Requirements for Contractors
The City of Fairmont requires the General Contractor and all Subcontractors to follow certain criteria on all construction projects in the City:
- All Contractors are required to pay Business and Occupation Tax at the rate of 2% of the gross contract amount. The City’s Business and Occupation Tax form is available online. A tax form must be filed as long as the contractor maintains a registration to work in the City. A penalty imposed for late filed tax returns at a rate of 0.05% for the first 30 days and an additional 0.01% each successive 30 days is accrued on delinquent returns.
- All General Contractors and Subcontractors must possess a City of Fairmont Business License prior to commencing work. The Contractor Business License fee is $90 each fiscal year from July 1 to June 30. The City’s Business License application is available online.
- All General Contractors and Subcontractors performing total contract job cost in excess of $2,499.99 must possess a West Virginia Contractor’s License obtained through the West Virginia Department of Labor 304-558-7890. A copy of your company’s West Virginia Contractor License must accompany an application for a City of Fairmont Business License.
- The City requires the General Contractor and/or owner to supply General Contractor/Sub-Contractor Report Forms at the start of the project and a final report at the end of the project. These forms provide total contract amounts, dates and amounts of disbursements for the work performed by the General Contractor, as well as the work performed by any Subcontractors they pay directly who are working on the project.
- It is the City’s policy that the Building Inspection/Code Enforcement Department will not schedule a final use and occupancy inspection on properties until the Business & Occupation Tax Manager receives a completed, Final General Contractor/Subcontractor Report.
- Penalties and interruption of work can occur if work begins before a contractor is properly licensed.
- When a subcontractor who is hired by the General Contractor also hires Subcontractors to assist them in their portion of the project, they will be acting as a “general contractor” for that particular phase of the project and will be held to the same requirements as the General Contractor. They must make sure their Subcontractors are licensed with the State and with the City to avoid penalty or interruption of work. The General Contractor should inform any Subcontractors that Business and Occupation Tax applies to all contracts and subcontracts.
On speculative properties, the speculative builders will also be required to possess a West Virginia Contractor’s License and City of Fairmont Business License. Business & Occupation Tax will be paid at the retail rate of 0.39% on the total price of the home at the time of sale and transfer of property. At the time you file a tax return for a speculative build, please note the address and amount of sale on the back of the tax form. All subcontractors will be subject to Business & Occupation Tax at a rate of 2.0%.
Tax and license report forms are available at our website. If you have questions or need assistance, please contact Susan Garrison, Business and Occupation Tax Manager at 304-366-6212, ext. 323, 8:30 a.m. to 4:30 p.m., Monday through Friday.