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CHARLESTON, W. Va.–West Virginia voters are months away from considering a constitutional amendment that could allow legislators to make changes to property tax rates, but county leaders across the state are already calculating how local budgets could be affected.
Senate Finance Chairman Eric Tarr, R-Putnam, sent a letter last month to county assessors and sheriffs asking for specific numbers on the kinds of property subject to the tax, particularly motor vehicles and business machinery, equipment and inventory.
“The Legislature is aware of the importance of this revenue to local governments,” Tarr wrote. “The Legislature is evaluating the amount of revenue required to replace the subsequent tax cut should the Legislature choose to eliminate those taxes.”
Property taxes have been defined in the state Constitution since the early 1930s. Most of the money from personal property tax goes to county school boards, county commissions and municipalities.
Lawmakers have long talked about having more flexibility, particularly with the property taxes businesses pay on equipment and inventory. Last year, lawmakers passed a resolution that could allow changes on personal property tax rates.
Because it’s a constitutional issue, West Virginia voters have say-so on the matter through General Election ballots next fall.
“As the referendum on the November ballot approaches, the Legislature is preparing for the potential passage of Amendment No. 1,” Tarr wrote. “As I am sure you are keenly aware, should that amendment pass, the Legislature will have the ability to eliminate the tax on machinery and equipment used directly in the operation of a business and personal automobiles, as well as a strong mandate from the citizens of the state to eliminate these taxes.”
County government leaders are definitely aware, and many have provided warnings that budgets for local services are so dependent on property taxes that they could be in a deep bind if state lawmakers don’t provide alternative means. State legislators have not yet specified what that alternative might be.