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 state and local government spending based on population growth, inflation, and personal income growth.

Additionally, the bill creates provisions for an emergency reserve fund and a budget stabilization fund, which will be funded by excess revenues beyond established limits. These funds can only be used for declared emergencies and require a two-thirds legislative vote for appropriations. The legislation also stipulates that the state cannot impose new costs on local governments without sufficient appropriations and ensures that the proportion of state revenue allocated to local governments remains consistent. Overall, the bill seeks to enhance fiscal responsibility and accountability in government spending and taxation.

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