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Sunday, May 19, 2013 | 1:43 a.m.

Posted: 5:11 p.m. Thursday, Sept. 20, 2012

Hancock Co. down more than $500,000 in missing hotel/motel tax revenue collections

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By Briona Arradondo and  NEWS9

HANCOCK COUNTY, W.Va. —

Hancock County is down more than a $500,000 in revenue since 2008 because hotels and motels weren't charging guests and occupancy tax.

County commissioners discovered the issue about six weeks ago and are now determining what steps to take next.

Commissioner Mike Swartzmiller said some hotels and motels aren't charging a 6 percent tax to guests.

"There are hotels, motels in our area that give away hotel rooms to patrons free of charge. … The state code clearly states that even if it's money or compensation or credits, that tax should be collected and it has not been collected in the last four years," he said

Mountaineer Casino, Racetrack & Resort is accused of contributing the most to the collection problem.

"Mountaineer is, and will remain, compliant with all federal, state, and local tax requirements," Mountaineer General Manager Chris Kern said in a statement. "Regarding the current issue of taxing complimentary rooms, we have sought and received an advisory opinion from the Department of Revenue that supports our current practice. Neither reason nor existing tax law compel us to charge a tax for free services."

The county is out of about $530,000,and Swartzmiller said commissioners have several options moving forward.

"(We could) pass our own ordinance above and beyond the state ordinance, or to clarify the state ordinance. Or we could simply go after the uncollected tax, like if you didn't pay your tax, we're coming after you," he said.

Next, Swartzmiller said officials will talk to different entities and gather different opinions.

"We want to make the right decision on behalf of the taxpayers of Hancock County," he said.

Stay with NEWS9, WTOV9.com and WTOV9 Mobile for continuing coverage.

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