July 6, 2020
Montgomery City, WV City Service Fee increases effective July 1, 2020
The Montgomery City Service Fee is increased from $1.00 to $1.50 per calendar week effective July 1, 2020, and to $2.00 per calendar week effective July 1, 2021, under Chapter 14, Article VIII of the Montgomery City Municipal Code.
As previously reported (EY Tax Alert 2019-1693), the City of Montgomery first imposed the City Service Fee effective July 1, 2019. Employers with a place of business located within the city are required to withhold the City Service Fee from the wages of employees working within the city. Employers must submit these withheld fees on either a monthly or quarterly basis, based on the employer's choice. The definition of city employer includes all for-profit and not-for-profit entities and all local, county, state and federal government entities.
City residents who already pay a police and municipal fee, and transient employees (employees who remain in the city for a short period of time and whose principal office is not within the city) are exempt from the city service fee.
Employers must submit a monthly or quarterly list of all employees, including those exempt from the city service fee, showing the employee's name and address, along with exemption code 1 for city residents and exemption code 2 for transient employees. A summary must also be submitted showing the number of employees subject to the service fee, the total payment to be submitted, the number of resident employees not subject to the service fee, the number of transient employees not subject to the service fee, and the total number of all employees.
A summary and remittance form are sent to employers each quarter. The summary form, employee list and payment must be remitted to the City of Montgomery, 706 Third Avenue, Montgomery, WV 25136.
Montgomery employers that have not received forms and instructions from the city, or that have further questions, should call +1 304 442 5181 or send an email to Heather Arthur at Harthur@MontgomeryWV.gov or Angela Tackett at Atackett@MontgomeryWV.gov.
Ernst & Young LLP insights
The City of Montgomery ordinance provides that if the state legislature enacts a law allowing cities to impose a gross wage tax, the city service fee ordinance shall be repealed.
The City of Montgomery joins seven other West Virginia cities that require a City Service Fee be withheld from wages:
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