CHARLESTON, W.Va. — A new proposal in the state legislature, Senate Joint Resolution 6, will take a different approach to eliminate the Business Inventory Tax.
Sen. Chris Rose, R-Monongalia, the bill’s lead sponsor, said the proposed amendment to the state Constitution also eliminates the personal property tax rebate system and provides revenue guarantees to county commissions.
Rose said the vehicle tax rebate system has proven to be too complicated, and if passed by voters, it would be eliminated. The law turned what is arguably the most hated tax in the state into a confusing two-payment system to qualify for a rebate.
“This would get rid of the process where people have to go through a rebate on their vehicle taxes,” Rose told WAJR News. “People have found that to be a very complicated process and very cumbersome.”
Rose said the assessment process wouldn’t change; however, any bill for inventory tax would be sent to the state to make whole.
“The county assessors will still assess the property as is; nothing changes on that end,” Rose said. “The only difference is instead of billing the business or an individual resident, the state will pay that instead.”
The measure specifies “revenue replacement” for school districts and county governments by saying in part, “To offset any revenue loss to counties, municipalities, and school districts resulting from the elimination of the business inventory tax, the Legislature shall provide for alternative funding mechanisms or adjustments in state aid allocation.”
The legislation requires the state to pay the lost revenue but does not specify where the funds shall come from.
But what it does not give him the flexibility to do is choose to pay the county or not,” Rose said. “No matter how the state wants to pay it, the state has to give the county the amount of money they would have received if the previous tax structure were in place.”
Rose said these are the kinds of policies that will keep economic development and job growth in the state robust.
“When you hear President Trump talking about bringing data centers, AI, and manufacturing back to the United States, this will make us more competitive with Ohio and Kentucky, who do not have these taxes in their constitution,” Rose said. “This will help us win the Backyard Brawl.”
The resolution has been approved by the Senate Judiciary Committee and been sent to the Senate Finance Committee.