Members of the Putnam County Commission approved a resolution supporting Amendment 2, which would give legislators the power to exempt some personal property taxes.
In doing so, the commission deviates with organizations around the state representing local governments. Berkeley County also has passed a resolution in support of the amendment.
“The Putnam County Commission supports the passage of Amendment 2 and urges that any tax relief adopted by the Legislature ensures that county budgets are not negatively impacted,” the resolution stated.
State lawmakers have long talked about having more flexibility with property taxes, particularly those that 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.
Property taxes are a main piece of how counties pay for services like school systems, ambulance services, libraries and more.
Boards of the West Virginia Association of Counties and the County Commissioners Association of West Virginia voted to oppose Amendment 2, the “Property Tax Modernization Amendment.” The first group represents county assessors, circuit clerks, county clerks, prosecutors and sheriffs.
The groups cited loss of authority over about $550 million in “dedicated, constitutionally-protected revenues” — and “handing that money to the Legislature.” They also expressed concern over lack of consensus among the Senate, House and governor about a solid plan to make up revenue to the local governments.
Senate leaders have suggested money from the state would more than make up for what counties give up in property taxes. That could pay for expenses that local governments now struggle to meet, including jail bills.
“It’s a tax cut and a backfill,” Senate Finance Chairman Eric Tarr, R-Putnam, told the commissioners in his home county today. “This is more money going forward for the people of Putnam County that comes in from the state’s coffers and less money directly out of their pockets, and it’s significantly a growth mechanism for small businesses.”
Tarr succeeded in persuading the Putnam Commissioners to support the resolution, just as Senate President Craig Blair earlier did in his home county, Berkeley.
House Speaker Roger Hanshaw, R-Clay, expressed support for such statements.
“I think it’s an interesting observation that Berkeley County and Putnam County have taken that action to support the amendment,” Hanshaw said today on MetroNews’ “Talkline.”
“Why that really is interesting is, they’re two of the counties that are actually growing in the amount of taxes paid for business, equipment and inventory. So when you look across the spectrum of the 55 counties, the overwhelming majority of the counties are actually collecting less and less of that tax.”
.@SpeakerHanshaw reacts to the Putnam County Commission coming out and supporting Amendment Two. Speaker Hanshaw joins @HoppyKercheval. WATCH: https://t.co/yCFQ3nDJuy pic.twitter.com/VdywO3oRwZ
— MetroNews (@WVMetroNews) October 11, 2022