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Committee backs constitutional amendment allowing legislature to reduce/eliminate auto and personal-property ad valorem tax if counties are made whole
Summary
A committee substitute for Senate Joint Resolution 6 would, if approved by voters, add a constitutional provision allowing the Legislature to reduce or eliminate ad valorem taxes on automobiles and other personal property but require equal-or-greater revenue sharing to any counties or localities harmed by the change.
The Senate Judiciary Committee considered a committee substitute for Senate Joint Resolution 6 that proposes a constitutional amendment giving the Legislature the authority to reduce or eliminate the ad valorem tax on automobiles and other personal property, while requiring that the state provide an equal or greater revenue share to counties or localities affected by any reduction.
Committee counsel summarized the substitute: "A constitutional amendment that would add a new section to the Constitution of West Virginia ... providing that the Legislature may reduce or eliminate the ad valorem tax on automobiles and any other personal property, but must also provide an equal or greater revenue share to those counties or localities impacted by any associated reduction or elimination of these taxes." Counsel noted the joint resolution has a second reference to the Committee on Finance.
Witnesses addressed economic and administrative implications. Bill Bissett, president of the West Virginia Manufacturers Association, told the panel manufacturers and prospective employers raise the business-inventory tax when considering investment, and that neighboring states' lack of a comparable inventory tax is a competitive disadvantage. "It sounds like it could be a barrier to entry and a barrier just to staying in the state," Bissett said.
Committee members debated ballot language, voter confusion, and protecting county revenue. Several senators stressed simplifying the amendment text and ensuring the ballot summary is clear; counsel noted the statutory process requires the Legislature to provide a title and summary for a proposed constitutional amendment and that the Secretary of State prints the question on the ballot.
A string of committee votes followed: the committee substitute for SJR 6 was agreed to in committee and the committee voted to report the substitute to the full Senate with the recommendation that it be adopted; the committee also directed that the joint resolution, under the original double reference, be sent first to Finance for further consideration.
If adopted by the Legislature and approved by voters, the amendment would create constitutional authority for future legislatures to reduce or eliminate the specified ad valorem taxes while requiring reimbursement or revenue-sharing to offset county losses.
