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W.Va. taxes, gas, fees to increase

CHARLESTON, W.Va. — West Virginia residents will be paying more in vehicle fees and the cost of gasoline will also rise starting July 1.

Gov. Jim Justice signed House Bill 1006 Thursday, raising more money for the State Road Fund, with about $140 million a year projected to be raised through the new fee and tax hikes.

The cost of gasoline will rise by 3½ cents a gallon, bringing in about $60 million a year; the tax on purchasing a motor vehicle will increase from 5 percent to 6 percent and will raise $40 million a year; vehicle registration fees will increase from $28.50 to $50, raking in an extra $28 million annually; and several other DMV fee hikes will bring in another $12 million a year.

Del. Marty Gearheart, R-Mercer County, did not support the bill and fought to at least tie the hike in the gasoline tax to a bond referendum that is coming up in October.

If passed, that referendum could mean about $2.8 billion raised in bonds to finance major road projects in the state.

“I offered to remove the gas tax by amendment,” he said. “Of all the tax hikes (in the bill) that is the most heinous on the economy” and obvious to people and detrimental to businesses.

With Gearheart’s amendment, the gas tax would not have been enacted unless the bond referendum passes and then it could be used as a funding mechanism to pay off the bonds.

The tax hike would then, in essence, be approved by voters, he added. The referendum is set to be held Oct. 7, depending on the Governor’s approval of that date.

“But we lost 47 to 42,” he said of the vote on his amendment. “We got close. But it didn’t go my way. We have put the cart before the horse. Now, all of that (tax and fee hikes) will become effective July 1.”

Gearheart said these hikes could be used as funding mechanisms for the bond referendum if it passes, but not necessarily.

“No one knows for sure,” he said. “The Governor could get other funding sources.”

Gearheart also said that retailers increase the price per gallon after the state does, so people should expect to see an overall 7 to 9 cents per gallon hike.

Although the state budget passed by both the House and Senate did not have the tax increases Justice wanted, Gearheart said with the bill to add dollars to the State Road Fund and the bill that has passed to extend the turnpike tolls, the Governor basically got $230 million in extra revenue (the turnpike tolls were set to end in 2019 and they bring in $90 million a year).

“I’m upset about it,” he said. “I believe we did the wrong thing.”

Gearheart was also upset with some fellow Republicans.

“There was not a Republican majority on either bill,” he said. “We ceded our majority and allowed them (both bills) to pass.”

Gearheart also said he doesn’t know how the new money for roads, whether it’s from the State Road Fund or the bond referendum, will impact the King Coal Highway construction.

The $50 million project to extend the so-called “bridge to nowhere” in Bluefield to the Airport Road area is already included in the six-year plan.

But Del. Ed Evans, D-McDowell County, supported the bill for the State Road Fund and to extend the turnpike tolls.

“I’m extremely happy the Governor signed that,” he said of the road fund bill. “The number of jobs that will come from that (as well as the bond referendum if it passes) is predicted to be about 48,000. I hope some of those are here.”

Evans said he is okay with the tax increases and he hopes the King Coal Highway will see work soon.

“I certainly hope they start working on it right away,” he said. “According to the Governor, there are 500 projects … ready to go. My understanding is that they will start work on some of those right away.”

But he said he is not aware of the time frame involved in any of the work.

Evans said road projects, as well as repair and maintenance, are crucial to the state, especially this region.

Bringing in roads like King Coal and the Coalfield Expressway will open up the region, he said.

“It (building those new roads) would absolutely be a game changer for this region,” he said. “We have to have people coming through these counties.”

Evans has also been a supporter of keeping the turnpike tolls and increasing tolls, but wants the option to purchase an EZ Pass for $8 a year.

Part of the Governor’s overall plan for the tolls is to double them for passenger cars and increase commercial tolls as well. But motorists (passenger cars) could buy an EZ Pass once a year for $8 and use the turnpike as often as they want.

— Contact Charles Boothe at [email protected]

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