West Virginia 2024 Regular Session

West Virginia House Bill HJR29

Introduced
2/13/24  

Caption

Authorizing the Legislature to exempt tangible inventory personal property directly used in business activity from ad valorem property taxation by general law

Impact

If approved, HJR29 would significantly alter the landscape of property taxes as they relate to businesses. Currently, businesses are subject to ad valorem taxes based on the assessed value of their personal property, including inventory. By exempting this type of property from taxation, proponents argue that it would drive greater economic development, encourage business expansion, and possibly lead to job creation. This legislative change would particularly benefit manufacturers and retailers, that carry a large volume of inventory, reducing their tax liabilities and operational costs.

Summary

House Joint Resolution 29 (HJR29) proposes an amendment to the West Virginia Constitution that would authorize the Legislature to exempt tangible inventory personal property directly used in business activity from ad valorem property taxation. The goal of this amendment is to facilitate a more business-friendly environment by alleviating the tax burden associated with holding inventory for companies operating within the state. This initiative aims to enhance the economic viability of local businesses by reducing costs and encouraging investment in tangible assets necessary for operations.

Sentiment

The sentiment regarding HJR29 appears to be generally positive among business groups and economic development advocates, who see the exemption as a logical approach to stimulate growth and competitiveness within West Virginia. However, there may be concerns among those who believe this could lead to a reduction in tax revenue for local governments, as businesses would contribute less to local funding through property taxes. This perspective raises concerns about the potential implications for public services and budgeting at the municipal level.

Contention

Notable points of contention surrounding HJR29 include the equity of tax burdens across different sectors of the economy and the potential long-term fiscal impacts. Opponents may argue that exempting inventory from property taxes could disproportionately benefit larger businesses, while smaller, locally-owned enterprises could feel the adverse effects of diminished public services funded through these taxes. Thus, the debate centers not just on the potential economic benefits but also on the principles of fairness and fiscal sustainability within the state's tax system.

Companion Bills

No companion bills found.

Previously Filed As

WV HJR13

Repealing the business and inventory ad valorem tangible personal property tax.

WV SJR2

Disabled Veterans' Exemption from Ad Valorem Property Taxation Amendment

WV SB149

Exempting certain organizations from property taxation

WV SB606

Exempting ad valorem property tax on property used for divine worship, educational, and charitable purposes

WV HB2047

Exempting motor vehicles from personal property tax

WV HB2115

Exempting law-enforcement officers from payment of income and personal property taxes

WV HJR8

Disabled Veteran’s Property Tax Exemption Amendment

WV HB2156

Exempting firefighters and volunteer firefighters from payment of income and real and personal property taxes

WV HJR16

Manufacturing inventory and equipment tax exemption amendment

WV HB2295

To implement a Property Tax Poverty Exemption - School Excess Levy

Similar Bills

CA AB2013

Property taxation: new construction: damaged or destroyed property.

CA AB1500

Property taxation: application of base year value: disaster relief.

CA AB245

Property taxation: application of base year value: disaster relief.

DC B25-0486

Uniform Community Property Disposition at Death Act of 2023

CA SB964

Property tax: tax-defaulted property sales.

CA SB603

Property taxation: transfer of base year value: disaster relief.

CA SB1091

Property taxation: transfer of base year value: disaster relief.

HI HB1398

Relating To Property.