The resolution proposes an amendment to the West Virginia Constitution aimed at eliminating the ad valorem tax on tangible business inventory. This amendment, designated as "Amendment 1," seeks to prohibit the state from imposing taxes on goods, materials, and products held by businesses for sale, manufacturing, or processing. The proposed amendment will be submitted to voters during the 2026 general election, and if ratified, it will take effect immediately. The Legislature is tasked with enacting laws to ensure a smooth transition and to mitigate any financial impact on local governments.

To address potential revenue losses for counties, municipalities, and school districts due to the elimination of the business inventory tax, the Legislature is required to establish alternative funding mechanisms or adjust state aid allocations. Additionally, local governments will have the flexibility to modify their tax policies within the framework of state law to maintain fiscal stability. The overall purpose of the amendment is to relieve businesses from the burden of inventory taxation, thereby promoting economic growth in West Virginia.