CHARLESTON – The West Virginia Chamber of Commerce supports the passage of Amendment 2, saying it’s the most efficient way to eliminate the vehicle tax in West Virginia.
“West Virginia is currently sitting on a tremendous amount of money in the form of budget surpluses,” West Virginia Chamber of Commerce Steve Roberts said. “This means one thing: the government is collecting far more money from taxpayers than it needs to run its operations, and it’s time to return some of that money to the taxpayers who can better spend it and stimulate the economy.”
Currently, taxes on tangible personal property such as cars, trucks and ATVs are enshrined in the state’s constitution, meaning their collection is mandatory and not adjustable by elected officials.
Roberts
Amendment 2 would give the Legislature the authority to eliminate tangible personal property taxes on personal vehicles and business machinery, equipment and inventory.
“This is a tax on jobs,” Roberts said. “Neighboring states that our businesses compete with, like Ohio and Pennsylvania, don’t have this regressive tax.
“It’s pretty easy for companies and their jobs to go right across state lines to avoid it.”
Roberts said passage of this amendment would bring West Virginia into line with every other state in the country by allowing elected officials to make changes to these types of taxes.
“Every West Virginian who owns a vehicle knows that in order to legally register your vehicle you must pay the property tax on it,” he said. “The average in West Virginia is roughly $220 per vehicle per year, but can be significantly more than that based on the age and retail cost.
“Amendment 2 offers the Legislature the quickest and most efficient path to eliminate this burdensome tax and refund the counties directly. Passing Amendment 2 eliminates the need to collect the tax and provides an opportunity to reduce government bureaucracy.”
Republican legislative leaders also support the passage of Amendment 2. Republican Gov. Jim Justice, however, is touring the state asking residents to vote against it. Instead, he has introduced a proposal called the “Car and All Vehicle Tax and Elimination and Protection of Local Government Act.”
This alternative would give legislators the power to exempt personal property taxes on vehicles and on what businesses pay for inventory, equipment and machinery. It doesn’t eliminate the personal property taxes on vehicles, but it would pay those taxes back in the form of a rebate or credit toward state income taxes.
State Senate President Craig Blair (R-Berkeley) and House Speaker Roger Hanshaw (R-Clay) both have said Justice’s idea is too cumbersome.
“I think most of us share the view that we want to give some tax relief, and we’re in a time of historic budget surpluses in West Virginia,” Hanshaw said this week on WAJR Radio. “We expect that to continue for at least another couple of years, and we think it’s prudent to give some of that money back to the people.
“But I really think the proper way to do that is the simplest of the possible approaches, and that’s just to pass Amendment 2 and move on with a clean repeal of that tax.”
Democratic lawmakers support Justice’s idea.
“Inflation is real. People are hurting now,” Senate Minority Leader Stephen Baldwin and House Minority Leader Doug Skaff said in a statement. “We fully support eliminating the car tax to help our people. Democrats proposed this idea back in March of 2021.
“We are glad Governor Justice is with us in eliminating the car tax. Why wait any longer? Let’s do it now. We call on the WVGOP to join us in providing immediate tax relief for the people in a special session.”
The general election is November 8.
