The City of War imposes a Business and Occupation Privilege Tax (B&O) on all persons for the act or privilege of engaging in business activities within the City of War and limits thereof. The term “business” shall include all activities engaged in or caused to be engaged in with the object of gain or economic benefit, either direct or indirect.
All persons engaged in business in the City of War are subject to B&O tax unless specifically exempted by the W.V. state code §11-13-2q and/or W.V. state code §11-13-3.
The amount of tax a business/occupation is subject to pay will depend on the classifications said persons fall under. Different rates are in place for different business activities, the taxpayer is liable for each taxable classification their business/occupation falls under. If you are uncertain as to what your tax rate/classification(s) should be, please contact our office.
Business & Occupation Tax FAQ
Q: Who is subject to B&O?
A: All persons who are engaged in business within city limits of the City of War. This includes persons who do not reside in city limits but lease/rent personal property within the municipality, perform construction/fulfill contracts within the municipality, or render services to others that reside/do business within the City of War area.
Q: My business is registered with the state of WV, do I still have to register with the City of War?
A: Yes. The City of War is a separate entity from the State of West Virginia, this also includes registering for a city business license.
Q: What is gross income?
A: Gross income is the amount, without any deductions, that the taxpayer receives for the business/service they conduct.
Q: When are B&O taxes due?
A: B&O taxes run on a quarterly basis and are due within one month of the quarter end. Penalties will be applied for taxes received after the due date. See the table below for more information:
1st Quarter: January 1st to March 31st – Taxes due no later than April 30th
2nd Quarter: April 1st to June 30th – Taxes due no later than July 31st
3rd Quarter: July 1st to September 30th – Taxes due no later than October 31st
4th Quarter: October 1st to December 31st – Taxes due no later than January 1st
Q: What are the tax rates?
A: The tax rate depends on the classification(s) of your business activity. See the tax table below for more information:
| Classification | Rate Multiplier Per $100.00 |
| Coal (1%) | 0.01 |
| Sand, Gravel, or Other Mineral Products (3%) | 0.03 |
| Natural Gas in Excess of $1250 (6%) | 0.06 |
| Limestone or Sandstone (1.5%) | 0.015 |
| Banking (.75%) | 0.0075 |
| Gross Income – Manufactured Products (.30%) | 0.003 |
| Gross Income – Retailers, Restaurants & Others (.50%) | 0.005 |
| Gross Income – Wholesalers (0.15%) | 0.0015 |
| Street, Interurban, & Electric Railways (1%) | 0.01 |
| Electric Light & Power (4%)(sales and demand charges, domestic purposes and commercial lighting) | 0.04 |
| Water Companies (4%) | 0.04 |
| Electric Light & Power Companies (3%)(all other sales & demand charges) | 0.03 |
| Natural Gas Companies (3%) | 0.03 |
| Other Public Utilities (2%) | 0.02 |
| Contracting (2%) | 0.02 |
| Loan Companies (1%) | 0.01 |
| Amusement (.50%) | 0.005 |
| Service and All Other Business (1%) | 0.01 |
| Rents, Royalties, etc. (1%) | 0.01 |
Q: What is the penalty rate for delinquent taxes?
A: If not paid when due, there will be a 5% penalty for the first 30 days your return is delinquent plus an additional 1% for each additional 30 days after.
Q: What if no income was made during the quarter?
A: If your business/occupation did not make any income during the quarter, you must still file a return and report “0” as your income. There will be a minimum payment amount of $3.00 per quarter, even if your income is zero.
Q: How can I make payments?
A: The City of War accepts debit, credit, cash, and check in the office for all payments. You can also visit cityofwarwv.com to find a payment link for online payments.