MORGANTOWN, W.Va. – The City of Morgantown issued a release on Thursday stating that citizens who were incorrectly charged the new 1% Sales and Use Tax while shopping at businesses located outside city limits are encouraged to seek reimbursement through the State Tax Department.
On July 1, a new sales tax was implemented in Morgantown that added a 1% sales tax to businesses within city limits. City Finance Director James Goff said the tax is expected to bring in $5 million a year in revenue.
The release stated that citizens can seek reimbursement of the municipal sales tax by contacting the State Tax Department at 800-982-8297 or by visiting its website and completing the state tax form CST-240.
The City of Morgantown Finance Department has been working with the State Tax Department to correct discrepancies in the collection of the municipal sales tax, which went into effect on July 1, according to the release. City officials said all municipal sales and use tax are collected by the State Tax Department and distributed to the city. According to the State Tax Department, the city does not receive sales and use tax collected in error by businesses located outside of city limits.
The release stated that one of the primary issues identified by city officials when reviewing the implementation of the sales and use tax is the State’s “zip code plus four” system. According to the release, this system includes businesses and residential dwellings that straddle the city boundary. In these cases, the city did not include these properties in the data it submitted to the State Tax Department, the release stated.
The zip code plus four system also means that any business not located within the city with an official mailing address in city limits, such as a post office box, was included in the data submitted to the State Tax Department, according to the release. City officials said these situations will be addressed as they are identified.
Officials said that any business that has received notice to collect the municipal sales tax or has been charged the municipal sales tax by another business and is not within city limits, should contact the Finance Department at 304-284-7408.