Some monetary relief could soon be made available to car owners in West Virginia. Gov. Jim Justice, this week, introduced a proposal that offers a vehicle tax rebate to West Virginia residents and businesses. Along with providing a rebate, another key objective of this proposal is to thwart support for Amendment 2.
Vehicle Tax Rebate To West Virginia Residents And Businesses: What Is It?
On Tuesday, Gov. Justice announced a proposal that can effectively eliminate personal property taxes on vehicles by providing a rebate to eligible residents and businesses. The proposal, called the Car and All Vehicles Tax Elimination and Protection of Local Government Act, would return the taxes on certain vehicles.
Q3 2022 hedge fund letters, conferences and more
As per the proposal, all residents and businesses owning vehicles would get a “full dollar-for-dollar” rebate on vehicle tangible personal property taxes paid to the counties this year and “every year going forward.”
The vehicle tax rebate to West Virginia residents and businesses, if approved, will be paid out of the state’s General Revenue Fund to ensure it doesn’t impact the property tax revenues of the counties.
What Gov. Justice emphasized is that the proposal would be able to return taxes without amending the West Virginia Constitution, as proposed by Amendment 2.
“Today I am proposing legislation to get rid of the car tax immediately without amending our Constitution,” Gov. Justice said in a press release. “This means you can vote no on Amendment 2 and still get rid of the car tax."
Will Vehicle Rebate Thwart Amendment 2?
Amendment 2, if approved, would allow lawmakers to reduce or eliminate six categories of tangible personal property taxes, including vehicles. Republicans in the state Senate have already come up with a bill that could eliminate tangible personal property taxes starting July 2023.
“The Senate is using the car tax as bait. Don’t take it….By voting for Amendment 2 you are giving hundreds of millions of dollars and massive control to Charleston and giving big companies big tax breaks,” Gov. Justice said.
Senate President Craig Blair, on Tuesday, said the proposal makes no sense as residents will first have to pay their vehicle taxes upfront and then get it reimbursed later. Blair also argued that the rebate would increase the burden on the tax department.
“If this is a rebate, it makes zero sense. If I’m a taxpayer, why would I want to go into this nightmare,” Blair said, speaking in his office at the Capitol. “You’re going to have to fill out a form to get a rebate on a tax you already paid.”
On the other hand, Revenue Department Secretary Dave Hardy said that the tax department is prepared to process vehicle tax rebates to West Virginia residents. Further, Hardy informed that the application process could be online or by paper, but either way, it would be a simple process taking about 5 to 10 minutes.
