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SJR 12

Elimination of Business Inventory Tax Amendment

2026 Regular Session Introduced by Laura Chapman and 2 co-sponsors

Constitutional amendment proposal to eliminate West Virginia's business inventory tax, requiring voter approval and potentially reducing state and local government revenue without specified replacement funding sources.

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Bill Summary · SJR 12

Legislative bill overview

SJR 12 proposes a constitutional amendment to eliminate West Virginia's business inventory tax, a tax currently levied on goods held in stock by businesses. The amendment would require voter approval through a statewide referendum before taking effect. This represents a significant change to the state's tax structure and revenue collection system.

Why is this important

The business inventory tax generates revenue for West Virginia's state and local governments, so eliminating it would reduce available public funding unless replaced by alternative revenue sources. Businesses support this change as inventory taxes increase operational costs, but the fiscal impact on schools, roads, and services depends entirely on whether the state implements compensatory taxation or spending adjustments.

Potential points of contention

  • Revenue replacement: The bill does not specify how the state will replace lost tax revenue, creating uncertainty about impacts on education, infrastructure, and public services funding
  • Local vs. state impact: Business inventory taxes fund both state and local governments differently; eliminating the tax may disproportionately affect counties and municipalities that rely on this revenue
  • Competitive advantage claims: While proponents argue elimination attracts business investment, opponents may question whether the tax burden reduction meaningfully influences business location decisions compared to labor costs and infrastructure quality

Compiled from official sources — confirm details with the bill’s official record.

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