Debate over a constitutional amendment affecting taxes isn’t taking a day off.
House Speaker Roger Hanshaw reiterated his support for Amendment 2, noting that it doesn’t automatically affect personal property taxes but instead gives lawmakers the authority to make changes.
“If adopted by the voters, the amendment gives the Legislature the ability to finally begin a serious conversation with the counties, the municipalities and the boards of education about what the proper tax structure should look like in West Virginia,” Hanshaw, R-Clay, said today on “580 Live” on WCHS Radio.
“Somehow the miscommunication has managed to develop, which people are believing, that if the amendment is adopted then that tax is immediately abolished — and that’s simply not the case.”
Senate President Craig Blair expressed frustration over public characterizations of the amendment.
“The people who are against Amendment 2 have been committed to a disinformation campaign from the beginning, and I just want to make sure the people of West Virginia understand what’s at stake here,” Blair, R-Berkeley, stated today in a release from the Senate.
“The passage of Amendment 2 doesn’t cost the state, the counties, or municipalities a single penny. It simply allows the Legislature to begin the work that’s necessary for real, comprehensive tax reform in this state.”
.@WVSenatePres joins @HoppyKercheval to discuss the 5% teacher pay raise, and he discusses the claims of misinformation from the opponents of Amendment Two. WATCH: https://t.co/yCFQ3nDJuy pic.twitter.com/GLjEi8rlC5
— MetroNews (@WVMetroNews) October 10, 2022
And Gov. Jim Justice, on the road again with his well-known dog to campaign against the amendment, suggested state residents shouldn’t trust officials at the Capitol with decisions about taxes. The governor was appearing with Revenue Secretary Dave Hardy.
“Ask yourself, does Charleston even know you exist in many ways? I mean, really. We can say what we want. They may come to you and say we’re going to give you another million dollars. Well, I mean, that’s easy. I can say Babydog and I are going to give you all our chicken nuggets, but it’s probably not going to happen,” Justice said at Twin Falls Resort State Park in Wyoming County.
“We can say anything, anything. But just because we say it doesn’t mean it’s absolutely gospel.”
The governor then turned to the bulldog in a chair beside him for an aside. “You’re not giving up your nuggets, are you?”
Justice has been barnstorming the state almost every day to campaign against the amendment. He is being countered by some of his fellow Republicans, particularly senators Blair and Eric Tarr, who contend tax reform under the amendment would lead to economic growth.
The West Virginia Chamber of Commerce and the West Virginia Manufacturers Association for years have favored the kind of changes it could bring. On the other side, the West Virginia Association of Counties and the County Commissioners Association of West Virginia have taken positions against it, expressing concern about uncertainty for the finances of local governments that depend on property taxes.
Amendment Two recognizes that, for decades, property taxes have been defined by the state Constitution. This amendment would allow the Legislature more flexibility to make changes to personal property taxes.
State lawmakers have long talked about having more flexibility with property taxes, particularly those that businesses pay on equipment and inventory. Last year, lawmakers passed a resolution that could allow changes on personal property tax rates.
Now citizens will have a say in whether that’s wise.
The governor, as he has suggested at many of his recent stops, said property taxes on vehicles are a sweetener to get voters to open the door for property tax cuts on business, equipment and machinery for businesses. “They’ve got to have your vote because right now they don’t have the mechanism to do it,” Justice said.
“You do have control right now of your destiny. If you give it up with your vote, then at the end of the day Charleston has control of your destiny. You understand what I’m saying there? Really and truly, what you’re voting on with Amendment Two is to give them the ability to change the tax code. Today, they don’t have that ability.”
The governor said anyone who would allow that would be a “dumb bunny.”
Speaker Hanshaw on local radio today said the taxes on machinery, equipment and inventory are out of line with other states and hamper West Virginia’s competitiveness. So, Hanshaw said he supports the amendment. But he said the amendment itself does not lead directly to those tax cuts.
“The criticism that I have heard is, ‘Well, we don’t trust the Legislature.’ To just call it what it is, that argument is ridiculous on its face because the Legislature has plenty of opportunity right now today under the laws that are on the books to make life very difficult for counties and cities and boards of education. But we don’t do that because we live here too. We don’t do that because we depend on local government to provide for our communities too,” he said.
Hanshaw pushed back on the contention that “Charleston” shouldn’t be trusted decisions about taxes. He noted that elected representatives come from all 55 counties around the state and happen to vote on policy while gathered in Charleston. “I don’t know what that term even means,” Hanshaw said.