H. B. 2432
(By Delegate C. Miller)
[Introduced February 13, 2013; referred to the
Committee on Political Subdivisions then the Judiciary.]
A BILL to amend the Code of West Virginia, 1931, as amended, by
adding thereto a new section, designated §8-13-24, relating to
requiring that any new or increase to municipal taxes or fees
must be for a specific purpose; requiring that the revenue may
only be spent for that specific purpose;
providing a time
limitation with a renewal option;
and providing for a surplus.
Be it enacted by the Legislature of West Virginia:
That the Code of West Virginia, 1931, as amended, be amended
by adding thereto a new section, designated §8-13-24, to read as
ARTICLE 13. TAXATION AND FINANCE.
§8-13-24. Stated purposes for taxes and fees;
accounts; felony penalty; expiration and renewal;
_____(a) On the effective date of this section, any increase to the
rate or amount of an existing tax or fee or the assessment or the
imposition of a new tax or fee by a municipality pursuant to this
article or its charter shall contain a stated purpose in the
enacting legislation. If the revenue generated is for multiple
purposes, the enacting legislation must state those different
purposes and set forth the pro rata share for each purpose.
However, the enacting legislation may state its purpose as being
for general revenue if the reason why the increased general revenue
is necessary is also included.
_____(b) Revenues collected by the municipality pursuant to
subsection (a) of this section must be deposited in separate
special designated accounts and the funds from those accounts may
only be used for the purpose stated in the enacting legislation.
However, revenue collected as general revenue, or other purpose
that has an existing designated account separate from general
revenue, may continue to be placed in that account.
_____(c) Revenue collected and placed in the designated accounts
pursuant to subsection (b) of this section is held in trust for the
municipality. The wrongful or fraudulent use of those funds, other
than for the purpose stated in the enacting legislation, is an
embezzlement as identified in section twenty, article three,
chapter sixty-one of this code and the user of those funds is
subject to the felony penalty of that section.
_____(d) The tax or fee, or its increase, imposed by subsection (a)
of this section expires after two years. However, it may be
renewed by the municipality.
_____(e) Within thirty days of the expiration of a tax or fee
imposition or increase, and regardless of renewal, any surplus
money in a special designated account must be:
_____(1) Returned to the payers in a pro rata share;
_____(2) Kept in the special designated account upon affirmative
action of the municipality stating a specific purpose for the
_____(3) Transferred into a general revenue account upon
affirmative action of the municipality stating the reason why the
transfer is necessary.
NOTE: The purpose of this bill is to require that any new or
increased municipal taxes or fees must have a defined purpose. It
provides that the tax cannot last for more than two years but can
be renewed. Revenue generated must be spent in accordance with the
This section is new; therefore, it has been completely