A tax loophole in West Virginia on hotels and motels, designed to benefit politicians, has had an unintended consequence: It’s now benefiting the Marcellus Shale drilling industry.
In 1975 the West Virginia legislature passed a law allowing local municipalities the option of charging up to a 3% tax on hotel and motel rooms. In 2005, they raised it to 6%. However, the politicians included an exemption: No tax on hotel and motel stays of over 30 days.
