CLARKSBURG, W.Va. (WBOY) — One of, if not the most controversial ballot items for the upcoming West Virginia General Election is Amendment 2.
It would give the West Virginia Legislature the authority to exempt machinery, equipment and inventory directly used in business activity and personal property tax on motor vehicles from ad valorem property taxation from West Virginia’s tangible personal property tax.
As an analysis from the Tax Foundation pointed out, the passage of the amendment alone would not immediately cut taxes. After its passage, the West Virginia Legislature would need to create the reforms in a bill or series of bills, which would need to pass through the West Virginia House of Delegates and Senate and either be signed by Gov. Jim Justice, or, if he were to veto legislation, the veto would need to be overridden by the West Virginia House of Delegates and Senate before the bill or bills become law.
The West Virginia Senate Finance Committee has been drafting plans for bills to pass if Amendment 2 passes and the West Virginia Legislature passes legislation repealing the personal property tax in the categories below:
- Machinery and equipment, including tools.
- Furniture and fixtures, including office desks, chairs/sofas, shelving, lights, etc.
- Leasehold investments, defined as modifying a rental property you do not own to suit your needs by outfitting the property to meet your business needs.
- Computer equipment.
- Inventory, including finished/manufactured products, automobile lots, and retail inventory.
- Vehicles, including personal motor vehicles, trucks, vans, ATVs, and motorcycles, but not airplanes, boats, and non-roadway vehicles.
As of the Oct. 14 draft, the plans included replacing county revenue with general revenue and cutting state income tax.
The document was published for informational purposes only by the Legislature, with the caveat that none of the figures should be considered final.