Senate Bill No. 178
(By Senators Tomblin, Mr. President, and Caruth,
By Request of the Executive)
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[Introduced January 23, 2007; referred to the Committee on
Government Organization; and then to the Committee on Finance.]
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A BILL to amend and reenact §7-18-2 of the Code of West Virginia,
1931, as amended, relating to hotel occupancy tax; and
increasing the rate of hotel occupancy tax imposed by counties
to not more than six percent.
Be it enacted by the Legislature of West Virginia:
That §7-18-2 of the Code of West Virginia, 1931, as amended,
be amended and reenacted to read as follows:
ARTICLE 18. HOTEL OCCUPANCY TAX.
§7-18-2. Rate of tax.
(a) The rate of tax imposed shall be three percent of the
consideration paid for the use or occupancy of a hotel room.
(b) Provided: That On and after the first day of July, two
thousand five, a municipality may by ordinance increase the rate of
tax imposed in this section to not more than six percent of the
consideration paid for the use or occupancy of a hotel room:
Provided, however, That notwithstanding any other provision of this
article to the contrary, a municipality may not impose any tax
authorized by this article on a hotel located within its corporate
limits upon which a county was imposing a tax authorized by this
article on or after the first day of January, two thousand five,
and continuously thereafter to and including the effective date of
annexation of the territory in which the hotel is located pursuant
to article six, chapter eight of this code and as to that hotel,
the county is authorized to continue to impose and collect the tax
authorized by this article at the rate of
three not more than six
percent of the consideration paid for the use or occupancy of a
hotel room:
Provided, further however, That in the event the
county commission duly enters an order of record that ceases to
impose the tax authorized by this article on that hotel, then, as
to that hotel, the municipality in which the hotel is located by
reason of the annexation may impose the tax authorized by this
article. Prior to the second reading of an ordinance proposed by
a municipality to increase the rate of tax, the municipality shall
conduct a properly noticed public hearing on the issue.
(c) On and after the first day of July, two thousand seven, a
county may by ordinance increase the rate of tax imposed in this
section to not more than six percent of the consideration paid for
the use or occupancy of a hotel room. At least ten days prior to
the final vote of a county commission on an ordinance proposed by a county commission to increase the rate of tax, the county
commission shall conduct a properly noticed public hearing on the
issue.
(d) The consideration paid for the use or occupancy of a hotel
room shall not include the amount of tax imposed on the transaction
under article fifteen, chapter eleven of this code or charges for
meals, valet service, room service, telephone service or other
charges or consideration not paid for use or occupancy of a hotel
room.
NOTE: The purpose of this bill is to authorize counties to
increase the hotel occupancy tax to no more than six percent.
Strike-throughs indicate language that would be stricken from
the present law, and underscoring indicates new language that would
be added.