West Virginia enacts law allowing a new local tax on certain sales of goods and services in tourist areas.

Jun 20th, 2013

West Virginia recently enacted a law allowing the creation of Resort Area Districts. These districts may impose a fee on goods and services sold by certain businesses. This law will go into effect on July 12, 2013.

Under the new law, a county commission may create a Resort Area District overseen by a Resort Area Board. The Board may implement, administer, and collect a service fee on certain sales. This fee applies to sales of goods and services by lodging and camping facilities, restaurants, taverns, bars, nightclubs, lounges, retail stores, entertainment facilities, and recreational facilities. This fee may be up to 5% of the price of the goods and services sold.

The Board will use the funds generated by this fee for public improvement projects and the provision of services within the District.