Miley: Inventory Tax repeal won’t pass the House

CHARLESTON, W.Va. — It looks like one of Governor Jim Justice’s proposals, a phase out of the business inventory tax over seven years starting in 2020, is in trouble at the State Capitol with just a few weeks left in the 2018 Regular Legislative Session.

“Nothing’s dead until the 60th day but, right now, this minute, there’s no possibility that that inventory tax would pass, in my opinion,” said House Minority Leader Tim Miley (D-Harrison, 48) on Thursday’s MetroNews “Talkline.”

The phase out would require a statewide vote on a Constitutional Amendment after votes of two-thirds from both the state Senate and state House of Delegates.

In the House, Republicans hold a majority of 64-36. The two-thirds threshold for resolution passage is 67.

Not all Republicans are expected to support the elimination and, Miley said, his Democratic caucus is united against the repeal.

Earlier this week on the House floor, Miley pledged not to back the measure when the state worker pay raise was kept at “2-1-1-1” levels, starting with two percent more next year for teachers, school service workers and State Police despite efforts to take it higher.

Miley said he could not justify to his constituents more tax cuts for businesses, adding to those for corporate net taxes and business franchise taxes in recent years, while state workers struggled.

The tax at issue is the property tax business owners pay on industrial equipment, machinery and inventory.

West Virginia is one of seven states with property taxes on manufacturing inventory and one of 14 states with property taxes on business inventory.