House Concurrent Resolution 98

By Delegates Howell, Arvon, Ellington, Rohrbach, R. Smith, Walters, Householder, Shott, Espinosa, Miller and Storch

[March 5, 2016;
Referred to the Committee on Rules.]

Requesting that the Joint Committee on Government and Finance conduct a study on lowering the state’s overall sales and use tax rate (“the sales tax”) and eliminating the motor fuel excise tax (“the fuel tax”) for gasoline and diesel, except for aircraft fuel, without reducing the state’s revenue;

Whereas, The Joint Committee on Government and Finance is hereby requested to conduct a study to determine a revenue-neutral method to lower the state’s overall sales tax and eliminate the fuel tax for gasoline and diesel, variable and fixed, except for the tax on aircraft fuel; and,

Whereas, In conducting this study, the Joint Committee on Government and Finance is requested to review the following measures: eliminating all exemptions to the state sales tax, except for exemptions for food and medical items, and dedicating a portion of sales tax proceeds to the State Road Fund equal to that which is currently generated by the fuel tax, as an alternative to the fuel tax; and

Whereas, In conducting this study, the Joint Committee on Government and Finance is requested to determine what the overall sales tax rate would need to be, after implementing the measures listed in the preceding paragraph of this resolution, to generate the same level of revenue that is currently generated by the fuel tax and sales tax; therefore, be it

Resolved by the Legislature of West Virginia:

That the Joint Committee on Government and Finance conduct a study on lowering the state’s overall sales and use tax rate and eliminating the motor fuel excise tax for gasoline and diesel, except for aircraft fuel, without reducing the state’s revenue; and, be it

Further Resolved, That the Joint Committee on Government and Finance report to the regular session of the Legislature 2017, on its findings, conclusions and recommendations, together with drafts of any legislation necessary to effectuate its recommendations; and, be it

Further Resolved, That the expenses necessary to conduct this study, to prepare a report and to draft necessary legislation, be paid from legislative appropriations to the Joint Committee on Government and Finance.