HB5065 amends West Virginia’s hotel occupancy tax law to address how taxes are collected and remitted when lodging is sold through a marketplace facilitator. The bill makes marketplace facilitators responsible for collecting and remitting municipal or county hotel occupancy taxes when they meet specified economic nexus thresholds: either $100,000 in West Virginia sales in a year or 200 or more separate transactions in a year. It also treats qualifying marketplace facilitators as agents of the hotel or lodging operator for these purposes.
The bill adds detailed recordkeeping requirements for marketplace facilitators, including the name and address of the lodging provider, the dates of occupancy, the amount and date of tax received, and whether the tax is municipal or county. It further requires facilitators to use geofencing or a similar mechanism to improve the accuracy of tax collection and to use a nine-digit ZIP code when needed to ensure taxes are remitted to the correct political subdivision. The bill also clarifies that collected taxes are held in trust until remitted and specifies the proper local official to receive county and municipal convention and visitors bureau lodging taxes.
Impact
The bill updates §7-18-4 of the West Virginia Code and expands the compliance obligations of marketplace facilitators that sell or facilitate hotel, motel, short-term rental, or vacation rental stays. It shifts more of the administrative burden for local lodging tax collection onto digital platforms and other intermediaries, while preserving the underlying obligation of the consumer to pay the tax and the local government’s right to receive it. The measure is intended to improve accuracy in local tax remittance and reduce misallocation among counties and municipalities, especially where lodging is booked through online platforms.
Sentiment
The bill appears to have broad bipartisan support and moved through both chambers with overwhelming margins. It passed the House 91-2, the Senate 32-0, and the House again 90-4 after the Senate amended the title, suggesting general agreement with the policy goal of tightening lodging tax collection and clarifying responsibilities for marketplace facilitators. The lack of committee transcript material limits insight into detailed debate, but the voting history indicates the bill was generally well received.
Contention
No major public contention is evident in the available record, but the bill’s most likely points of concern are the new compliance duties imposed on marketplace facilitators, including geofencing, enhanced recordkeeping, and use of nine-digit ZIP codes. Those requirements may raise implementation and administrative-cost questions for online travel platforms and lodging intermediaries, while local governments and taxing authorities are likely to support them because they improve the accuracy and reliability of tax collection and remittance.
Use tax: definitions; definition of marketplace facilitators; expand. Amends secs. 5 & 5c of 1937 PA 94 (MCL 205.95 & 205.95c). TIE BAR WITH: HB 5140'25, HB 5138'25