BabyDog Justice / Photo courtesy of W.Va. Governor's Office

Justice announces legislation to eliminate car tax immediately without Amendment 2

CHARLESTON, WV – Gov. Jim Justice today announced the Car and All Vehicles Tax Elimination and Protection of Local Government Act, which would credit property taxes paid on certain vehicles back to taxpayers 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. “This means you can vote no on Amendment 2 and still get rid of the car tax. As soon as the House and Senate are ready to take this up, the bill is in their hands. It’s ready when they’re ready.

“The proponents of Amendment 2 claim that we must change our Constitution forever to eliminate the car tax. Not only is that untrue, it’s just plain deceptive. It can be done, and we have the way right here, without making a major amendment to our Constitution.

“The Senate is using the car tax as bait. Don’t take it. They’re trying to pull a fast one on you. You’re smarter than that. 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.

“Under my plan, each year, all West Virginians who own a vehicle would receive a full dollar-for-dollar refund for personal property taxes paid to the county Sheriff’s in 2022 and every year going forward. The refundable credit is paid from the West Virginia General Revenue Fund and does not in any way interfere with the property tax revenue stream guaranteed to local governments and school boards since 1932.

“My plan guarantees that our local first responders, counties, cities, and school boards keep their constitutionally guaranteed revenue while at the same time it allows WV taxpayers to share in this historic surplus. Call your legislator and tell them to vote for this and vote for it now.”

Each year, all West Virginians who own a vehicle would receive a tax credit, equal to the amount of tax paid on their vehicles. Pass-through entities and corporations would also be eligible to receive the credit. It applies retroactively to January 1, 2022.

View the bill here.

The bill authorizes a tax credit against the personal income tax, or the corporation net income tax, as applicable, in the amount of ad valorem property tax timely paid during the income tax taxable year on specified motor vehicles. The credit is retroactive to taxable years beginning on and after January 1, 2022.

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