Opponents of Amendment 2, including Gov. Jim Justice, say they know the potential elimination of taxes on personal vehicles will be a driving force for many voters come November.
So Justice is attempting to take some of the shine off that apple by pledging to make a bill providing immediate car tax rebates his legislative priority come January.
The state Constitution puts property taxation in the hands of the counties. Amendment 2, the Property Tax Modernization Amendment, would enable the Legislature to govern taxation of the personal property tax for business inventory, equipment and machinery, and for motor vehicles. Voter approval of the amendment wouldn’t immediately change the tax structure -— that would require subsequent legislative action.
Proponents say passage does nothing but give the legislature options to consider tax reform, which could help the state attract and retain investors.
Opponents, including the Monongalia County Commission, say it would be one of the most substantial changes to the state’s constitution in 100 years and would place the fiscal future of the counties in the hands of the legislature.
“We don’t want to be telling the public they shouldn’t vote to reduce their property taxes, but that’s not what this particular vote does. It removes power from local control and transfers it to the legislature,” Commissioner Sean Sikora said on Sept. 14, when the commission publicly stated it did not support the amendment.
Days earlier, on Sept. 8, the West Virginia Association of Counties (WVACo) and the County Commissioners Association of West Virginia issued a joint statement opposing the amendment and urging voters to reject it by voting no.
On Oct. 6, WVACo issued a statement backing Justice’s plan for car tax rebates. According to the statement, car taxes represent about $140 million.
“The counties strongly support giving taxpayers their dollars back as soon as possible,” WVACo President Matt Harvey said. “WVACo does support the governor and the legislature’s desire to provide tax cuts for the people, especially in these times of large budget surpluses. But it needs to be done in a sustainable manner that ensures stability of our vital local services when times get tough.”
Monongalia County Commissioner Jeff Arnett said the commission is interested in what Justice is saying but needs a little more information.
“That being said, we are all in favor of keeping local control over our revenue and budget. Whether or not this plan affords us that right is something we are certainly in favor of exploring,” Arnett said.
