MORGANTOWN — Money and control.
Those two things are at the heart of a constitutional amendment that will go before West Virginia’s voters on Nov. 8.
Amendment 2 — one of four that will be on the ballot — would give the state legislature the authority to change or eliminate personal property taxes
It is believed that if passed, there will be an immediate move to eliminate taxes on personal road vehicles, machinery and equipment, furniture and fixtures, leasehold investments, computer equipment and inventory.
A plan being circulated among the counties indicates those property taxes would be replaced by a fixed annual allocation from the state.
In the case of Monongalia County, where property taxes make up about a quarter of the county’s budget, the plan proposes an annual revenue replacement of $30,834,041 to be divided among the county, municipalities and board of education.
That number represents an increase of $6,281,962.68 over the county’s 2021 personal property assessments.
In fact, the plan promises amounts that reflect an increase of at least $1 million over 2021 assessments for every county, in perpetuity.
“I know other counties may look at this and say, ‘Wow, we’ll get this much. This is great for us.’ And you know what, probably the first few years if things go well, that may be. But what’s further down the road there,” Monongalia County Assessor Mark Musick said during a recent work session with the county commission.
“There are 38 counties that are maxed on their levy rates and another three or four that are very close. So what happens in the future if that money isn’t there from the state? You’ve got to pay the bills somehow.”
Commissioner Sean Sikora said the money being proposed in the revenue replacement plan will be viewed as a lifeline by some counties.
“We’re in this bubble in Mon County. We’re used to being shorted by the state. We’re cynical. Most of the groups I’ve talked to; all the groups at the senior center so far, every single one has been ‘No. I don’t want to give that authority away to the state because they’ll screw us down the road.’ ” he said.
Commission President Tom Bloom said the change would essentially make counties wards of the state, adding that the flat replacement rate “appears to be a punishment” for the few counties that see annual growth.
“My biggest, biggest concern is giving them the authority to make those decisions,” Bloom said. “It’s very difficult to put together a budget when you have to wait and see what happens every year.”
Musick agreed.
“Who knows the county better than the county’s elected officials? Who knows the county’s money better than the commission because you’re setting the budget,” he said. “When you start looking at these numbers, taken as a whole, that’s a lot of money that’s got to come in each year.”
But before any of that can happen, the “Property Tax Modernization Amendment” has to pass.
Bloom said that for the public, the elimination of taxes on vehicles will likely be a driving factor.
For county commissions, however, it all comes down to faith.
“For the most part, if you took the temperature of the room, I think even the counties who are going to be helped the most initially are saying ‘Our situation might not be great, but I don’t want to put it in the hands of the state,’ ” Sikora said.
