PARKERSBURG - Wood County Assesssor Rich Shaffer agrees with the state assessor's association that an increase in the Homestead Exemption is long overdue.

But he'd like to go a step farther and see the Legislature eliminate personal property tax as well.

"I think the increase in the Homestead Exemption is long overdue. It's hasn't been raised since it was introduced. We have had some other measures put in place to aid the elderly, but those have gotten so complicated and difficult to understand, especially for the elderly, who they are intended to benefit. It is something the Tax Modernization Committee has discussed. They want to streamline those other benefits, make them easier for the elderly to take advantage of," Shaffer said.

The West Virginia Tax Modernization Project work group continues its efforts. The 2006 effort resulted, among other things, in reduction of the food tax, elimination of the corporate license tax and reduction of the corporate net income tax, which began in 2007, from 9 percent to 6.5 percent in 2014.

"This year, the Tax Modernization Project participants will review the recommendations from the 2006 report that have been adopted, as well as those that we need to revisit," West Virginia State Tax Commissioner Christopher G. Morris said. "The tax modernization group will continue to explore changes that further simplify West Virginia's tax structure in order to move West Virginia forward on the path to fair, progressive taxation."

The state assessor's association favors raising the homestead to $30,000, but is not in favor of any other changes that would affect the current tax base, Shaffer noted.

"Some of the counties might be hurt by the change, some lack the revenues, where there is little employment opportunity and the younger population has left, " Shaffer said. The proposal to increase the homestead has become almost an annual note on the agenda, but doesn't get addressed and Shaffer isn't sure what, if anything, will happen this year.

"It's an election year, so it's hard to tell," he noted.

Under the Homestead Exemption, the first $20,000 of assessed value is exempted on the single-family, owner-occupied residence of the applicant. Those 65 and older and individuals who have a permanent disability are eligible to apply. The assessor's office has more than 9,000 exemptions on file.

Shaffer spoke before the Governor's Tax Modernization Committee at a November meeting in Charleston, urging legislators to eliminate the personal property tax.

"I think in order for this state to become business friendly we are going to have to eliminate personal property on inventory, machinery and equipment. We are only one of a few states that still has personal property tax. And on the automobiles, that is an area we get a lot of complaints from taxpayers about," Shaffer said. The assessor said doing away with personal property would reduce tax collections by about one-third, but he has a proposal to make up the difference.

The assessor is in favor of implementing a "value added tax," similar to ones used in Europe. "We will have to do something to cover the loss of revenue if we eliminate the personal property tax. A value added tax is about a 1-2 percent increase on the value of products and services. It's a broad-based tax. It taxes the service industry as well. It takes in businesses that are not currently being taxed. The corporate net income tax could be eliminated as well. The value added tax would generate enough to fund the schools and replace the corporate net income tax," Shaffer noted.

The schools currently receive the largest percentage of tax revenues, about 70 percent.

Value-added tax taxes the value added at each stage of production. In principle, value-added taxes apply to all commercial activities involving the production and distribution of goods and provision of services. VAT is assessed and collected on the value added to goods in each business transaction.

Shaffer would also like to see the levy rate for rental properties changed from Class III or IV to Class II residential. Right now, classification for rental properties equates to double the tax rate on those properties.

"Renters are probably the least able to pay more and the landlords have to recoup their costs and so pass it through in the rent," he noted.

Shaffer said he plans to attend the state committee's next meeting scheduled for Dec. 7 to speak out again for the changes.