(a) “Shared Services” as defined in this section is a form of management information services which means, and is limited to, data processing, data storage, data recovery and backup, programming recovery and backup, inbound call centers, computation and computer processing, computer programming, electronic information, and data management activities, or any combination of such activities, when such activity or activities is not subject to regulation by the West Virginia Public Service Commission and such activity or activities are for the purpose of managing, planning for, organizing or operating, an industrial or commercial business, whether such industrial or commercial business or enterprise, facility or facilities of an industrial or commercial business is located within or without this City and without regard to whether such industrial or commercial business is owned by the provider of the Shared Services or by a “related person,” as defined in Section 267(b) of the Internal Revenue Code of 1986, as amended.
(b) The tax category is to be for services which are performed by one business for other entities. It is not meant to cover the ‘in house’ support services of the business itself. The tax is to be applicable to businesses whose primary line of business or the primary type conducted is ‘Shared Services.’ If a business purports to fit within the category at least fifty (50%) or more of the business’ gross income must be attributable to the Shared Services aspect.
(c) The tax category is not applicable to: (1) commercial sales or communications or solicitations by telephone calls’ (2) legal services; (3)licensed accountants and licensed accounting firms, certified and/or public accountants and firms; (4) marketing enterprises; and/or (5) outbound call centers.
(d) Any person desiring to be an Approved Shared Services Taxpayer shall make application to the City Finance Director of Wheeling on or before each fiscal year, or upon such later date during a fiscal year that such person first commences Shared Services within the City. No person shall qualify for treatment as an Approved Shared Services Taxpayer prior to approval by the Finance Director of a timely application filed pursuant to this Section 787.54. Failure to timely apply shall render ineligible any party later claiming to qualify for treatment as an Approved Shared Services Taxpayer for such period wherein no application was timely received and filed.
(e) Notwithstanding any provision in this article to the contrary, the rate of tax imposed by this article shall be fifteen cents ($.15) per one hundred dollars ($100.00) of gross income from Shared Services rendered by each Approved Shared Services Taxpayer and such gross income shall not be otherwise taxed pursuant to any other provision of this article.
(f) To obtain the benefit of the Approved Shared Services Tax classification set forth herein, the City Finance Director shall have full authority and discretion to grant or deny an application made pursuant to this section in his discretion considering the standards, definitions and purposes set forth in this Section 787.54. If the City Finance Director denies an application pursuant to this Section 787.54, the person filing such application shall, fifteen (15) days from notice of such denial, file a petition for the City Finance Director to such denial. The City Finance Director shall conduct a hearing concerning petition within ninety (90) days and shall thereafter render a final order concerning the petition. An aggrieved applicant may appeal an adverse final order to the Circuit Court of Ohio County by filing a petition with the Circuit Court within sixty (60) days after notice of the final order. Failure to timely file a petition concerning a denial or a final order, as the case may be, shall render such denial or final order final and not subject to any further administrative of judicial relief.
(g) Administration.
(1) The powers granted to the City Finance Director pursuant to this Section 787.54 are in addition to all other powers granted the City Finance Director in this Article. The administration of Section 787.54, Shared Services Taxpayer, is vested in and shall be exercised by the Finance Director who, in connection therewith, shall prescribe all necessary forms.
(2) The Finance Director may prescribe necessary rules, regulations and procedures that are in conformity with Section 787.54 for administration of the Shared Services Taxpayer provisions.
(3) The Finance Director may conduct an annual audit of each business approved as a Shared Services Taxpayer to determine the continued eligibility of the taxpayer and to certify that the provisions provided in this Section 787.54, including without limitation, job levels and required investment amounts are met and sustained for the taxable period.
(4) All businesses requesting to be eligible as a Shared Services Taxpayer and those granted such status hereunder shall agree to make all their financial records available for inspection and audit by the City Finance Director and shall provide copies of all annual audited financial statements and tax returns.
(5) The amount reported by any Shared Services Taxpayer may be reviewed annually by the Finance Director to verify information and to determine continued eligibility of the business. The procedure for verification of information will be developed as needed by the Finance Director.
(6) All businesses declared to be a Shared Services Taxpayer hereunder must file a quarterly B&O Tax return, report gross income to the City and are subject to all of the laws contained in the City’s Business and Occupation Taxation Code and abide by all local, state and federal laws pertaining to such business and licensure.
(7) Should a business begin to assert placement into the Shared Services Tax category after the fiscal year has begun then the ability to claim that a business is subject to a levy amount as a Shared Services Taxpayer shall be prorated through such time as the application is made and accepted and thereafter shall be so taxed beginning with the future quarter within the taxable year after the adoption of this Section 787.54 in 2006.
(8) There is no retroactivity to be applied to a taxpayer claiming to be a Shared Services Taxpayer and no retroactive calculations shall be made on any taxes paid prior to the adoption of this Section 787.54. Therefore the section concerning “Limitations on Claims for Refunds or Credits” shall not apply for any taxpayer attempting to claim a retroactive recalculation under this Shared Services Tax category.
(h) Required Job Creation for Shared Services Taxpayer.
(1) Any Shared Services Taxpayer as defined in Section 787.54 which, after the adoption of this section, creates or increases its full-time average yearly work force of or by twenty (20) persons over base year employment, shall be eligible as Shared Services Taxpayer if all other requirements of this section are also met.
“Base year employment’ means the average employment within the City, which the Shared Services business utilizes to conduct activity taxable under Section 787.54 during the twelve-month period immediately preceding first application for this credit.
(2) In order for a Shared Services business to qualify for this credit, the full- time jobs created shall be located within the City and shall be utilized in the business’ Shared Services activity. In addition, if the number of qualifying jobs decreases so that the employment level drops below the “base year employment” of full-time jobs or at a minimum twenty (20) full-time jobs, then the ability to claim eligibility as a Shared Services Taxpayer shall be lost.
(3) In addition to full-time job creation and retention, any Shared Services Taxpayer must also provide financial documentation and verification of capitol investments and/or improvements in the business property utilized for the Shared Services business, which must be located within the City and which investment shall not be less than One Million Dollars ($1,000,000.00).
(4) The City Council’s Finance Committee may request that the City Finance Director annually submit a summary report to Council on applications for Shared Services Taxpayers which were approved, render an opinion as to whether or not the continuation of such a Shared Services category is financially sound for the City’s budget and solvency and make any recommendations concerning the continuation of the category or any needed modifications thereto.
(i) No Overlap Provision. Taxpayers must make a choice at the beginning of the tax year or at the start of business as to the classification as a Shared Services Taxpayer or claim tax credits, yet a taxpayer cannot claim both. Taxpayers have a choice concerning their eligibility as a taxpayer in the Shared Services Category found in Section 787.54
and the tax credit that may be claimed under the provisions of this article. The tax credit sections contained in this Article being Sections 787.26
through 787.30
Industrial Expansion Credit; Sections 787.31
through 787.35
Industrial Revitalization Credit; Sections 787.40
through 787.42
Employment Credit; Section 787.53
Downtown Business District Enhancement Tax Credit; Management Information Service Taxpayer Credit Sections 787.46
through 787.52
; and the categorization as a Shared Services Taxpayer found in Section 787.54
are mutually exclusive. Any taxpayer may assert a credit pursuant to one of the taxpayer credit sections as enumerated above within this paragraph but may not assert such credits under more than one section and may not also assert that they are eligible in the tax category of Shared Services Taxpayer. For example, a taxpayer asserting an Industrial Revitalization Credit may not also assert a Downtown Business District Enhancement Credit, nor may a Management Information Services Taxpayer assert eligibility as a Shared Services Taxpayer. The taxpayer’s election as to which credit will be asserted shall be binding upon the taxpayer.
(Ord. 13323. Passed 9-16-06.)