CHARLESTON, W.Va. The House of Delegates will now debate the $600 million tax relief plan passed by the Senate Wednesday unanimously.
On WAJR’s “Talk of the Town,” senator Mike Oliverio (R-Monongalia-13), and member of the Senate Finance Committee, said the plan includes relief for wage earners, taxpayers, and small businesses.
“Most folks will see about a 15 percent reduction in their state income tax,” Oliverio said. “The dreaded car tax, the personal property tax as it is referred to, the idea would be people could rebate on that money they pay and get that back.”
The plan passed by the senate includes components of Amendment 2, which was defeated by voters in the November election. Those components were added without making a constitutional change or requiring local governments to relinquish control, both of which Oliverio believes turned voters against Amendment 2.
“Small businesses that have tax that has to be paid on equipment, machinery, and inventory will receive a 50 percent reduction,” Oliverio said.
Great concern was expressed about establishing a legitimate tax cut that would not result in an increase later down the road. Oilverio said this plan was made possible by a flat budget over the last four years while revenue increased at the state level.
“That created this roughly $600 million that we believe we can affordably and responsibly return to the citizens in the form of these cuts and not do anything to damage state finances going forward,” Oliverio said.
Oliverio said the total budget is expected to be around $4.8 billion, and the plan equals a 12 percent reduction in taxes across the board. Those cuts, he said, will help border businesses fight off competition and provide a reason for residents to support local workers.
“We think that will help our small businesses be more competitive,” Oliverio said. “Sixty percent of our population lives in border counties, and we’re always trying to do things to help them be competitive with that business that is just miles away across the state line.”
Now, the plan will go to the House of Delegates, where Oliverio is confident it will be passed.
“I’ve met with members of the House of Delegates, and I think there’s good dialogue brewing, and hopefully we can get this across the finish line.”