(a) Definitions. The following shall apply to this article and section only:
(1) New business: New business shall be deemed as any new commercial, wholesale, retail, manufacturing, or service entity which shall physically locate its principal place of business within the corporate limits of the City of Martinsburg, or an existing commercial, wholesale, retail, manufacturing, or service entity whose principal place of business is located outside the corporate limits of the City and has relocated its principal place of business within the corporate limits of the City of Martinsburg, either by purchase of real property or by virtue of a lease of five (5) years or more duration, and which is subject to the City's business and occupation tax. New business shall also include existing commercial entities which are brought within the corporate limits of the City by way of annexation or minor boundary adjustment. Provided, New business shall also include a restaurant or food-service establishment whose business activity included operation as a food truck or a food hall tenant subject to the City's business and occupation tax immediately prior to obtaining a permanent location within the City of Martinsburg.
A. No commercial entity which has conducted business within the corporate limits of the City currently or in the past, and which changes its name and changes its business structure shall be considered as a new business under this section, unless prior written approval has been given by the City Manager.
B. Additionally, the acquisition and continued operation of an existing commercial entity by another entity subject to the business and occupation tax of the City, whether such acquisition is by purchase or lease, shall not be considered a new business.
(2) Property: Property shall mean real property and improvements thereto, but only if such property was purchased or leased for use as a component part of an ongoing business operation located within the City.
(4) "Food hall" means a form of business containing multiple food-service establishments operating as tenants with shared operations, marketing, and physical space.
(5) “Food truck" means a business with a primary function of operating a food preparation business using an industrial truck, van, or trailer to prepare food and meals for sale at various locations within the state while utilizing a propane or electric generator power.
(b) Amount of Tax Credit.
(1) For new businesses within the corporate limits of the City the business entity will be allowed a:
A. Seventy five-percent (75%) credit against the business and occupation tax liability annually for the first year from the date the entity qualifies for the tax credit;
B. Fifty percent (50%) credit against the business and occupation tax liability annually for the second year from the date the entity qualifies for the tax credit;
C. Twenty-five percent (25%) credit against the business and occupation tax liability annually for the third year from the date the entity qualifies for the tax credit;
(2) The maximum tax credit allowed for any new business that qualifies for the tax credit shall be three-hundred-thousand dollars ($300,000)
(3) The credit may only be taken when an otherwise qualifying business files the required business and occupation tax return on or before the required due date. If the return is not filed timely then the credit will be disallowed for the time period in which the return is delinquent.
(4) A food truck or food hall tenant, as defined in subsection (a) that establishes a restaurant or food-service establishment, and whose business activity included operation as a food truck or food hall tenant immediately prior to obtaining a permanent location within the City of Martinsburg shall be reset for purposes of the new business tax credit, beginning anew in year one.
(Ord. 2023-2. Passed 4-13-23.)
(c) Administration and Enforcement of this Section.
(1) The administration of this section is vested in, and shall be exercised by, the Finance Director of the City, who in connection therewith shall prescribe all necessary forms and returns. The Finance Director will promulgate all necessary rules and regulations that are necessary for the making of returns, and for the enforcement of this section.
(2) The Finance Director is hereby authorized to make any necessary determinations regarding forfeiture, qualification, or carryover of the tax credit authorized by this section, and, may determine that a particular tax credit application violates the spirit and intention of this section and deny the credit on that basis.
(d) Severability. If this section or any portion thereof, or the application of this section in any circumstance is held unconstitutional or invalid, such unconstitutionality or invalidity shall not affect other sections of this chapter, and to this end each and every section, subsection, provision, clause, and phrase of this section is declared to be severable.
(e) Effective Date. This section shall be effective June 1, 2009.
(Ord. 2009-02. Passed 4-21-09.)