Hotel Tax Loophole in WV Benefits Drillers, Ending Soon?
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.
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Dimock Proud, a group of homeowners in and around Dimock, PA who have banded together to defend their town’s reputation against mainstream media news attacks painting the area as a contaminated wasteland, report that two residents who have been among the most vocal critics against drilling and against Cabot Oil & Gas, Craig and Julie Sautner, have settled their lawsuit with Cabot and have left town.
On Wednesday, a group of 22 State of New York town supervisors, mostly from the Southern Tier area of New York, sent a letter to Gov. Andrew Cuomo strongly encouraging him to release the Dept. of Environmental Conservation’s new drilling rules (called the SGEIS) now. A copy of the letter is embedded below. One of the signatories is Town of Binghamton Supervisor Tim Whitesell, current president of the New York State Association of Towns.