Municipal Sales and Use Tax Effective July 1, 2017
Effective July 1, 2017 the Corporation of Shepherdstown will begin imposing a local Municipal Sales and Use tax at the rate of 1%. The new effective rate is the State sales tax rate of 6% plus the municipality’s tax rate of 1% for a total tax rate of 7%. This local tax is one of the ordinance changes coming out of our Home Rule initiative, the readings for which were on June 14 and 28, 2016. Martinsburg, Ranson and Charles Town have already implemented a similar tax. The Town will be holding an informational meeting at the Shepherdstown Community Club on Tuesday, June 13, 2017 at 6:30 p.m. with a representative from the WV State Tax Department present to answer questions. The Municipal Sales and Use Tax will be imposed on all taxable sales of tangible personal property and services within the corporate limits of the Corporation of Shepherdstown for which your business currently pays a States sales tax of 6%. Businesses will be required to report and remit the Municipal sale and use tax on the same form in which they use to report their Sales tax. • If filing electronically, your business will need to complete Schedule M of the West Virginia Sales and Use Tax Return Form. • If filing hardcopy using Form WV/CST-200CU, your business will need to complete either Part III (Municipal Sales Tax) for Part IV (Municipal Use Tax). In both instances the Municipal taxes is added to the State taxes for a single amount due by your business. The State collects Municipal taxes on behalf of the Corporation of Shepherdstown.
Do not charge local sales tax on sales of taxable items when:
• Your customer gives you a fully completed Certificate of Exemption for state sales tax
• You ship or deliver the items to your customer outside the local area
• You sell direct-to-home satellite (DBS) services.
These services are subject to state sales taxes, but not local sales taxes. (This is a federal preemption from the Telecommunications Act of 1996.) Federal government, state and local agencies often are exempt from State and Municipal sales and use taxes, but in situations where they are exempt, they must claim the exemption by presenting a properly-executed exemption certificate. (See TSD-300 Sales and Use Tax Exemptions). Additional information concerning the West Virginia State Tax Department's Municipal Sales and Use Tax is available on their website at www.wva.state.wv.us/wvtax/. Or by calling their office (Mon – Fri from 8:00am – 5:00pm) at (304) 558-3333 or 1-800-982-8297.
For general questions, you may contact the Shepherdstown Town Clerk, Amy Boyd, at (304) 876-2398.