As I explained last week, the Town of Marlinton is in the process of submitting an application to the State Home Rule Board to become a Municipal Home Rule City. On March 18, we had the third and final reading before sending the application to the State Board for approval.
To those who may be asking “Why Home Rule?” or “Why now?,” I offer the following explanation: Marlinton has a very small residential tax base and, yet, being a remote town on a busy U.S. highway on the way to a resort destination (Snowshoe Mountain), we provide service to a much larger population.
In addition, the Monday Lick Trail was intentionally designed to position Marlinton as a strategic trail town within the Snowshoe Highlands Ride Center. When open, tourism experts believe Monday Lick will draw as many as 16,000 mountain bikers annually to downtown Marlinton. The trail tourism will benefit the local economy and the county at large. What is good for local businesses will come at a cost to the Town. More visitors will mean more services to provide.
At the present time, the Town is only able to generate revenue via taxation by imposing a municipal business and occupation tax or by imposing a sales tax; W.Va. state code creates a legal barrier by requiring the two taxes be mutually exclusive. W.Va. Code §8-13C-1 et seq. contemplates the imposition of a sales tax by municipalities either for pension relief or as an “alternative municipal sales tax” at a rate not to exceed one percent.
However, a municipality may only impose such a sales tax if it eliminates its B&O tax. W.Va. Code §8-13C-4(b). The Town currently imposes a B&O tax on businesses, but the B&O tax is neither a wholly fair tax on some categories, nor does it provide adequate revenue to support community needs.
Under W.Va. Code §8-1-5a(i)(14), municipalities participating in the Municipal Home Rule Program do not have the authority to pass an ordinance under Home Rule pertaining to taxation, except that a participating municipality may enact a mu- nicipal sales tax up to one percent if it reduces or eliminates its municipal B&O tax. However, sales tax alone, without the B&O tax, would exempt certain critical town businesses (banks, insurance, real estate agents) from paying municipal tax.
By becoming a Home Rule city, Marlinton seeks to restructure its business tax structure, “reducing and eliminating some classes” of the Business and Occupation Tax and instituting a 1% sales tax in order to increase revenue, which will be used primarily for public safety operations. This new business tax structure will be fairer and more standardized, and similar to those in adjacent communities. Furthermore, through the 1% (Point of Sale) tax, the 16,000 (or more visitors) per year will help pay for services that will benefit our local residents.
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Taking a moment to remember Mayor Doug Dunbrack, who served the Town of Marlinton for 24 years, and passed away as Mayor, March 16, 2004. Twenty years ago.
