Photo Courtesy of W.Va. Governor’s Office - Gov. Jim Justice addresses the crowd Thursday at West Virginia Independence Hall in Wheeling about his opposition to Amendment 2.

WHEELING – West Virginia Gov. Jim Justice says it’s time to “get serious” and think about what might happen if Amendment 2, “The Property Tax Modernization Amendment,” passes in next week’s general election.

If approved, the measure would give the West Virginia Legislature authority to exempt machines and equipment directly used in business activity from state property taxes. It also would give state lawmakers permission to eliminate vehicle property tax on personal vehicles.

Justice on Thursday was in Wheeling for the second time on his tour around the state to voice his opposition to Amendment 2 at a gathering at West Virginia Independence Hall. Wheeling was his first stop on that tour on Sept. 23.

During that first visit, he spoke in Centre Market and brought with him his popular English bulldog, Babydog. Yet Babydog didn’t make the trip to Wheeling on Thursday. Justice explained he made the decision to leave her at home so the focus would be on his words.

“While I love to see you smile, and I love to see you laugh, this is such serious stuff that it is really off the chart,” Justice said. “But for this moment, I want you to be very, very serious with me.

“You’ve got an amendment on the ballot that could really turn us upside down.”

Passage of the amendment would give the legislature control over $515 million of property tax revenue, or 27% of total property tax revenue in the state, according to information provided by the West Virginia Center on Budget and Policy.

Republican leaders in the Legislature, such as Senate President Craig Blair, R-Berkeley, and House of Delegates Speaker Roger Hanshaw, R-Clay, back the amendment. They say its passage will be a significant step in starting significant tax reform in West Virginia.

No plan has been set forth by state lawmakers, but it is believed local governments would have to apply to the legislature to receive the funding they presently expect each year. Representatives of local entities whose funding would be affected were among those attending Justice’s address on Thursday.

Wheeling Mayor Glenn Elliott explained passage of Amendment 2 would deeply affect tax increment financing (TIF) funds the city uses for economic development.

“There is no guarantee the city will be made whole if the (business) personal property tax is repealed,” Elliott said. “That’s too big of a concern for us, because we don’t see any legislation on the flip side to make us whole.

“The Legislature is asking us to trust them to make us whole. But the last couple of years, we haven’t seen a Legislature that is interested in giving cities the tools to foster economic development. They are taking power away from cities, so we’re not in the position to trust them right now.”

Wheeling Fire Chief Jim Blazier said he “was unsure” about his position on the amendment prior to listening to Justice’s comments Thursday.

“I have important information I didn’t have before,” he said. “Absolutely, local entities that rely on property tax dollars could be negatively impacted.”

Ohio County Sheriff Tom Howard agreed if local entities don’t get the money from the state they presently are guaranteed “it will affect everybody.”

“There is nothing in writing and this will hurt,” he said. “And you know if you don’t have the money to fund the shop, you have to cut something. I’m all in favor of cutting taxes, but I’m not in favor of cutting them through the constitution.”

County Commissioner Zach Abraham noted there we be no immediate impact upon Ohio County by the immediate passage of Amendment 2, as it only gives the Legislature “authority” to make changes in the tax system.

“It would all depend on how the legislation is crafted,” he continued. “Depending on how it is handled there could be a negative impact.

“There is a need for change, and how it gets done is important.”

Abraham said he hopes voters have “a clear head” when they go to the polls, and take the ideas presented by both sides into consideration.

“Citizens should do research before they go to the polls, and make up their own mind,” he added.

Justice was joined in Wheeling by Dave Hardy, cabinet secretary of the West Virginia Department of Revenue. They explained that when Justice came into office, the state budget was showing a nearly $700 million deficit. Presently, the state’s surplus is at $1.38 billion, according to Hardy.

“But if you believe that will go on forever, you’re just flat nuts,” Justice added. “When does it always stay the same and always be good? Not in my world.”

He continued to push his own plan to reduce the state’s income tax by 10%, which he said would put $270 million back into taxpayer’s hands. His measure to cut the income tax passed the House of Delegates during a recent special session of the Legislature, but was not addressed in the Senate whose leaders are instead advocating for the passage of Amendment 2.

Justice on Thursday also promised to get rid of the state’s property vehicle tax if Amendment 2 isn’t passed.

“Let’s take it off the table,” he said. “We can rebate your money tomorrow, and it goes away.”