SENATE RESOLUTION 303

(By Senators Blair (Mr. President), Tarr, Roberts, Clements, Hamilton, Sypolt, Boley, Woodrum, Takubo, Maroney, Weld, Grady, Stover, Rucker, Karnes, Smith, Azinger, Maynard, Swope, Phillips, Trump, Martin, Plymale)

[Introduced July 29, 2022]

Resolution for meaningful tax reform and relief.

Whereas, One of the top priorities of the West Virginia Senate has been, remains, and continues to be growing West Virginia’s economy and facilitating a prosperous and opportunity filled environment for West Virginia families; and

Whereas, The personal property tax on business inventory and equipment, as well as personal motor vehicles, is a regressive tax that hampers West Virginia’s ability to realize its economic potential; and

Whereas, The West Virginia Legislature on April 10, 2021, passed House Joint Resolution 3, Property Tax Modernization Amendment, also known as the “Amendment Two. Property Tax Modernization Amendment”; and

Whereas, Ratification of the Property Tax Modernization Amendment would give the Legislature the authority to exempt certain classes of personal property from taxation. Specifically, passage of Amendment Two would allow for the elimination of personal property tax on the following six categories of personal property: machinery and equipment, furniture and fixtures, leasehold investments, computer equipment, inventory, and motor vehicles; and

Whereas, On November 8, 2022, the citizens of West Virginia will have the opportunity to approve or disapprove the Property Tax Modernization Amendment; and

Whereas, The relief estimated to be provided to the taxpayers of West Virginia and businesses choosing to do business in West Virginia is estimated to be approximately $500 million if the personal property tax is eliminated as authorized by the Property Tax Modernization Amendment; and

Whereas, The Legislature has prepared for the passage of the Property Tax Modernization Amendment by deliberately and methodically passing a flat line state budget for four consecutive years; and  

Whereas, The Senate understands and shares the desire to provide immediate financial relief to West Virginia citizens. To that end, the Senate also supports establishing an immediate process to refund to taxpayers the amount of personal property tax attributable to the taxpayer’s motor vehicle on their 2020 personal property tax ticket; and

Whereas, the taxpayers of West Virginia have communicated to the Senate their support for elimination of what is often referred to as the ‘13^th car payment’ as authorized by the Property Tax Modernization Amendment; and

Whereas, West Virginia business owners have voiced their support for elimination of the personal property tax as authorized by the Property Tax Modernization Amendment; and

Whereas, The Senate also strongly supports the long term, maintainable plan for providing meaningful personal income tax relief. By enacting a formula for personal income tax reduction based upon increased economic activity, West Virginia will be on a path for sustainable tax relief; and             

Whereas, While committed to a plan for income tax relief, the Senate does not believe that reducing the average West Virginia taxpayer’s monthly income tax liability by $20 will be an economic driver nor provide meaningful relief to the taxpayer; and

Whereas, The Senate is committed to obligations in statute and base budget backfill to all counties for revenue replacement in perpetuity that is above and beyond the personal property taxes to be eliminated; and

Whereas, The Senate is committed to including often overlooked retirees in the financial relief provided. The Senate strongly supports adoption of the plan developed by the Joint Committee on Pensions and Retirement that provides financial relief to retirees who receive less than $1,000 per month.

Resolved by the Senate:

The Senate recognizes that the citizens of this State will have the opportunity to vote for or against the passage of the Property Tax Modernization Amendment authorizing the elimination of the personal property tax in November; and, be it

Further resolved, That the Senate intends to carry out the will of the voters if the Property Tax Modernization Amendment is ratified; and, be it

Further resolved, That the Senate is committed to carrying out the other initiatives outlined in this resolution as part of a comprehensive plan to spur economic growth and facilitate a prosperous and opportunity filled environment for West Virginia families.