Creating Tax and Expenditure Limitation Act

SB 885, the "Tax and Expenditure Limitation Act," would require voter approval for most new taxes, tax increases, or significant spending changes by West Virginia state and local governments starting in 2026. It sets annual spending limits: for the state, the maximum increase equals the lesser of population growth plus inflation, personal income growth, or gross state product growth; for local districts, it equals inflation plus local economic growth (e.g., property value changes for non-school districts or enrollment shifts for schools). The bill also mandates voter approval for creating new debt (except for refinancing or pension additions) or suspending these spending limits. This legislation directly affects all state and local government entities, including counties, cities, school districts, and special districts.