WEST virginia legislature

2025 regular session

Introduced

Senate Joint Resolution 6

By Senators Rose, Thorne, Taylor, Helton, and Rucker

[Introduced February 14, 2025; referred

 to the Committee on the Judiciary; and then to the Committee on Finance]

Proposing an amendment to the Constitution of West Virginia, amending article X thereof, by adding thereto a new section, designated section 1a, relating to the elimination of the taxation of business inventory; numbering and designating such proposed amendment; and providing a summarized statement of the purpose of such proposed amendment.

Resolved by the Legislature of West Virginia, two thirds of the members elected to each house agreeing thereto:

That the question of ratification or rejection of an amendment to the Constitution of the State of West Virginia be submitted to the voters of the state at the next general election to be held in the year 2026, which proposed amendment is that article X thereof be amended by adding thereto a new section, designated section 1a, to read as follows:

ARTICLE X. TAXATION AND FINANCE.

§1a. Elimination of Business Inventory Tax.

(a) Prohibition on Taxation of Business Inventory. - The State of West Virginia shall not impose an ad valorem tax on tangible business inventory held for sale, manufacturing, or processing. Herein, "tangible business inventory" includes all goods, materials, and products owned by a business, regardless of whether they are in raw, work-in-process, or finished form, and are intended for sale or further manufacturing within the state.

(b) Effective Date. - This amendment shall become effective upon the ratification by the voters of West Virginia. The Legislature shall enact laws to implement this amendment in a manner that ensures a smooth transition without undue financial burden to local governments, possibly through adjustments in other tax revenues or state funding.

(c) Revenue Replacement. - To offset any revenue loss to counties, municipalities, and school districts resulting from the elimination of the business inventory tax, the Legislature shall provide for alternative funding mechanisms or adjustments in state aid allocation.

(d) Local Government Adjustments. - Local governments may adjust their tax policies within the bounds of the state law and this amendment to maintain fiscal stability.

Resolved further, That in accordance with the provisions of article eleven, chapter three of the Code of West Virginia, 1931, as amended, such amendment is hereby numbered "Amendment 1" and designated as the "Elimination of Business Inventory Tax" and the purpose of the proposed amendment is summarized as follows: "The purpose of this amendment is to eliminate the current tax on business inventory."

NOTE: The purpose of this amendment is to eliminate the current tax on business inventory.

Strike-throughs indicate language that would be stricken from a heading or the present law and underscoring indicates new language that would be added.