CHARLESTON, W.Va. — Both houses of the state Legislature today passed a bill allowing certain tax information to be shared between the state Tax Department and designated employees of the state Division of Highways.
The House of Delegates approved an amendment offered by Delegate Michael Folk, R-Berkeley, strengthening the bill to say the information shall be shared between the agencies, rather than making it optional. So the whole bill will have to go back to the Senate to approve or disprove the latest version of the bill.
Senators suspended rules and passed the bill Monday in three straight readings during special session. The bill passed with 31 yeas, 0 nays and 3 absent.
The House later in the afternoon also suspended rules and passed the bill with 94 ayes, 0 nayes and 5 absent.
The bill is one of a set of measures touted by Gov. Jim Justice to ensure proper handling of highways contracts and taxes coming out of statewide passage of a $1.6 billion road bond. This was the first bill to be passed by either house during the session, which began at noon Monday.
Justice said this bill is necessary to make sure the Highway department is aware and may act if contractors on winning highways bids are not up to speed on their tax obligations.
MORE: Read the tax information sharing bill.
The bill, which amends existing state code, clarifies that failure to remit personal income taxes required to be withheld by a contractor is grounds for withholding payment in final settlement of a contract.
Senator Ed Gaunch, R-Kanawha, wanted to know how the bill might affect subcontractors.
“So is it the general contractor’s responsibility to make sure the subs are in compliance?” Gaunch asked.
Senator Charles Trump, R-Morgan, proposed an amendment to the bill further defining some of the private aspects of what may be shared.
Summed up, Trump’s amendment makes it so that information that is considered private at the Tax Department would receive the same designation when it moves over to the Highways Department. The amendment passed.
As the full bill moved toward passage in the Senate, Trump stated his backing.
“I think it’s a good idea. We’re talking about the taxpayers of this state making an enormous investment,” Trump said.
The Senate completed first reading of a bill implementing special hiring procedures for DOH and Tax Division. Justice says that bill is meant to expedite hiring in those agencies, particularly for auditors to keep an eye on road project financing and the tax situations of contractors.
The Senate adjourned until noon Tuesday.
The House of Delegates, at its 5 p.m. Monday floor session, completed first reading on a bill dealing with tax credits for rehabilitation of historic buildings and structures.
Earlier in the day, the House completed first reading of a bill exempting military retirement income from personal income tax. The Senate referred a version of that bill to its Finance Committee.