CHARLESTON, W.Va. (WVVA) One of the biggest legislative priorities for the Republican leadership and Gov. Jim Justice, (R) West Virginia, died in the Senate on Tuesday.
A day after passing the bill by a majority, Senate lawmakers came up short of securing the needed two-thirds vote to place the measure on the ballot for voters in November.
The bill would eliminate three key taxes that they say are keeping businesses out of the Mountain State.
“If a company is making a decision about what state to locate in, this tax alone often prevents them from coming here,” said Sen. Chandler Swope, (R) Mercer County.
The bill would have phased out the property, inventory, and vehicle tax and increased the sales tax by half a cent and the tobacco tax to pay for the loss in revenue to counties.
“All we’re asking is to give voters a chance in November to say we’re for it,” explained Sen. Rollan Roberts, (R) Raleigh County, 9th Dist.
While supporters touted the legislation as critical to bringing in new business, opponents argued it would cripple county government.
It was the counties that won the day. Wyoming County Circuit Clerk David ‘Bugs’ Stover said it all came down to the uncertainty over the measure.
“I understand it’s not a good tax for business. It’s not. But we have it and the counties are hooked on it. It’s how we function to a large degree,” said Stover.
Under the bill, supporters of the legislation said counties would receive a ten percent increase to their revenue over the next ten years. But it was what would happen after that decade that was cause for concern among some.
“If the state ends up real poor in ten years and can’t match their own budget, they’re not going to send us money. And that’s what we’re afraid of,” said Stover.
The legislation was also a top priority for the West Virginia Chamber of Commerce. A spokesperson for the organization released the following statement after Tuesday’s vote:
“The West Virginia Chamber is disappointed that SJR 9 did not pass the Senate, and that the voters of West Virginia will not have the option to be heard on this important issue. Our sincere thanks to those in the Senate and the stakeholders that worked hard on this issue.”
