Kingwood’s 1% sales tax brings in $254,645

KINGWOOD — Kingwood is collecting more than council expected from its municipal sales tax, but routine bill collections are down.

Councilwoman Michelle Whetsell said the town received word this week that its third-quarter receipts from the 1% tax will be $99,325.76. The check covers sales in January through March. It brings the total received the first year the tax has been in effect to $254,645.66.

That blows Whetsell’s estimates that the tax could bring in $106,000-$225,000 out of the water. She researched and proposed the tax to city council.

“I couldn’t believe my eyes when I saw that figure,” Whetsell said in an email. “I was greatly surprised,” agreed Mayor Jean Guillot.

But, the mayor said, “the water, sewer and garbage bills aren’t being paid,” as promptly as pre-COVID-19. So Kingwood has instituted a freeze on non-essential spending.

And while the 1% tax is a nice addition to the town’s budget, which totaled $2.6 million in 2019-20, without the sales tax, council prefers it not be used for operational expenses.

“I want the tax to be used for capital improvements,” Guillot said. “I want to use it for public enhancement, to help businesses. If the community looks better, then more people move in, more people shop here.”

A portion of the 1% tax has been used to replace Kingwood’s 19-year-old street sweeper, and funds are set aside to update playground equipment at Browns Park, for example. It will also be used to replace one of the city police cruisers.

As examples of non-essential spending, Guillot listed planned improvements to the meeting room at city hall and plans to buy shelving for city police.

Fifty-eight West Virginia cities have adopted the tax to date, including Morgantown and Fairmont. Kingwood is the only Preston County municipalities to adopt it.

The tax applies to sales made within the city and on internet sales to people living in Kingwood. It basically applies to the same items and services as the state sales tax. Exempt purchases include prescription drugs, motor fuel, sale or use of motor vehicles and satellite TV service.

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