Constitutional Amendment Story Archives - West Virginia Public Broadcasting

Justice Announces Vehicle Tax Refund Bill

This is a developing story and will be updated.

Story updated on Oct 11 at 2:30 p.m.

In a virtual-only announcement Tuesday morning, Gov. Jim Justice said he had a bill ready to present to the West Virginia Legislature: the “Car and All-Vehicle Tax Elimination and Protection of Local Government Act.” The bill will, in essence, do away with the state vehicle tax without amending the constitution.

“Each year, all West Virginians and all West Virginia’s companies, businesses and all West Virginians who own a vehicle would receive a full dollar for dollar refund for personal property taxes paid to the county sheriff’s in 2022,” Justice said.

Justice said getting rid of the state car tax takes away the “bait” of voters passing Amendment 2 on Nov. 8. The amendment would give the legislature the authority to consider reforming property taxes, including the vehicle tax and the business, machinery and inventory tax.

Republican leaders in the West Virginia Senate are campaigning to pass the amendment, urging voters to consider the plan to remove the two property taxes and use surplus revenues to keep county schools and services funded.

Justice has been traveling the state, campaigning against Amendment 2, saying the Senate plan will doom West Virginia counties to financial ruin.

Justice said this act will return approximately $145 million to taxpayers and it applies to this year’s tax.

The bill authorizes a tax credit against the personal income tax, or the corporation net income tax, as applicable, in the amount of ad valorem property tax timely paid during the income tax taxable year on specified motor vehicles. The credit is retroactive to taxable years beginning on and after January 1, 2022.

A Statement from Senate and House Democratic Leaders Regarding Governor’s Tax Relief Proposal reads; Inflation is real. People are hurting now. We fully support eliminating the car tax to help our people. Democrats proposed this idea back in March of 2021. We are glad Governor Justice is with us in eliminating the car tax. Why wait any longer? Let’s do it now. We call on the WVGOP to join us in providing immediate tax relief for the people in a special session.

Preview: W.Va. Property Tax Amendment On November Ballot

A proposed constitutional amendment on the ballot this November will give the West Virginia Legislature authority to remove or reduce a variety of county level property taxes.

West Virginia Public Broadcasting previewed the ballot measure, looking at concerns on how passage would affect the state economy, essential services and its taxpayers.

The proposed amendment provides the legislature with the authority to exempt tangible machinery, equipment and inventory used in business activity – and personal property taxes on motor vehicles from property taxation.

Del. Wayne Clark, R-Jefferson, was a sponsor of House Joint Resolution 3 that put the amendment proposal on the ballot. He said voters need to understand a yes vote does not make any property tax changes, but gives the legislature authority it did not have to consider and propose changes.

“What we do after that, that’s going to be Senate and House Finance Committee Chairman (Eric) Tarr and (Eric) Householder’s process of where we want to look, at what taxes to maybe move or reduce,” Clark said. “I think the county commissioners think, ‘Oh, well, we’re just going in there to take away your money,’ and that’s not true. They don’t understand that the amendment has to be passed, so that the legislature can look at making changes to the tax code.”

Sean O’Leary is the senior policy analyst with the West Virginia Center on Budget and Policy. He said these property tax cuts are something the legislative Republican leadership and caucus has been attempting for years.

“The plan the previous year was they were just going to go ahead and exempt it,” O’Leary said. “But when they couldn’t come up with a way to pay for it, the amendment was tweaked a little bit to say, well, we’ll be allowed to do it. And we’ll figure out something later.”

Both sides agree eliminating the business equipment and inventory tax and the motor vehicle tax could cost schools, local and county governments more than $500 million in lost revenue. Clark said the plan on how to replace those funds will be part of the legislative process.

“I’ve heard several different ideas. And that’s all they are – ideas,” Clark said. “What if we had to raise the food tax? Or what if we had a meal tax? Or what if we increased the hotel-motel tax or something, there’s all kinds of things. People are going to have to really trust in the abilities of Chairman Tarr and Householder and their understanding of what the budget is and trust that they’re going to come up with the best solution. How we’re going to make counties whole, I don’t know. But right now, the main goal is – let’s get this thing passed so we can at least start looking.”

O’Leary said the lost revenue would devastate local and county services and significantly shift decision making power from local to state government.

“These cuts account for 27 percent of total property taxes and that’s the bulk of funding for local governments that really rely heavily on property taxes,” O’Leary said. “In some counties, it’s even greater, up to more than 30 or 40 percent of their total revenue. A lot of this money goes to those excess levies that directly fund libraries, EMS services, fire protection, senior centers. That money is earmarked and if that base is taken away they have to redo all of those excess levees, all of those bond levees to make sure that the revenue is still there.”

Clark said maintaining a machinery and inventory tax puts West Virginia at a competitive disadvantage in recruiting and retaining businesses

“You take a company like Toyota or any auto manufacturer – once that car is made, it’s taxable, it’s inventory. You have an $80,000 car sitting on a lot,” Clark said. “The Green Power bus folks, I have no idea what an electric bus is going to cost to make. Let’s say they make 20 of them and they’re $100,000 each. Well, they’re paying taxes on something that’s not even sold, it’s just sitting there. So yes, it’s going to attract new businesses here. It is a deterrent right now for businesses to move into the area.”

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O’Leary said neighboring Ohio got rid of its manufacturing personal property tax and it did nothing for manufacturing growth in that state. He said West Virginia property taxes are some of the lowest in the country, and the answer is to not make any cuts and use our tax revenues wisely.

“The solution is to take that tax revenue and invest it in ways that make West Virginia attractive and this is exactly what it does,” O’Leary said. “This money goes to schools, this money goes to public safety, this money goes to local infrastructure. We all want those things. Those things attract businesses. So why would we take that away? Why would we take away the resources that are funding the things that make West Virginia attractive?”

Voters will say yes or no to the officially titled “West Virginia Authorize Tax Exemptions for Vehicles and Personal Property Used for Business Amendment” on the election day, November 8, 2022.

W.Va. Delegates Introduce Environmental Constitutional Amendment

Democrats in West Virginia’s House of Delegates Monday proposed an amendment to the state constitution’s Bill of Rights that would specify a clean environment is a constitutional right.

Thirty-two Democratic Delegates cosponsored an Environmental Rights Amendment. House Joint Resolution 25 states that access to clean air and pure water is the right of all West Virginians.

The amendment is modeled after a paragraph that’s been in the Pennsylvania Constitution for decades.

Lawmakers sponsoring the amendment argue a healthy environment is critical to the state’s economy.

“The best way to diversify our state’s economy is to create jobs that also protect the environment,” Delegate Evan Hansen (D-Monongalia), lead sponsor of the resolution, stated in a press release. “We can grow our population and our industrial base while keeping the water we drink and the air we breathe clean.”

In a release, the lawmakers highlight the state’s growing tourism industry and Charleston’s water crisis in 2014, which led to closure of many small businesses, and migration of a portion of the population.

If the resolution passes the state House and Senate, the amendment would be placed on the November 2020 General Election ballot for voters to decide.

Senate Rejects Democrat's Attempt to Modify Abortion Resolution

An amendment that would create exclusions to a resolution that grants no right to an abortion failed Thursday on the West Virginia Senate floor.

Sen. Corey Palumbo, a Democrat, offered an amendment to Senate Joint Resolution 12 that would have created an exception and allowed the right to an abortion in “the case of rape, incest or medical necessity.”

The committee substitute of the resolution, as cleared Monday by Senate Judiciary, states that nothing in the state constitution would secure or protect a right to an abortion or requires the funding of the procedure.

“It’s pretty simple. I think it’s important that we secure rights for women to have abortions in those very limited situations,” Palumbo explained from the Senate floor. “And I’ll just say this, I’m not certain this is a fact, but I do believe that this will be the first time the constitution will be used to restrict rights of people in this state. And this would just at least limit that scope a little bit.”

Senate Judiciary Chair Charles Trump asked various questions of Palumbo and ultimately stated that the amendment would reverse the original intent of the resolution.

“First of all, I think it would be a dangerous precedent. And as far as I know, landmark action would be the first time of which I’m aware — now there may be a state somewhere that has something in its constitution,” Trump said. “But if the senator from Kanawha’s amendment is adopted, the West Virginia constitution will expressly guarantee a right to certain abortions. I’m not aware of any other state constitution of any of the states in the United States which has such a guarantee.”

Trump said the resolution would allow the Legislature to exercise some budgetary authority over the expenditure of Medicaid dollars.”

Trump also explained that the resolution, if passed, would override a 1993 West Virginia Supreme Court decision on abortions funded by taxpayers through Medicaid. The court declared that a law signed by then-Governor Gaston Caperton was unconstitutional — in that it discriminated against low-income women.

Democrat Sen. Mike Romano stood in support of Palumbo’s amendment.

“If you’re not playing politics–and we are playing politics here, we’ll know that — but if we’re not playing politics, then we have to apply some common sense. And the common sense tells us that we cannot ignore someone’s life when it’s on the line,” Romano said.

Palumbo’s amendment was voted down 7-22 with five members absent. Sen. Bob Plymale was the only Democrat who voted against the amendment. The resolution moves on to Third Reading Friday and up for a vote.

Resolutions calling for constitutional amendments require a two-thirds majority in both chambers before making their way on to the ballot for the the general public to decide.

If passed, Senate Joint Resolution 12 would clear up issues of constitutionality surrounding House Bill 4012. That bill seeks to exclude abortion from a list of services provided by Medicaid. After being passed by the House Health Committee, the bill is expected to soon be taken up by House Judiciary.

Lawmakers Prepare to Craft Boy Scout Legislation

The Legislature’s Joint Committee on Finance traveled to Fayetteville Monday evening to hear from area residents about their concerns about the financial implications of a newly approved Constitutional Amendment.

The amendment, which was approved in November by West Virginia voters with 62 percent of the vote, will allow the Boy Scouts of America to lease their Summit Bechtel Reserve to private organizations while maintaining their property tax exemption.

The amendment, however, came with a requirement for lawmakers to write enabling legislation to include more specific cans and can nots for the Scouts. The forum was a chance for lawmakers to hear concerns directly from the public.

Some shared worries over the possible competition to the Scouts.

"I hope the committee will take into consideration to consult with local outfitters, restaurants, lodging properties that we don’t get ourselves in a situation where because of a tax exempt status we have an unequal playing field.”- Skip Peter, New River Adventure

“At Ace we are probably the most similar facility to what the Scouts have to offer. We have a lot of acreage, we do a lot of similar activities on the property and we would very much like to not see us in direct competition for those activities.”- Dave Bassid, Ace Adventure Resort

Others addressed complaints from area business owners who said they didn’t see enough economic gain in the area during the 2013 Scout Jamboree on the reserve.

“The game changer is not the jamboree. The game changer is what they’re trying to do now is to open it up, let people come there and see what that does for your businesses. It can only do good.”- Elmer Coppoolse, Glade Springs Resort in Beckley

“The key I think is if the Summit constructs large scale lodging and restaurant facilities that allows these events to be contained on the property, the effect will be the same, but if they hold these events there but allow the crowds to spill over in the community then I think they’ll be a big benefit to the local area”- Bill Wells, rental property owner

The Joint Committee on Finance is accepting written public comment for the next 30 days on the enabling legislation that is being drafted. Those comments should be sent to:

Melissa Lilly, Counsel to the Joint Standing Committee on Finance

State Capitol Building 1 Room 465

Charleston, WV 25305

Nonprofit Tax Exemption Amendment Passes, Success for Boy Scouts

A West Virginia constitutional amendment will allow the Boy Scouts of America to rent out a property without losing its tax exemption.

Voters approved the West Virginia Nonprofit Youth Organization Tax Exemption Amendment on Tuesday.

The Boy Scouts sought to rent out facilities it owns at the Bechtel National Scout Reserve in Fayette County to raise money for its operations. The facilities would be used for concerts and sporting events.

Up until this year, the complex was used only for scouting events and a Boy Scout Jamboree that occurs every four years.

Without the amendment change, the Boy Scouts would have been on the hook for as much as $5 million in property taxes.

The amendment eliminates the potential tax burden. It passed with 62 percent voter approval.

Opponents of the amendment feared it gave the Boy Scouts an unfair advantage over local businesses that do pay taxes.