WEST VIRGINIA LEGISLATURE

2022 REGULAR SESSION

Introduced

House Bill 4615

By Delegates G. Ward, Barnhart, Haynes, and Foster

[Introduced February 10, 2022; Referred to the Committee on Finance]

A BILL to amend the Code of West Virginia, 1931, as amended, by adding thereto a new section, designated §8-13-28, relating to permitting municipalities to create a tax reduction fund; reduce taxes or fees on businesses and individuals; and use the savings funds for losses or short falls in the prior fiscal year.

Be it enacted by the Legislature of West Virginia:

ARTICLE 13. TAXATION AND FINANCE.

§8-13-28. Tax reduction savings fund; municipalities may reduce taxes or fees.

(a) The governing body of every municipality may reduce taxes, whether sales taxes, business and occupation taxes, or fees on individuals or businesses, and on business or residential properties. The governing body of every municipality may determine whether the reduced tax or fee shall be on all such taxes or fees, or on any one or more of the taxes or fees.

(b) The governing body of every municipality may establish a special fund to be known as the “tax reduction savings fund.” The fund shall consist of unexpended balances of other funds resulting from the reduction of taxes or fees which may be transferred to the fund, with the approval of the State Tax Commissioner, at the end of the fiscal year:  Provided, That the governing body may determine the percentage of tax reduction savings to be transferred to the fund.

(c) The fund may be used, from time to time, if there is a short fall or loss in the prior fiscal year budget. Expenditures may be made from the fund only in accordance with an appropriation made pursuant to the annual budget not to exceed the amount equal to the loss or short fall in the prior fiscal year.

NOTE: The purpose of this bill is to permit municipalities to create a tax reduction fund; reduce taxes or fees on businesses and individuals; and use the savings funds for losses or short falls in the prior fiscal year.

Strike-throughs indicate language that would be stricken from a heading or the present law and underscoring indicates new language that would be added.