James, 042419 WVAGO, AGO 042419
Case Date | April 24, 2019 |
Court | West Virginia |
1) Is it necessary for the organizers of a temporary gathering or event, where admission is charged and other commercial transactions occur, to obtain a business license?
2) What licenses or permits are required for food or merchandise vendors operating at such an event?
3) Can the spectators of, or participants in, a drag race legally place a wager on the outcome of that race?The answers to the first two questions are straightforward: West Virginia law requires persons or entities engaged in the sale of goods or services for profit to obtain a West Virginia business license and further requires a business that sells food for public consumption to have (and display upon request) the appropriate permit concerning food safety. The answer to the third question is context-dependent. Generally speaking, wagering on automobile racing is regulated under recently enacted sports wagering legislation. Under this statutory scheme, it would be unlawful for the organizers of an event like the one you describe to facilitate wagering or accept bets without a license from the State Lottery Commission. Nevertheless, spontaneous, spectator-driven wagering likely falls outside the scope of the sports wagering statute. Discussion Question 1: Licensing For Event Organizers With limited exception, any person or entity who wishes to lawfully conduct business in West Virginia must obtain a license—a “business registration certificate”—from the State Tax Commissioner. The statutory scheme that imposes this licensure requirement reads, in pertinent part, as follows: “Registration required. -- No person shall, without a business registration certificate, engage in or prosecute, in the State of West Virginia, any business activity without first obtaining a business registration certificate from the Tax Commissioner of the State of West Virginia.” W.Va. Code § 11-12-3(a); see also id. § 11-12-4(a) (“Except as otherwise provided in this article, a person shall register with the tax commissioner prior to engaging in or prosecuting any business activity in this state.”); W.Va. State Tax Dep’t, Business Registration, https://tax. wv.gov/Business/BusinessRegistration/Pages/BusinessRegistration.aspx (“Before engaging in business activity in West Virginia, every individual or business entity must obtain a West Virginia business registration certificate from the State Tax Department.”). “Person” is broadly defined for purposes of this statute to include both natural persons and legal associations: The term refers to “any individual, firm, partnership, joint venture, association, corporation, estate, trust, business trust, receiver, syndicate, club, society, or other group or combination acting as a unit, or body politic or political subdivision (whether public or private, or quasi-public), and in the plural as well as the singular.” W.Va. Code § 11-12-2(5). Because the organizers of last year’s drag racing event plainly fall within one or more of these categories, they are “persons” under the statute, and thus required to obtain a business registration certificate before engaging in “any business activity.” “Business activity” is also defined expansively. It encompasses:
all purposeful revenue-generating...
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