761.07.1 TAX IMPOSED.
Upon every person engaging or continuing within this City in the business of contracting, the rate of tax on gross income is re-established at two dollars ($2.00) per one hundred dollars ($100.00) of the gross income of the business.
761.07.2 RESIDENTIAL DEVELOPMENT TAX CREDIT.
(a) Purpose: In order to encourage relocation and thereby increase population, provide for new modern housing stock, and diversify the City's economy in an effort to avoid the boom/bust economy associated with its former manufacturing and industrial base, among others, there is hereby provided a credit from the tax imposed by Section 761.07.1 for the development of new owner occupied dwelling units within this City.
(b) Definitions: When used in this section:
(1) "Taxpayer" means any person, natural individual, firm, corporation, limited liability company, partnership, limited partnership, or any other legal entity liable for the tax exercising the privilege taxable under Section 761.07.1 of this Article and who is also the developer and/or a wholly owned subsidiary of the developer or for whom the developer owns 100% of the interests of said taxpayer, whether as, including but not limited to, a stockholder, an individual, a member, a managing member, a partner, a limited partner, or otherwise.
(2) "Developer" means the legal title holder of 100% of the legal interests, as evidenced by a deed or other instrument of record in the Office of the Clerk of the County Commission of Marion County, West Virginia, of the land or real estate situate in the proposed residential development. A holder of an equitable interest in the land or real estate in the proposed residential development fails to satisfy the requirement or meet the definition of a developer for purposes of Section 761.07.
(3) "Owner occupied" means that one of the permanent full-time residents of the dwelling unit holds the legal title to the dwelling unit.
(4) "Dwelling Unit" means and is limited to one- or single-family dwelling; condominium, duplex, and townhouse, as those terms are defined by the City of Fairmont Planning and Zoning Code.
(5) "Residential Development" means the construction of dwelling units within a subdivision of real estate that meets all of the requirements and conditions of Article 6.0 Development Procedures, Article 7.0 Subdivision Regulations, 3.1.12 Planned Development Area and/or otherwise satisfies all of the rules and regulations of the City of Fairmont Planning and Zoning Code, and has been approved by the City of Fairmont Planning Commission, and which subdivision otherwise satisfies all other rules and regulations and ordinances of the City of Fairmont.
(6) Any other term used in Section 761.07 shall have the same meaning as when used in comparable context in the Fairmont City Code unless a different meaning is clearly required by the context or by definition in this section.
(c) Amount of Credit Allowed: There shall be allowed to taxpayers a credit against the business and occupation tax imposed by this Article for the development of new owner occupied dwelling units within a residential development. The allowable credit will be measured by the number of new dwelling units constructed within the residential development.
(1) Prerequisite. The following prerequisites must be met before a credit will be allowed: The taxpayer must apply for the credit on forms provided by the Collector together with all necessary documentation to support the credit and to permit the Collector to make a determination that all prerequisites have been satisfied; The taxpayer must be current in the payment of all municipal fees, charges, and taxes; The taxpayer must demonstrate that all necessary permits and licenses have been issued and are current.
(2) Amount of the Credit. The amount of the credit will be a set percentage of the taxpayer's total City tax obligation under this article provided that the total credits allowed, however, for a single year or cumulatively, shall not exceed the total cost of the taxpayer's tax obligation resulting exclusively from the tax imposed from the business of constructing new dwelling units within the residential development.
Credit excess of tax liability in one estimate period may be applied to the tax liabilities in other estimate periods in the same taxable year. The life or length of the credit and the percentage of credit received by the taxpayer or allowable is based on the number of dwelling units constructed as hereinafter set forth and provided by susbection (c)(3) Measuring of Credit of this article.
The allowable tax credit year(s) are calculated upon the business's operational year(s), beginning with the first taxable period after the commencement of construction. It is possible for two tax credits to run concurrently; however, any credit in excess of the tax liability is not refundable and cannot be carried over into the next tax year.
(3) Measuring the Credit. The length of time that the credit is to be allowed and the percentages of the credit and therefore the total credit allowable is to be measured by the minimum number of new dwelling units constructed within the residential development in the corporate city limits. As set forth below, the period of years and percentages for which a credit will be allowed is directly related to the minimum number of said dwelling units constructed and completed by the taxpayer and for which a certificate of occupancy has been issued by the Building Inspector.
DWELLING UNITS COMPLETED PERIOD OF B&O TAX CREDIT % OF CREDIT
Minimum 10 | 1 year | 100% |
11-20 | 2 years | Year 1 100% Year 2 100% |
21-50 | 4 years | Year 1 100% Year 2 100% Years 3-4 50% |
51-99 | 5 years | Year 1 100% Year 2 100% Year 3 100% Years 4-5 50% |
100 and over | 10 years | Year 1 100% Year 2 100% Year 3 100% Year 4 100% Year 5 75% Year 6 50% Year 7 40% Year 8 30% Year 9 20% Year 10 10% |
(4) Forfeiture of Credit: If the taxpayer fails to obtain a certificate of occupancy for the number of units so as to entitle the taxpayer to any such credit, such credit shall be forfeited for the estimate period in which such event occurs and all ensuing estimate periods, unless and until such taxpayer satisfies all the pre-requisites for such credit.
761.07.3 MISCELLANEOUS PROVISIONS:
(a) Administration: The credit provided for by this section shall be administered in accordance with the general administration of Article 761, as provided by Section 761.28 of this code.
(b) Savings: Nothing in Section 761.07 shall be construed to affect any tax credit, suit or proceeding in any court, or right acquired or liability incurred, or any cause or causes under any act or ordinance repealed, nor shall any just or legal right or remedy of any character be lost, impaired by such repeal and to that extent the provisions repealed shall be saved.
(c) Severability: If any section, sentence, clause, section or phrase of this ordinance shall be declared invalid or rendered inoperable for any reasons whatsoever, such invalidity or inoperability shall not affect the remaining portions of Section 761.07 which shall continue in full force and effect, and to this end the provisions of this ordinance are hereby declared to be severable.
(Ord. 1889. Passed 5-11-21.)