HOUSE CONCURRENT RESOLUTION NO. 98

(By Delegates Guthrie, Reynolds, Manchin, Marshall, Iaquinta, Moye, D. Poling and Williams)

Requesting the Joint Committee on Government and Finance to study the feasibility of obtaining a waiver of the federal requirement relating to state/federal matching highway funds based on a proposed funding model; and to study the impact of increasing state sales and use tax to twelve percent and exempting food, clothing, prescription medicines, gasoline and special fuels from tax; and designating three percent of sales and use tax revenues to be used for highways and bridges and three percent of the revenues to be used for community and economic development as directed by the Legislature.

    Whereas, The Legislature recognizes that adequate funding must be sought to maintain and expand the state’s system of highways and bridges, and to provide for economic and community development; and

    Whereas, The Legislature wishes to explore the impact of increasing sales and use taxes, exempting certain classes of goods and services from those increased taxes and dedicating anticipated revenue increases to highways and bridges and economic and community development; and

    Whereas, The reliance of the state on a funding model of dedicating a certain allocation of tax money to roads and bridges may allow the state to gain a waiver of the federal highways matching funds requirements in order to obtain federal funds available for state highway and bridge construction and repair; therefore, be it

    Resolved by the Legislature of West Virginia:

    That the Joint Committee on Government and Finance is hereby requested to study a new funding model which would increase sales and use taxes in West Virginia to twelve percent, exempt food, clothing, prescription medicines, gasoline and special fuels from sales tax; and dedicate three percent of the sales and use tax revenue to be used for highways and bridges and three percent to be used for community and economic development as appropriated by the Legislature; and, be it

    Further Resolved, That the Joint Committee on Government and Finance is also requested to study the possibility of obtaining a waiver from the federal government of the state’s required participation in matching funds in order to obtain federal highway funds, contingent on adopting the proposed funding model; and, be it

    Further Resolved, That the Joint Committee on Government and Finance report to the regular session of the Legislature, 2014, on its findings, conclusions and recommendations, together with drafts of any legislation necessary to effectuate its recommendations; and, be it

    Further Resolved, That the expenses necessary to conduct this study, to prepare a report and to draft necessary legislation be paid from legislative appropriations to the Joint Committee on Government and Finance.