HURRICANE, W.Va. (WSAZ) – Wednesday marked the primary day of the 2022 legislative session in West Virginia, and already some payments delivered to the desk are bringing issues with them.
“Since we don’t know if (enterprise and occupational tax) will change, that’s why we’re pausing proper now,” Hurricane Mayor Scott Edwards informed WSAZ. “We simply wish to be certain town is strong on a regular basis. We’re not the kind of authorities that desires to signal on the dotted line after which not make our bond funds.”
On Wednesday, lawmakers launched Senate Bill 132, which is aimed to eradicate municipalities’ enterprise and occupational, or B&O tax, inside a five-year interval. Because it stands, some cities have each a house rule, which is a 1% improve in gross sales tax that goes in direction of the cities, and B&O tax. Nonetheless, lawmakers say they’d relatively cities have one or the opposite — not each.
The town of Hurricane determined to pause their $10 million Hurricane Bridge Park challenge as they await what the Legislature will determine to do. The park would come with 4 baseball fields, an amphitheater, strolling trails and disc golf.
“It’s designed to attempt to create some aid on these companies as a result of, most of our companies are small companies they usually’re hurting proper now,” state Sen. Rollan Roberts, R-Raleigh County, stated. “So can we in some way work out how the house rule, that was made out there to all people final 12 months — can we make that one thing that there’s a trade-off? That’s what (was) alleged to occur initially, however it type of fell aside and it’s not nailed down in code.”
Roughly 40% of the Hurricane metropolis funds comes from town’s B&O taxes. Mayor Edwards additionally added that the 1% gross sales tax, or residence rule, that their metropolis additionally has, is already dedicated to paying off their new hearth division.
“So that you suppose, 40 to 50 p.c of the police division can be gone, 40 to 50 p.c of the firefighters, gone, 40 to 50 p.c of the folks on the road division gone,” Edwards stated.
Charleston Mayor Amy Goodwin informed WSAZ that roughly $42 million of their $100 million funds is made up of B&O taxes. She additionally stated their 1% gross sales tax is devoted to paying off pensions and different bond money owed.
“Proper now, (municipalities are) getting plenty of cash, that’s further, coming in with all of this infrastructure,” stated Senator Roberts. “Perhaps that is the important thing time to have the ability to make this crossover and see if we will do one thing that will stability all of it out and be higher in the long term.”
“We’ll nonetheless work in direction of Hurricane Bridge Park; we’ll do it slowly. It could take us ten or twelve years to get it performed, as an alternative of 1 12 months, however we’ll do it as we will,” Mayor Edwards informed WSAZ. “However we’re simply type of in a ready recreation proper now. We’re simply ready to see what the Legislature does. I hope they do the fitting factor and don’t minimize the funding sources for the cities.”
The invoice will now undergo the committees course of.
If it passes, cities would have 5 years to determine whether or not to maintain their 1% gross sales tax or preserve their B&O tax.
If you happen to’d wish to learn the invoice in full, faucet here.
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