CHARLESTON, W.Va. — The city of South Charleston will impose a 0.5 percent increase in the city’s sales tax raising the tax up to 1 percent for all city residents by next year.
“That’ll generate approximately $4.3 million in additional revenue,” City Attorney Michael Moore told MetroNews following an approval made by the state Municipal Home Rule Board during a Monday meeting at the state Capitol.
The board also approved a one percent sales tax increase for the city of Bridgeport. In addition, programs for Elkins and Harpers Ferry were accepted, so the two cities could join the 26 that have already been granted Home Rule status.
Moore presented South Charleston’s plan that he said would resolve some inequities in the city.
“We think that taking that money and putting it back into the community for improved infrastructure, helping the unfunded pension, as well as some of the city employee costs will benefit the residents as a whole,” he said. It could also go toward renovations at the community center.
The plan also includes an annual reduction of $366,263 in the city’s business and occupation tax for utilities.
“That’ll be passed on directly to the South Charleston residents,” Moore said.
The sales tax would also benefit residents because about 75 percent of people who shop at South Charleston retail stores are non-residents, Moore said.
“They can bare some of that burden of the services that are provided that the citizens are paying for and once that $4.3 million comes into the general fund, the citizens of South Charleston are going to see a lot of improvements,” he said.
The plan will be submitted to city council for a first reading on Dec. 3 and a second reading on Dec. 17. A final approval could made at the time of the second reading.
If approved, Moore said the tax would be implemented July 1, 2016.