Tax Reform Story Archives - Page 2 of 9 - West Virginia Public Broadcasting

Senate Tax Reform Proposal Gets State Tax Dept. Scrutiny

Details read from a State Tax and Revenue Department Fiscal note on the multifaceted Senate tax reform plan would see a total cost of around $740 million instead of the $600 million Senate projected cost.

Indications that Senate, House and Executive branch leadership were working toward a tax reform compromise got a shake up on the House floor Wednesday.

A state Tax and Revenue Department fiscal note on the Senate tax reform plan indicated a total cost of around $740 million dollars instead of the $600 million Senate projected cost. The note also mentions several problematic references, definitions and other inconsistencies in the bill wording and methodology.

House Finance Committee member, Del. Larry Rowe, D-Kanawha, was troubled by the fiscal note.

“Basically, it would be to fund what was in Amendment 2 that was on the ballot and that the governor opposed,” Rowe said. “The bill ran in six hours. I’ve never seen that in my life, six hours from introduction to sending it to the House with this rule suspension. It came very fast. It’s also got some problems in the writing of the bill.”

Del. Marty Gearheart, R-Mercer, said that he’s not prepared to endorse a Senate plan containing property tax relief elements similar to the failed Amendment 2, such as a 50 percent equipment and inventory property tax cut for West Virginia small businesses.

“It doesn’t mean I’m not confused and maybe a little upset that we can’t get past the fact that something that we placed on the ballot, something that I supported and voted for,” Gearheart said. “However, it didn’t pass. We’ve got two and a half weeks to provide relief to West Virginians. We’ve got two and a half weeks to see to it that they pay less tax. Beyond my confusion, let’s find a way to get it done.”

Rowe said the slow-moving tax reform issue is holding up other things lawmakers need to do, like funding $85 million for passed safe schools legislation – to change the security entries at schools statewide

Reporter Roundtable Talks Campus Carry, DHHR And Tax Reform

On this episode of The Legislature Today, we have our Friday reporter roundtable where we discuss the big news of the week. WVPB’s Randy Yohe and Chris Schulz are joined this week by veteran TV newsman from WCHS in Charleston, Bob Aaron.

On this episode of The Legislature Today, we have our Friday reporter roundtable where we discuss the big news of the week. WVPB’s Randy Yohe and Chris Schulz are joined this week by veteran TV newsman from WCHS in Charleston, Bob Aaron.

Also, the Senate gaveled in a little early Friday morning to pass several bills relating to fiscal issues, including changes to the state’s retirement systems.

And the Senate also enacted a change in leadership Friday. As Chris Schulz reports, the seemingly small change was met with great emotion.

Finally, it was Adventure Travel Day at the West Virginia Legislature. On and off road enthusiasts touted some mean machines on two wheels and four – and some machines, not so mean. Randy Yohe has the story.

Having trouble viewing the video below? Click here to watch it on YouTube.

The Legislature Today is West Virginia’s only television/radio simulcast devoted to covering the state’s 60-day regular legislative session.

Watch or listen to new episodes Monday through Friday at 6 p.m. on West Virginia Public Broadcasting.

Tax Reform Roundtable Brings Out Conservative Big Hitters

Gov. Jim Justice continued to push for tax reform Monday in a roundtable that featured two of the country’s top conservative tax policy influencers.

In his opening remarks the governor drew attention to the crowd size.

“There’s an awful lot of you out there, I hope you don’t have any eggs or rocks,” he said.

Justice was joined at the West Virginia Culture Center by Grover Norquist, president of Americans for Tax Reform and Stephen Moore with The Heritage Foundation.

The nearly all male roundtable also featured Senate President Craig Blair, R-Berkeley, House Speaker Roger Hanshaw, R-Clay, and local business leaders.

A few of those business stakeholders included Charleston Chick-Fil-A owner Tom Minturn; president of Ashbrooke Express Mart, Joseph Moser; and Kristin Anderson, a former swimming coach and “wife and mother” from the Kanawha Valley area.

“I’ve seen too many friends and family members choose to leave the state for opportunities and so I think anything we can do to make this you know, make our economy competitive, make this a desirable place to live, work and raise a family,” Anderson said. “Once people get here. They won’t leave.”

Justice has been promoting a reduction in the personal income tax since last year. His tax plan, approved by the House at the start of the 2023 legislative session calls for a 50 percent personal income tax cut beginning with a 30 percent phased-in cut starting in June. This would be followed by two 10 percent tax cuts in 2024 and 2025. It includes a $700 million fund to cover a possible financial downturn.

The House of Delegates early in the legislative session passed a bill similar to the governor’s recommendation. The Senate has since passed a separate bill with small reductions as well as tax credits.

Norquist said moving quickly to bring the rates down to zero over time is key. He cited North Carolina, which he said has “taken their income tax rate down dramatically” over the last 12 years.

“There’s not much of a difference between six years and seven years. Get it done, get it done right and bring the rates down to zero over time,” Norquist said. “The most successful states have done it with triggers, where revenue comes in above a planned spending level. So half of that money or two thirds of that increase goes straight into reducing the income tax permanently.”

Norquist described it as a march to zero.

“There are a number of states doing it. West Virginia can be in the lead, acting this year,” he said. “And I just urge you to look towards a flat rate, look toward zero, and make it clear that that’s where you’re going over time so that people making investments deciding to move here decide to stay here know that that’s what’s coming.

Stephen Moore said the state’s economic viability depends on what he called three “critical” factors: the right to work, schools of choice, and zeroing out the income tax.

“That’s an enormous stimulus to the families of West Virginia but also to the economy,” he said.

Both Blair and Hanshaw talked about tax reform under consideration in the legislature. Blair said he was concerned about how going to zero tax income would change the metrics on how the state’s reciprocity agreement with other states works.

Blair is talking about West Virginia’s reciprocal agreements with Kentucky, Maryland, Ohio, Pennsylvania and Virginia. Any West Virginia resident who works in one of those states, must file for a refund from that state if their employer withheld the other state’s income tax.

“We will make it so that the people working in West Virginia will be zero, but they could actually end up paying more taxes than what they currently would have been in the state if the reciprocity agreement goes away.”

“And that reciprocity agreement is real. These other states that need it because the other states around them came up that way and they were able to manage accordingly.”

Dr. Joshua Baker, president of Mount West Community and Technical College in Huntington, told the panel he’s heard from site selectors and companies concerned about “available workforce” as well as about taxes.

“I think we’re in a very interesting time period where people, mostly because of remote work but also because of some socio-political issues that people are looking to relocate and we are on the map,” Baker said. “And the package that we put together, which absolutely includes taxes, is a critical element as they decide where they’re going to move.”

Charleston Chick-Fil-A owner Tom Minturn returned to West Virginia 12 years ago to open up his business which now includes about 250 team members.

“We talk a lot about prosperity, and we do some financial counseling coaching with them to be able to help them but to be able to provide this for them would be amazing,” he said.

House Finance Chair Cites Opportunity For Tax Reform Compromise

Chairman Criss said the Senate’s goal is trying to return $600 million back to the public. He said the Senate tax plan is now under House study, with some specific definitions needed.

Will we see any sort of tax reform passed this session? The House Finance Committee Chairman said he’s now had time to digest this week’s sweeping Senate Tax Reduction plan.

Vernon Criss, R-Wood, said he currently supports a proposed phased-in, 50 percent personal income tax reduction. But he also said, contrary to popular opinion, tax reform negotiations between the House, Senate and Executive Branch are underway.

“There has been an open communication between the leadership here in the house and a couple of the leaders in the Senate to be able to talk about what they want,” Criss said. “Once we get some definitions and dig down into trying to figure out what they have proposed, and we obviously have countered. As we all know, it’s a compromising situation in this business and that’s what we’ll have to do.”

SB 424 proposes:

A 15% decrease in personal income tax

A vehicle tax rebate

The elimination of a “marriage penalty” when filing West Virginia taxes

A 50 percent rebate for small businesses on equipment and inventory property tax

A homestead property tax rebate for some service-disabled military veterans.

Criss said the Senate’s goal is trying to return $600 million back to the public. He said the Senate tax plan is now under House study, with some specific definitions needed.

“They need to come up with a definition with some of the ways they’re wanting to do some of the tax, ie, the small business definition,” Criss said. “Also, making sure that the veterans tax exempt homes, that on property taxes that we’re talking about their homes and not commercial property or industrial property that a veteran may own. So those types of things, we still have to work out.”

Criss expects those definitions to be answered early next week.

“We’ve got time and we’ve got the opportunity because now the House has a Senate bill and the Senate has a House bill to be able to work through this,” Criss said.

With less than 30 days left in this session, tax reform looks to be back on the legislative front burner.

Reporter Roundtable Talks Tax Reform, Campus Carry And Workforce Needs

On this episode of The Legislature Today, our WVPB reporters Randy Yohe and Chris Schulz sit down with fellow reporter Steven Allen Adams of Odgen Newspapers to discuss the past week at West Virginia’s statehouse.

On this episode of The Legislature Today, our WVPB reporters Randy Yohe and Chris Schulz sit down with fellow reporter Steven Allen Adams of Odgen Newspapers to discuss the past week at West Virginia’s statehouse.

Also, the Senate suspended its own rules to pass a bill Friday morning. Senate Bill 510 was introduced and passed by the chamber in less than five minutes. Senate Finance Chair Sen. Eric Tarr, R-Putnam, said the move was necessary to address a budgeting oversight around the state’s newly formed charter schools.

The Senate’s Workforce Committee met after the regular floor session Friday. As Chris Schulz reports, they heard two reports on the state’s workforce situation: one about what’s being done, and one about what could be done.

And getting young, out-of-state professionals, especially in the medical industry, to make a life and career in West Virginia is an across the board challenge. On West Virginia Rural Health Workforce Day at the West Virginia Legislature, Randy Yohe gets to the crux of helping meet that challenge.

The Legislature Today is West Virginia’s only television/radio simulcast devoted to covering the state’s 60-day regular legislative session.

Watch or listen to new episodes Monday through Friday at 6 p.m. on West Virginia Public Broadcasting.

Justice Tax Cut Proposal Includes Safety Net

Gov. Jim Justice’s 50 percent income tax cut proposal, a highlight of his State of the State address, comes with a big funding hedge against recession and some state comparisons touting success.

In a Thursday media briefing, Justice said in case of unexpected future revenue surplus failures, he will set aside $700 million for a state income tax rainy day fund.

“If we stub our toe just a little bit, and we need to pull from the personal income tax rainy day fund, it’s there as a great insurance policy,” Justice said. “We don’t want to overspend ourselves and get ourselves in trouble.”

In the briefing, Revenue Secretary Dave Hardy said phasing the 50 percent cut over three years will cut the state’s top income tax rate down to 3.25 percent. He said national studies show other states without personal income taxes flourish economically.

“Tennessee, Florida and Nevada, they are far and away outperforming the states that do have an income tax,” he said. “Their populations are growing faster and their gross domestic economies are growing faster.”

Hardy said the 50 percent cut will give West Virginia a lower income tax rate than any border state.

“We are going to be lower than all those states surrounding us, Virginia, Maryland, Kentucky and Ohio,” Hardy said. “This will create an incentive for people to move into West Virginia and avail themselves of the financial success and prosperity that we’ve had here.”

Hardy presented the governor’s budget and tax cut plan to the House of Delegates finance committee Thursday. Earlier in the day, House Bill 2001, cutting the personal income tax by 10 percent, went to that same committee.

On the Senate side, Finance Committee Chair Eric Tarr, R-Putnam, has publicly said he will not support any tax reform from the governor. Tarr and Senate President Craig Blair, R-Berkeley, have alluded to an effort to resurrect the impetus of failed Amendment 2, eliminating the state inventory and machinery property tax. That tax is constitutionally protected.