CHARLESTON, W.Va. — West Virginia Chamber of Commerce President Steve Roberts says the state’s business community is looking at a $300 million increase in taxes if Gov. Jim Justice’s proposals are approved by the state legislature.
Justice wants to bring back the B&O tax, which was taken off the books in 1987. He’s calling it the Commercial Activities Tax. It would bring in more than $214 million a year in revenue, Justice said.
Roberts said there’s a reason why only three states have a similar tax.
“These are not taxes that encourage growth,” he said Thursday on MetroNews “Talkline.” “It simply says, ‘What are your receipts? Well, here’s your tax rate,'” Roberts said. “That is a very difficult tax for businesses to swallow. Particularly businesses that are struggling to keep people employed, struggling to continue making investment in West Virginia.”
The governor also proposed eliminating tax exemptions for professional services and advertising like accountants, lawyers and broadcasters. It’s estimated to bring in $88 million a year.
“We have some apprehension and very deep concern about what this level of taxation would do to our opportunity to grow business,” Roberts said.
Gov. Justice and members of his administration have said they didn’t know how bad the state’s financial situation was until they took office. Roberts said Thursday the numbers have been out for months. He said filling the projected $500 million revenue hole in next year’s budget could be done in thirds.
“A third from tax increases, a third from cuts in state government spending and a third from fee increases,” he said. “You could look at that and say that’s two-thirds more revenue and one-third less spending.”
Lawmakers began learning more about Justice’s plan Thursday at the state capitol.