MORGANTOWN, W.Va — Citing a loss of local control over funding sources, the Monongalia County Commission has adopted a resolution opposing the state constitutional amendment that would grant the legislature authority to make changes to personal property and business inventory taxes.
West Virginia voters will consider the proposal – known as Amendment 2 – during the upcoming general election. Legislative leaders who support the amendment have expressed a desire to eliminate the personal property tax on vehicles as well as the business inventory tax. Commissioner Sean Sikora said the commission’s opposition to the amendment is not a statement about whether or not the taxes should be cut.
“That’s not what this particular vote does. It removes power from local control and transfers it to the legislature,” Sikora said Wednesday.
Sikora said reducing taxes should be done in a thoughtful manner and had concerns with the plan to reimburse counties for lost revenue.
“Not knowing who these dollars, approximately 25 to 30 percent of our property tax revenue will be made up, causes us pause,” he said.
Lawmakers have estimated that if the taxes were eliminated, the savings to taxpayers and businesses would add up to $500 million. The savings along with continued economic growth could backfill counties for the loss of revenue.
“Right now we have guaranteed funds that we can generate based on tax these,” Commissioner Jeff Arnett said.
“What it’s going to turn into in the future, potentially, is we’re going to be Oliver asking for more, waiting in the food line asking the state to bestow upon us these funds that we rightfully have now.”
Supporters of the amendment believe eliminating the taxes will help attract new residents and businesses to the state. However, Arnett notes that Monongalia County has been able to draw new businesses, including manufacturers such as Mountaintop Beverage, even with the taxes in place.
“They came here willingly, knowing that tax was in place and it wasn’t a deterrent to bring them to Monongalia County,” Arnett said.
In August, the Kanawha County Commission also formally opposed Amendment 2. Kanawha County Commissioners also raised concerns about how local governments would be funded.
Election day is set for Nov. 8 with the early voting period beginning on Oct. 26.