After requesting Home Rule Board permission, the city will hold second reading, public hearing and vote on Tuesday, Nov. 15, at 7 p.m. in the city council chambers at 942 Washington St. W. in Lewisburg.
The tax has stipulations through the Home Rule program that require certain exemptions, as well as the additional decrease in the B&O tax currently on the books. The B&O tax decrease will create a savings for the high-earning businesses in Lewisburg city limits, primarily by utility companies and possibly Walmart.
There is a $15 million exemption for businesses as the B&O structure currently exists, so only businesses making over that amount are currently paying a B&O tax. The 1% deduction will benefit those businesses.
The home rule requirement for exemptions to the municipal sales tax, expected to be a 1% addition to the current state sales tax, provides for protection to the consumer of any additional taxes on motor vehicles, motor vehicle fuel, prescription drugs, and food for human consumption. Other purchases from Lewisburg city-based businesses will incur this additional sales tax of 1% starting July 1, 2023.
The businesses must be within the Lewisburg city limits and will be known by the state tax commissioner by a report from the city as being under their jurisdiction.
Lewisburg City Treasurer Susan Honaker says, “The figures of how much income potential is going to be achieved by the Lewisburg City budget are not known at this time.”
According to Lewisburg Mayor Beverly White, this is a common practice now in municipalities in order to stabilize their income base. She said, “If we didn’t feel it was right for Lewisburg, we would not be doing it.”
