I have been in business in West Virginia as a wholesale distributor for 26 years, and by calculation in just the last 10 years, I have paid in excess of $800,000 in taxes that I would not pay in most other states. West Virginia is one of a handful of states that impose a personal property tax on businesses for inventory, machinery, and equipment. Note the incongruity here – a PERSONAL tax is levied on BUSINESS property, regardless of whether that equipment is in use or sits idle. And that dynamic is mandated by our state Constitution.
Any effort to grow our business and reinvest in West Virginia must be weighed against the amount of personal property taxes we must pay each year. Those of us in business are right to feelpunished for making any capital investment because our tax burden will increase with every new piece of equipment or influx of inventory that we add to our roster.
Thankfully, West Virginia voters will have a chance to put our state on a path to tax modernization. Passage of Amendment 2 on the November 8 ballot will give the Legislature the ability to update our tax structure for both businesses and all West Virginians who own cars. It will allow them to exempt tangible machinery and equipment personal property directly used in business activity; to exempt personal property tax on motor vehicles; and exempt tangible inventory personal property directly used in business activity from ad valorem property taxation.
All of that sounds like a mouthful, but the short version is that Amendment 2 will allow the Legislature to bring our tax structure into the 21st Century and bring some long overdue fairness to businesses so we can grow our operations, employ more people, and make a bigger contribution to West Virginia beyond our tax bills. Best of all, this comes at a time when West Virginia enjoys the financial stability to help taxpayers.
One thing to remember about Amendment 2: Passage of Amendment 2 does NOT change any taxes. It merely takes the shackles off our elected lawmakers and allows them to start updating our tax code in ways the state constitution currently does not allow. Any changes to West Virginia’s personal property tax structure still will have to be debated and voted on during future legislative sessions. But Amendment 2 opens the door to true modernization so West Virginia taxpayers will be treated fairly and more similarly to those in other states.
In addition, Amendment 2 does not take a penny of revenue away from local governments. Change can be scary, but it also can be exhilarating. Exhilarating in the sense that other states have already experienced in new jobs, more tax revenue for local governments at a lower tax rate for all. West Virginia voters have the opportunity to embrace change and allow our elected legislators to chart a new course with a foundation in fairness.
Robert M. Sincavich
President
Team Sledd
100 East Cove Extension
Wheeling, WV 26003