CHARLESTON, W.Va. — State delegates in special session will again examine the extension of a tourism tax credit while also attempting to untangle how one of Gov. Jim Justice’s family businesses, the historic Greenbrier resort, could be affected.
The bill was introduced last month in a special session that coincided with regularly-scheduled interim meetings. The Senate passed it plus two other bills and then adjourned.
But the House of Delegates put it off because of concerns over how Justice’s Greenbrier properties could be affected long-term.
“When it passed the first time, Jim Justice was not the governor. But what’s before us now is an extension of it, and he is the governor,” said Delegate Daryl Cowles, R-Morgan, this week. “It’s certainly a concern.”
The tax credit bill that was passed by lawmakers a few years ago sunsets at the end of this month so the bill before lawmakers simply strikes through the original dates and subs in dates six years in the future.
“I don’t know if you can amend the underlying law or just have to work with the part of the bill that’s open,” Cowles said.
A bill passed at the very end of the 2014 legislative session was amended with language targeted to specific Greenbrier facilities, particularly its associated medical clinic.
The bill signing ceremony featured trumpets, Greenbrier catering and Jim Justice, who was a billionaire businessman but not yet the governor.
The law provides a tax break worth up to 25 percent of the cost of building new facilities but only in certain conditions. Businesses that qualify can only collect the credit if tax revenues grow.
A Tourism Development Act report to the Legislature describes what happened with past projects that have qualified for the credit.
Several qualifying projects, including some associated with Justice’s properties, remain eligible.
For instance, the tennis stadium and wedding chapel at The Greenbrier has 7 to 9 years remaining for the credit. The expansion properties have a potential credit of $4 million.
The athletic facility at The Greenbrier that was a pro football training center still has six to eight years of credit eligibility remaining. The maximum allowed would be $9.5 million.
But there are new tourism destinations not associated with The Greenbrier interested in the credit, the report details.
New possibilities include Corduroy Inn expansion project at Snowshoe in Pocahontas County, construction of a Greenbrier Valley Aquatic Center, the new Grand Patrician Resort in Cabell County, Rustic Ravines in Wayne County for visitors using the Hatfield McCoy trail system, renovation of Hotel Morgan in Morgantown and renovation of Hill Top House Hotel in Harpers Ferry.
The state Development Office says it is aware of three to five more projects that might submit applications.
“The year (2019) has been the most robust year of all the Tourism Development Act program since its inception in 2005,” according to the report.
Cowles said he voted against the bill in 2014 and remains concerned about its provisions aimed at breaks for properties owned by the current governor.
But he’s been persuaded that state tourism officials consider it a draw.
“They really like it and think it can be beneficial going forward,” Cowles said. “I’m kind of leaning toward the renewal of the act, but I’m uneasy with that old language that remains in there benefiting The Greenbrier.”
It’s not clear how to deal with that, though.
Because the bill currently before lawmakers currently just strikes through some dates, it’s not clear if legislative surgery can be performed on the full 2014 version currently on the books.
Moreover, amending the bill hits a wall because the the Senate’s adjournment.
A couple of outcomes are possible:
Pass the extension during special session this week and worry about broader changes when the regular session begins next month.
Or hold off on dealing with the bill at all until the regular session and make the date changes retroactive.
Or, finally, pass the bill and let it remain as it is and instead focus on the state’s ethics laws for public officials and their business dealings.
“I certainly don’t know yet, but I’m hoping to have some of those conversations when we get back down to the Capitol,” said Cowles, who asked several questions about the bill last month during a House Finance session.
Delegate Isaac Sponaugle, D-Pendleton, also asked about the bill during a House Finance meeting last month.
Sponaugle also said the tax credit seems broadly effective.
“The question is whether or not you want to extend the program out for another five years. Generally speaking, I think it’s probably a pretty good idea,” he said.
“It’s a way to encourage development or building in tourism. That in and of itself sounds good.”
But he is concerned about The Greenbrier provisions.
“There needs to be some interest on both sides to go back and clean this issue up – or go back and address it. It just looks bad,” Sponaugle said.
“There is nothing stopping the governor, who has never divested himself, from going in and using this tax credit starting January first.”
He concluded, “I think the bill is good. I just don’t think that’s the intention.”