by Tom Bloom
House Joint Resolution 3, labeled the Property Tax Modernization Amendment, will be on the November ballot. This would amend the State Constitution by providing the Legislature with authority to “exempt tangible machinery and equipment personal property directly used in business activity and tangible inventory personal property directly used in business activity and personal property tax on motor vehicles from ad valorem property taxation.”
A “yes” vote supports amending the West Virginia Constitution to authorize the state Legislature to exempt personal property (machinery, equipment and inventory).
A “no” vote opposes amending the West Virginia Constitution to authorize the state Legislature to exempt the items listed above.
At the West Virginia Association of Counties conference Feb. 7, Sen. Tarr explained his reasons why the counties in West Virginia should support HJR 3. Unfortunately, while his message had good intentions, I believe it was flawed, with misinformation and open-ended promises.
I believe the citizens of West Virginia are not being told the entire story by the Legislature.
1. There is no plan! (Ask your legislators.) Their only answer currently is to “trust them.” Can you imagine asking about the total cost of the house you are buying, and the Realtor states, “Don’t worry, trust me”? What do you think the bank will say when you apply for a loan?
2. This amendment, if passed, only states that a future legislative body will develop a plan. It does not mandate by law that the counties will be reimbursed for lost revenue. It does not mandate by law that future legislative bodies shall help the counties recoup these funds. (Remember, the current surplus comes from “one-time funds,” but they say, “trust them!”
3. In Monongalia County, we have TIF Districts (Tax Increment Financing). This is the only county incentive program allowed by the state. It is based on future growth and personal property taxes, so the counties that sold bonds (using the personal property taxes for future infrastructure) will now default on their bonds. When Sen. Tarr was asked about the TIF problem, he stated, “It is a concern,” but to “trust them.”
4. The proposed amendment will be promoted to our constituents as you will not be paying any taxes on your car. What they are purposely leaving out is that you will have to pay higher property taxes or real estate taxes to fill the void of the lost revenue.
In fact, the counties were informed, that the current rate of 60% on real estate taxes could be raised higher and potentially up to 100% as an option. Why, you ask? Because the Legislature has stated it wants our taxes to be similar to our surrounding states so we can be competitive.
Look at the real estate taxes in Virginia, Pennsylvania and Ohio. The citizens in West Virginia will be paying the taxes, but the larger companies will be getting a huge tax break.
5. The last time the Legislature told the citizens in Monongalia County to trust them, the Monongalia County Commission was the first group on record to support the Roads To Prosperity. Our constituents passed it at an 82% level. Five years later, we have not had one project come to fruition in our county. But the legislators say we should “trust them.”
6. And finally, Monongalia County could potentially lose around $25 million a year ($20 million a year for the schools and $5 million for the county). As a former high school guidance counselor, I’m concerned this proposal will hurt our most precious resources: our children. Will the school formula come up with the funds to fill the void in every county?
Learn the facts. Ask your county assessor how much your county and your local school system will lose if HJR 3 is passed as an amendment.
Then, ask your state legislator what is the legislative plan if the amendment passes.
The facts and the truth will be clear, and voting no will be your logical choice.
