Recycling company seeks more time in looming tax deadline

CHARLESTON – A recycling company is requesting more time to fight a tax issued against it by the City of Charleston.

D&M Recycling filed a lawsuit Aug. 22 in Kanawha Circuit Court against the City of Charleston.

In its complaint, D&M alleges the city prepared and submitted a jeopardy tax assessment to D&M. In the assessment, the city informed D&M that it owed $194,588.32 for unpaid business and occupation taxes, according to the complaint.

"The city collector submitted the jeopardy tax assessment to D&M Recycling for the alleged failure of D&M Recycling to submit certain financial records for the approximately 10-year audit period," the suit states.

D&M fought the finding, but was ordered to either pay the tax or to produce the originally requested documents by Aug. 30, the complaint says.

D&M says that it should not owe the tax.

In its complaint, D&M seeks declaratory relief stating that it does not conduct business in Charleston, that a sufficient nexus does not exist between business activities of D&M Recycling and the B&O tax and that the B&O tax is not fairly related to services provided by Charleston.

The recycling company also seeks a temporary restraining order and a permanent injunction that would prevent the city from enforcing its Aug. 30 deadline and that would force the city to wait until the liability case can be fully litigated.

James R. Sheatsley of Gorman, Sheatsley & Co. in Beckley will be represent D&M.

Circuit Judge Tod J. Kaufman has been assigned to the case.

Kanawha Circuit Court case number 14-C-1519