Local News

W.Va. Chamber meets with local leaders and business representatives on Amendment 2

PARKERSBURG --State and local leaders and manufacturers gathered in the Parkersburg Municipal Building to speak about Amendment 2 on Tuesday.

Rebecca McPhail, president of the West Virginia Manufacturers Association, led the meeting. She said it was time to get out into the community and talk with others about the importance of Amendment 2, the issue on the upcoming general election ballot that would give the Legislature the ability to reduce or eliminate six categories of tangible personal property tax. McPhail said the association believes in tax reform and the conversation needs to include machinery and equipment property tax.

"That's the tax we pay on our inventory, machinery and equipment, that is quite frankly out of step with not only the states who we directly compete (with) for manufacturing investment, but largely the entire rest of the country," she said.

McPhail said it is also a chance to repeal tax on vehicles, "which affects every West Virginian, our seniors, our working families and anybody that's driving to and from their job," she said.

McPhail handed off the conversation off to Steve Roberts, president of the West Virginia Chamber of Commerce.

"We have heard for years and years and years that the way West Virginia taxes, inventory and equipment, is a real disincentive to reinvesting and growing in West Virginia," he said. "For goodness sakes, we need to reinvest and grow in West Virginia."

Roberts said other states have taken taxes like these out of their constitutions because legislators need the flexibility to move with the times and some policies aren't as appropriate as they once were. He said from time to time the West Virginia Constitution needs to be amended, and it would still require segregation and would not allow women to vote if it had not been amended in the past.

Roberts said the amendment does not take revenue away from any of the communities but sets the table for a new conversation about tax.

"And that's important to note because in 40 of West Virginia's counties, the equipment and inventory tax is a declining source of revenue, and in 10 of West Virginia's counties it is a flat source of revenue," he said.

Delegate Vernon Criss, R-Wood, said this opportunity will allow family and small businesses to have the same opportunities as larger businesses.

"We want the larger businesses to come -- we want to help them continue because we know that's where the jobs are going to be," he said. "We want to attract people to come back to this county."

Criss said he would like Amendment 2 to pass so they can have a conversation about tax reform in order to grow into the next era for West Virginia.

Roberts said West Virginia had around 130,000 manufacturing jobs at its peak, while it sits around 40,000 today.

"Our industry depends on the ability to invest in innovation and equipment that allows us to compete on a global economy now," said McPhail. "I think the Senate has tried to demonstrate in good faith that they are committed to making sure that our counties, municipalities and schools are fully funded and then some."

Parkersburg Mayor Tom Joyce said he does not feel remotely worried or have any fear that the Legislature has any intention of bankrupting counties, cities or boards of education.

"I think this is a big opportunity for the state of West Virginia, and certainly for our county," he said.

Vienna Mayor Randy Rapp commented on the tax discussion.

"If the Legislature touches our home rule sales tax, I'll give you the keys to the city, because that's $4 million out of an $11 million budget," he said. "We can't do it. That's the problem when you start talking about taking away the tax base that you have."

He said there will be no option but to cut services, because they will have to get rid of services to make their budget work.