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Justice-owned companies owe tangible personal property taxes

Gov. Jim Justice appears at an anti-Amendment 2 event in Mercer County Tuesday afternoon. (Photo courtesy of the WV Governor’s Office)

CHARLESTON — Gov. Jim Justice has been traveling around the state urging voters to reject a constitutional amendment that would give the West Virginia Legislature the power to exempt tangible personal property from taxation all while his companies owe thousands in back personal property taxes.

According to a search of online tax records with the sheriff’s departments in Wyoming and McDowell counties, Justice-owned Bluestone Coal Corp. owes more than $322,000 for delinquent personal property taxes going back to tax year 2020.

Records from the Wyoming County Sheriff’s Department show Bluestone owes $301,600 for tax year 2021.

That’s not counting what is due for tax year 2022, with half of $304,707 due by Wednesday, Nov. 30.

Bluestone owes McDowell County $10,505 in 2020 and $10,334 in 2021 according to records from the McDowell County Sheriff’s Department. For 2022 taxes, Bluestone has until Nov. 30 to pay half of $10,241.

Justice turned over management of his coal and agricultural businesses to his son Jay Justice after becoming governor in 2017, while daughter Jill Justice runs the Greenbrier Resort and related businesses. Bluestone Coal Corp. is one of 111 Justice-owned companies listed on the governor’s 2022 financial disclosure report filed with the West Virginia Ethics Commission, though it’s not one of the seven companies Justice placed in a blind trust.

Speaking Wednesday from his private office in the Capitol, Justice said he was unaware of the delinquent personal property taxes for Bluestone.

“I don’t know about it, but I can tell you that if there is anything delinquent to McDowell or Wyoming County … it will be paid absolutely in full immediately if that is the case. Now that you told me, I’ll call them and ask what’s going on here and everything. But I really don’t know.”

Tangible personal property taxes are at the crux of a fight between Justice and Republican lawmakers as voters head to the polls to vote on four constitutional amendments, including Amendment 2. If approved, Amendment 2 would amend the state Constitution to give the Legislature the authority to exempt six categories of tangible personal property taxes, including machinery and equipment, inventory, and motor vehicles.

If Amendment 2 is approved, that doesn’t mean the tangible personal property taxes would go away. Lawmakers would have to come back during the annual legislative session or a special session. Tangible personal property taxes make up about one-third of the total property taxes counties collect, according to a past analysis by the Tax Foundation. Revenue from these taxes goes to county governments, cities and school systems.

Justice was once a vocal supporter of eliminating the machinery, equipment and inventory tangible personal property taxes, having called for eliminating the taxes in State of the State addresses in 2018 and 2019. Justice has since switched to calling for a phase-out of the personal income tax, beginning with a 10% cut across all tax brackets.

The governor has spent the last two months traveling to cities across the state urging residents to vote against Amendment 2. Justice has often said his businesses would be the first to benefit from eliminating tangible personal property taxes.

“At the end of the day, if Amendment 2 passes, it will literally put millions of dollars in Jim Justice’s pocket … and Jim Justice is telling you don’t do it,” Justice said during his COVID-19 briefing from the Capitol Wednesday. “I didn’t sign up to get my property taxes cut. I didn’t sign up for a special perk for me. I didn’t sign up for anything I want. I signed up for you.”

Steven Allen Adams can be reached at sadams@newsandsentinel.com.

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