KINGWOOD — The first two quarters of a new 1% municipal sales tax have garnered the City of Kingwood $155,319.90.
Now the question is: How to spend it?
The city got its first check from the tax, for $56,469.24, in November. The latest check, for $98,850.66, covered October through December collections.
Since this is the first time the tax has been collected, council opted not to list any uses for it in the fiscal year 2019-20 budget, which totals $2.6 million. However, it is going into the general fund and can be used however council decides.
Councilwoman Michelle Whetsell, who brought the idea for the tax to council, estimated receipts from the first year should be $106,000-$225,000.
Mayor Jean Guillot noted there have been discussions from the beginning to use the first year’s receipts to replace the town’s 19-year-old street sweeper.
Guillot said a new sweeper will cost about $240,000. But one company also has a 2016 model it leased out and now has for sale. The used sweeper had regular maintenance by the seller and would cost about $145,000 to $150,000, the mayor said.
He would like to see Kingwood invest some of the taxes in state treasury bonds, which pay 1.86% interest, with no transaction fees and cash withdrawals at any time.
A total of 46 West Virginia municipalities have the tax. In north-central West Virginia, Bridgeport collected $2,147,327.70 this fiscal year; Clarksburg, $2,222,899.49; Fairmont, $1,107,457.58; and Grafton, $299,723.39, according to the State auditor’s website.
Statewide, municipalities collected $42,488,684.24 from the tax this fiscal year.
The tax is on 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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