CHARLESTON, W.Va. -- State Republican lawmakers trotted out a familiar tax cut proposal Tuesday: The elimination of the "job-killing" tax on business equipment and inventory.
But this time, GOP leaders say the have a plan to make up for part of the tax revenues that schools county governments would lose following the cut.
Republican legislators plan to push for a bill that would place a portion revenues generated by the state's excise tax on natural gas drilling into a special "tax reduction fund." The money -- mostly generated by increased production in the Marcellus Shale -- would be used to help offset property tax losses to schools and counties.
"We can allow for these and other tax cuts and, at the same time, assist counties and school systems in making up revenues lost by these tax reforms," said House Minority Leader Tim Armstead, R-Kanawha. "Will it totally offset the losses? No."
Republican lawmakers introduced a bill to eliminate the business equipment and inventory tax last year, saying it discouraged companies from staying or locating in West Virginia. County commissioners and school officials railed against the proposal.
Armstead said the state's excise tax revenues are expected to double in the coming years because of the increase in natural gas production in the Marcellus Shale formation, which stretches through much of West Virginia.
"We are not imposing a new tax," Armstead said. "We're taking a portion of additional funding and putting it into the tax reduction fund."
Marcellus Shale tax revenues also could be used to offset pension income tax cuts for seniors, he said.
GOP leaders outlined their legislative agenda during a press conference at the state Capitol Tuesday. The 2012 regular legislative session begins today<co wed>.
Other priorities:
| Establish an intermediate court of appeals and an "automatic right of appeal." A proposal to set up the intermediate court -- in which circuit court litigants could file appeals before taking their case to the West Virginia Supreme Court -- failed last year. The state Supreme Court opposes creating an intermediate court.
CHARLESTON, W.Va. -- State Republican lawmakers trotted out a familiar tax cut proposal Tuesday: The elimination of the "job-killing" tax on business equipment and inventory.
But this time, GOP leaders say the have a plan to make up for part of the tax revenues that schools county governments would lose following the cut.
Republican legislators plan to push for a bill that would place a portion revenues generated by the state's excise tax on natural gas drilling into a special "tax reduction fund." The money -- mostly generated by increased production in the Marcellus Shale -- would be used to help offset property tax losses to schools and counties.
"We can allow for these and other tax cuts and, at the same time, assist counties and school systems in making up revenues lost by these tax reforms," said House Minority Leader Tim Armstead, R-Kanawha. "Will it totally offset the losses? No."
Republican lawmakers introduced a bill to eliminate the business equipment and inventory tax last year, saying it discouraged companies from staying or locating in West Virginia. County commissioners and school officials railed against the proposal.
Armstead said the state's excise tax revenues are expected to double in the coming years because of the increase in natural gas production in the Marcellus Shale formation, which stretches through much of West Virginia.
"We are not imposing a new tax," Armstead said. "We're taking a portion of additional funding and putting it into the tax reduction fund."
Marcellus Shale tax revenues also could be used to offset pension income tax cuts for seniors, he said.
GOP leaders outlined their legislative agenda during a press conference at the state Capitol Tuesday. The 2012 regular legislative session begins today<co wed>.
Other priorities:
| Establish an intermediate court of appeals and an "automatic right of appeal." A proposal to set up the intermediate court -- in which circuit court litigants could file appeals before taking their case to the West Virginia Supreme Court -- failed last year. The state Supreme Court opposes creating an intermediate court.
| Develop a well-trained, drug-free work force. Republican lawmakers didn't outline any specific proposals.
| Rolling back so-called "big government." GOP legislators want to repeal the West Virginia Energy Portfolio Act. They said the act, which requires electric utilities to own alternative and renewable energy resource credits, drives up customers' power bills and hinders job creation.
Republican lawmakers also want the state to opt out of the provisions mandated by President Obama's health-care reform law.
| "Opening the doors" of state government. Republicans want the public to have more access to government documents under West Virginia's Freedom of Information Act. They also want to change legislative rules to increase public hearings.
"People need to know how their tax dollars are being spent," Armstead said.
Republican leaders also said they would try again to pass legislation that requires welfare recipients to undergo drug testing. The House and Senate rejected similar proposals last year. Armstead said the legislation wasn't punitive.
"The bill is about trying to help families deal with a crisis," Armstead said. "It would identify people who need help."
Reach Eric Eyre at erice...@wvgazette.com or 304-348-4869.
