West Virginia May Repeal Personal Property Taxes for Businesses

Robin Capehart served as the president of West Liberty University in West Virginia for eight years. Before Robin Capehart became the head of West Liberty, he led comprehensive tax reform efforts as the Secretary of the West Virginia Department of Tax and Revenue. Tax reform remains a major issue in West Virginia, with the newest proposal involving the repealing of personal property taxes for businesses in the state.

Recently, State Commerce Secretary Woody Thrasher and other government officials spoke out in support of a proposal to eliminate the personal property taxes that businesses are required to pay on various types of equipment and machinery. While the measure would require an amendment to the state’s constitution, a growing number of supporters are pushing for the change.

The proposed amendment would make West Virginia more appealing to business owners. Currently, Pennsylvania and Ohio have no such tax, and Virginia has put an exemption on machinery and equipment to benefit business owners. Individuals thinking about where to open a business may prefer these states because of lower taxation rates.

The downside of the repeal is that it could affect area schools. In 2016, the personal property taxes earned $589 million in revenue, a large portion of which when to county school boards.

In a recent appearance on Statewide Talkline, Capehart noted that such a proposal was a major part of the recommendations of Governor Underwood's Commission on Fair Taxation. However, Capehart told Talkline host, Hoppy Kercheval, that undertaking such a move should be done in the context of a revenue neutral, comprehensive tax reform package.