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CHARLESTON -- Leaders in the West Virginia Senate and House of Delegates gave members of the business community a preview Monday of legislation to help spur job creation and help businesses in the wake of COVID-19, as well as possible tax reform measures.
The Charleston Regional Chamber of Commerce held its annual Issues and Eggs breakfast virtually Monday due to coronavirus social distancing and health requirements.
The yearly event typically brings together state business leaders and members of the West Virginia Legislature just prior to the start of the 60-day session.
House Speaker Roger Hanshaw, R-Clay, said lawmakers are asking themselves how they can continue to make West Virginia an attractive state to locate a new business and how to get more West Virginians back to work.
"It's really that last question that drives what I think you're going to see to be the work of the legislature this session," Hanshaw said. "We know that the year 2020 will go down as a devastating year for so many of our businesses here in West Virginia. It's changed the way we think about life and work and business, and really society at large here in our state and really in our country and around the world in ways that are unlikely to be reversed."
Hanshaw said the House will roll out legislation to help shield businesses from liabilities due to COVID-19, invest in ways to make West Virginia a better place for remote workers to work from home, occupational licensing reform, making permanent some of the regulation rollbacks made possible by Gov. Jim Justice's pandemic executive orders and promote West Virginia as an outdoor recreation destination.
"We know that the most important step we can take to get businesses to locate in West Virginia and grow and expand here is to get people to come here for the first time," Hanshaw said. "We do that so well by our outdoor recreation opportunities. We will be following the Governor's lead and taking steps to raise the profile of tourism here in West Virginia. We are overall engaged in a program to attract remote workers here in West Virginia and increase our participation in the economy."
Senate President Craig Blair, R-Berkeley, said improving access to high-speed broadband internet is key to bringing more businesses to the state. Last year, Republican lawmakers pledged to provide $150 million over three years for broadband expansion projects. The Legislature will also look at removing regulatory hurdles to expanding fiber, wireless, and other delivery methods to consumers.
Hanshaw also expects the general revenue budget for fiscal year 2022 to come together quickly and remain similar to the budget approved last year. Seven months into the current fiscal year, the state has a $173.8 million year-to-date surplus and has recorded monthly surpluses every month except December.
Lawmakers are also considering taking another crack at putting a constitutional amendment on the ballot to give the Legislature the authority to make changes, or even phase out, the business and inventory tax on manufacturing machinery and equipment. Also on the table is potential legislation to phase out the personal income tax.
"We're all feverishly working on coming up with a tax reform proposal that I believe that's going to move the state forward. I'm very hopeful," said House Finance Committee Chairman Eric Householder, R-Berkeley. "If we want to improve ourselves against our neighboring states, we need to become more effective by lowering the personal income tax or eliminating the personal income tax."
Republican leaders have been mum about the details of how a personal income tax phase-out would work, as the tax brings in the lion's share of collections for the general revenue fund. But Blair said any phase-out would be revenue neutral and not result in tax increases on residents.
"When we go to doing this, it's going to be a net tax reduction, and that is very, very important that we drive that point home," Blair said. "We're not in the business of taxing our people more in this state, but what we need to do is make it so that our taxes are done in a fair and equitable manner and give back to the people that have been here in this state."