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HB 3492

Relating to municipal economic opportunity development districts.

2025 Regular Session Introduced by Michael Amos and 6 co-sponsors

HB 3492 authorizes two WV municipalities to levy a district excise tax on sales within defined economic opportunity districts to fund local development, with specifics set by each

Chapter 188, Acts, Regular Session, 2025
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Bill Summary · HB 3492

HB 3492 — Summary (2025 Regular Session, Chapter 188)

Title: Relating to municipal economic opportunity development districts
Status: Enacted — Chapter 188, Acts, Regular Session, 2025 (Approved by Governor April 30, 2025)
Introduced: March 18, 2025

Purpose / Intent

HB 3492 authorizes specific West Virginia municipalities to levy a local special district excise tax on sales of tangible personal property and services within defined “economic opportunity development districts.” The authorization is intended to provide a local revenue tool to support economic development projects in those districts while protecting the State’s General Revenue Fund from adverse impacts.

Key provisions

  • Confirms the Legislature’s authority and need to expressly authorize municipal excise taxes for economic opportunity development districts (citing constitutional limits on municipal taxing power).
  • Grants express authorization to two municipalities to levy a special district excise tax:
    • City of South Charleston — for the “South Charleston Park Place Economic Opportunity Development District,” comprising up to 2,100 contiguous acres.
    • City of Huntington — for the “City of Huntington Economic Opportunity Development District,” comprising 146 acres.
  • States that no such excise tax may be levied by a municipality until the Legislature expressly authorizes the municipality and district boundaries are approved.
  • Explains legislative findings that case‑by‑case consideration is necessary to ensure special district excise taxes do not materially reduce the State’s General Revenue Fund.
  • The bill itself authorizes the levy but does not set a tax rate, duration, or implementation details — those would be set by the municipality under the authority granted and subject to applicable state law.

Who is affected

  • Municipal governments of Huntington and South Charleston (gain statutory authority to create a district-level excise tax).
  • Businesses and consumers within the authorized district boundaries (potential new excise tax on sales of tangible property and services).
  • State fiscal interests — potential diversion of sales tax receipts from state General Revenue depending on whether the tax is incremental or supplanting existing receipts.
  • Project developers and local economic development efforts (new local financing mechanism).

Procedural / timeline notes

  • Introduced March 18, 2025; passed both chambers (various committee actions and readings noted); House concurred in Senate amendment; sent to Governor April 22, 2025.
  • Approved by Governor April 30, 2025; recorded as Chapter 188, Acts, Regular Session, 2025.
  • After enactment, municipalities must take local legislative/administrative steps (e.g., ordinances, defining exact boundaries within the authorized acreages, setting tax rate and term) to implement a district excise tax.

Potential impacts / considerations

  • Enables targeted local funding for economic development projects in the named districts.
  • Could increase the cost of purchases in-district (depending on tax design), affecting consumers and retailers.
  • May shift some sales tax revenue away from state-level receipts if not fully incremental; the bill’s preamble underscores legislative concern about protecting the General Revenue Fund.
  • Implementation requires subsequent municipal action and administrative procedures to establish rates, collection, and distribution of revenues.

Sponsors / Sponsors of record

Primary sponsors listed in the document include Delegates Rohrbach, Criss, Hanshaw, among others; Senate and House actions show multiple co-sponsors and amendments during the legislative process.

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

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