The proposed bill aims to establish the "Tax and Expenditure Limitation Act" in West Virginia, introducing a series of new articles (11-29-1 through 11-29-9) that set forth regulations regarding state and local government taxation and spending. Starting from fiscal years commencing after December 31, 2025, the bill mandates that any new tax rate increases, extensions of expiring taxes, or significant financial obligations must receive prior voter approval. It also outlines definitions for key terms such as "inflation," "population," and "emergency," and establishes limits on both state and local government spending and revenue based on various economic indicators, including population growth and inflation rates.

Additionally, the bill creates provisions for an emergency reserve fund and a budget stabilization fund, which will be funded by excess revenues and can only be used for declared emergencies. It prohibits the imposition of new costs on local governments without specific appropriations and ensures that the proportion of state revenue allocated to local units of government remains consistent. The bill also includes a severability clause, ensuring that if any part of the legislation is deemed invalid, the remaining provisions will still be enforceable.

Statutes affected:
Introduced Version: 11-29-1, 11-29-2, 11-29-3, 11-29-4, 11-29-5, 11-29-6, 11-29-7, 11-29-8, 11-29-9