W.Va. House Kills Another Revenue Increase

The West Virginia House of Delegates has killed another revenue increasing bill – one that would’ve generated an estimated $215 million in three years.

House Bill 2933 has taken several forms as it worked its way through the House of Delegates. In its latest form that was set for a vote Wednesday, the bill would’ve reinstated a 3 percent food tax in October of this year and eliminated a number of exemptions to the current sales tax – things like daycare services, cell phones, or personal and professional services.

It would’ve lowered the sales tax from 6 to 5 percent in July 2018, and it would’ve put a flat 5.1 percent rate on the personal income tax.

Several delegates swore on the campaign trail they would not support any revenue increases, and some members even tried killing the bill on its first reading in the chamber Saturday. By the time the bill reached second reading Monday, it had over a dozen pending amendments.

Consideration of any of those amendments and the bill itself were delayed multiple times before it was ultimately laid over Wednesday night. Wednesday, however, was crossover day, or the final day members can vote on bills originating in their chamber. That procedural move kills the bill and prevents lawmakers from putting it to a vote.

A similar tax reform measure, however, passed out of the State Senate Wednesday. That bill increases the sales tax, creates a new structure for the personal income tax, and lowers the severance tax on coal.

Road Funding Bill Slowing in House Committee

The House Finance Committee will continue debating a bill Tuesday morning that would increase Division of Motor Vehicle fees and some taxes to help fund road maintenance and construction projects.

The House Finance Committee began debating Senate Bill 555 Monday afternoon, but after an hour of discussion, Chairman Eric Nelson moved to lay the bill over until Tuesday morning.

As approved in the Senate, the bill adds a trigger to increase the state’s gasoline tax by 3 cents when the wholesale price of a gallon drops below $2 dollars, but also generates dollars for the state road fund through increased taxes and fees.

A House Finance Subcommittee of seven members discussed the bill on Friday, and suggested the committee as a whole move forward with caution because of the included increases.

There are two pending amendments to the bill that were suggested by the subcommittee. Those amendments are expected to be discussed further when the committee meets again Tuesday.

Tobacco Tax Bill Pushed to Wednesday in Senate Committee

After some discussion of possible amendments, members of the Senate Finance Committee decided Tuesday to finish their consideration of a bill to increase the state’s tobacco tax Wednesday afternoon.

The bill, introduced on behalf of Governor Tomblin, would increase the tax by 45 cents per pack and also includes various increases for other tobacco products. Members, however, were interested in several amendments to the bill, leading to the recess.

Tomblin presented the bill as a part of his plan to balance both the 2016 and 2017 budgets. That plan also included a 6 percent tax on cell phones and land lines. 

Senate Finance Chair Mike Hall said Tuesday he realized months ago it was time for lawmakers to begin discussing ways to bring more money into the state’s coffers, and whether it’s for health or revenue reasons, Hall believed members of the Legislature are willing to at least consider the tobacco tax hike.

“It’s not as broad based as I would like to see it if we’re going to do a revenue measure,” Hall said. “There are broader based taxes possibly that don’t just affect this population, but this is the one that’s been bandied about this building for a long time.”

Amendments discussed Tuesday included dedicating a portion of the funds generated by the increase to funding the state’s Public Employee’s Health Insurance Agency. That amendment is expected to be discussed further Wednesday.

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