Pub 2 2021 Issue 1

http://wvcar.com 8 WVADA in their possession. This bill also makes it illegal for individuals to post and sell catalytic converters on an internet-based platform. Also, a scrap dealer must pay for a stand-alone converter(s) via check and are not allowed to pay cash. A scrap dealer must hold the catalytic converter for 14 days after it is acquired. Provided that the 14-day retention requirement may be reduced to five days if, within the five days, the scrap dealer provides all documentation to the local detachment of the State Police and the chief of police of the municipality or the sheriff of the county in which he or she is transacting business. Also, a scrap dealer CANNOT purchase or take possession of a catalytic converter if the identifying information on it has been manually altered. A special thank you to Richard Stephens and Bill Cole for taking the time to testify before the Senate Judiciary Committee. Richard and Bill did an exceptional job and WVADA greatly appreciates their time and willingness to address this issue on behalf of all WV dealers who have been affected by this ongoing theft. H.B. 2001 – Creating the WV Jumpstart Program (completed legislative action – signed by Governor) WV is the first state in the nation to implement this innovative program that will truly help build up our blue-collar workforce. The Jumpstart Program will allow individuals who wish to pursue a vocation or trade to make up to $25,000 in annual tax-free contributions to a savings and investment account that can then be used to help cover the business startup costs, equipment, tools, certifications and licenses needed for their occupation. This is a great program for our industry, considering the shortage of auto mechanics in WV and nationwide. I believe that WVADA has a great opportunity to support this program through potential scholarships to incentivize and direct more individuals toward the automotive industry. H.B. 3175 – Relating to Removing Certain Felonies that can Prohibit Vehicle Salespersons from Receiving a License (Completed Legislative Action – pending Governor signature) The WVADA Board overwhelmingly voted to eliminate this requirement. As many of you know, vehicle salesperson continued from the previous page licensure was established in 2006. The intent of licensing individuals to sell automobiles has not been effective. Currently, if an individual has a past felony, they are automatically denied a license. However, according to the DMV, over 95% of individuals denied licensure receive a license via the appeal process. In addition, the test has become outdated and applicants must make an appointment, some of which are unable to get an appointment for several months. The DMV was supportive of eliminating this requirement and they do not believe that it is their place to regulate employees of dealerships. Reduction/Elimination of Personal Income Tax “We may never have an opportunity like this ever again,” Governor Justice said. From 1950 to 2016, the total population of the United States doubled. In that same time frame, 49 out of 50 states saw their population increase, except West Virginia. Between 2010 and 2020, WV’s population decreased by 3.8%, the steepest rate of population decline in the country. “We have all the building blocks in our state and an economy that’s truly on the launchpad. The last piece of this puzzle is the elimination of our personal income tax. That’s why I am proposing a plan to make this dream a reality starting with a 60% reduction in state income tax for year one,” said Justice. The majority of this session was dedicated to discussions revolving around the Governor’s reduction/elimination of Personal Income Tax (PIT). While the Governor, Senate and House of Delegates support the eventual elimination of PIT, they all three have very different approaches as to the appropriate avenue to backfill the $2 billion deficit this elimination would incur. As of now, there does not seem to be an agreed-to approach, and more than likely, this issue will take the form of a special session in the upcoming months. Governor’s Version S.B. 600 – Relating to Personal Income Tax Reduction This bill will reduce State income tax brackets as follows: Total Tax Reduction: $1,087,650,000 • Tax rates for all filers reduced by 60% • Will reduce PIT by 60% ($1,035,650,000) on income earned from: ◦ Wages and salaries ◦ Pensions, annuities, IRAs, Social Security and Unemployment • The reduction excludes income earned from the following: ◦ Schedule C Business Profits ◦ Schedule E Rents, Royalties, and Pass through entity profits Delegate Matt Rohrback (R-Cabell, 17) in the passenger seat and Dele- gate Erikka Storch (R-Ohio, 3) back seat, enjoy a test drive in the 2021 Ford Mustang Mach-E.