LOGAN — During its regular session Tuesday, Feb. 9, the Logan City Council agreed to contract with DataMax Corporation for the collection of business and occupation taxes from out-of-area firms that do business within the city limits.
“We’re like a back office to what you do here, we follow your ordinances,” said Bobby Monroe, vice president of sales for DataMax.
Monroe said that DataMax’s collection efforts would not impact any of Logan’s hometown businesses.
“What we do is we identify, every month, 10 to 30 businesses that are coming into Logan and not paying their fair share of B&O taxes,” Monroe said. “Your brick and mortar (businesses) that are here will never hear about DataMax.”
After getting a list of the companies already paying business and occupation taxes to Logan, DataMax is able to contact others that likely are.
“Once we get that list, we will contact the companies that we know are coming in here, because we already have relationships with about 98-99% of those,” Monroe said.
He gave an example of a couple of companies that operate within every Walmart that don’t normally pay B&O taxes until they are contacted.
“We’ll call them up, they’ll say, ‘Where are you guys now?’ — we’ll say ‘Logan, West Virginia,’ they’ll say ‘Calculate the fees, tell us what we owe,’ ” Monroe said.
After collecting B&O taxes from companies brought into compliance through the collection efforts of DataMax, the city then splits the new revenue with the company.
“Our revenue share is a 50-50 split — right now you’re getting zero,” Monroe said.
After a given business has been paying B&O taxes for two years, all of the following tax revenue from that business from will stay with the city.
Council member Ken Lee said, “It’s really a no-brainer. We’re getting a 100% of nothing, vs. 50% of something.”
DataMax, is based in Winston-Salem, North Carolina, and already has contracts with more than 40 West Virginia municipalities.