The proposed bill aims to establish the "Tax and Expenditure Limitation Act" in West Virginia, introducing a series of new articles that set forth regulations regarding state and local government spending and taxation. 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 based on population growth and inflation rates. Additionally, the bill creates provisions for an emergency reserve fund and a budget stabilization fund to manage excess revenues and ensure fiscal stability.

Furthermore, the legislation 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 units of government remains consistent. It also includes a severability clause, ensuring that if any part of the act is deemed unconstitutional, the remaining provisions will still be enforceable. Overall, the bill seeks to enhance fiscal responsibility and transparency in government spending while providing mechanisms for emergency funding and revenue management.

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