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Tax Hike Endorsed for West Virginia VFD Pensions
By LAWRENCE MESSINA
Associated Press Writer
CHARLESTON, W.Va. (AP) -- West Virginians could see an ever-so-small increase to the taxes they pay on insurance policies, as lawmakers try to find ways to help the state's volunteer fire department recruit and keep members.
A legislative interim committee endorsed a proposal Sunday to hike premium surcharges, to help fund a pension-type benefit for volunteer firefighters.
The bill drafted for the upcoming 60-day session would increase the surcharge two-tenths of one percent, from 0.55 percent to 0.75 percent. That slight uptick would bring in an estimated $5 million a year for length of service awards.
Each department would receive up to $12,000 annually for their share of the costs of these monthly benefits. The state fire marshal must first certify that the department has enrolled in an approved length of service program, from a list of providers screened by the state insurance commissioner.
Under the proposed bill, any balance from the $5 million not drawn down by the end of the year would end up in a separate fund, which helps the volunteer departments pay operating costs.
Senate Government Organization Chairman Ed Bowman was the sole committee member to vote against endorsing the bill Sunday. The Hancock County Democrat cited the deepening national recession, and its growing impact on the Mountain State.
"We have legislation before us that is increasing taxes upon West Virginians," Bowman said. "I don't care how small it is. We have picked absolutely the worst time to do this."
Senate Majority Leader Truman Chafin, a co-chair of the committee, cited the panel's findings that volunteer departments are struggling to maintain their ranks.
"It's going to be very, very important to take this back home," said Chafin, D-Mingo. "This is one decision that we can be proud of."
All but 18 of the state's 400-plus fire departments are volunteer, and six of the paid units are part-time, according to the fire marshal's office. West Virginia has been part of a trend seen nationwide, where the number of volunteers fell by 8 percent, or nearly 74,000, between 1984 and 2006, according to figures from the National Fire Protection Association.
Across the U.S., volunteer fire and rescue personnel account for 72 percent of its 1.1 million firefighters.
The Legislature's regular session begins Wednesday.
Copyright 2009 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.
Associated Press Writer
CHARLESTON, W.Va. (AP) -- West Virginians could see an ever-so-small increase to the taxes they pay on insurance policies, as lawmakers try to find ways to help the state's volunteer fire department recruit and keep members.
A legislative interim committee endorsed a proposal Sunday to hike premium surcharges, to help fund a pension-type benefit for volunteer firefighters.
The bill drafted for the upcoming 60-day session would increase the surcharge two-tenths of one percent, from 0.55 percent to 0.75 percent. That slight uptick would bring in an estimated $5 million a year for length of service awards.
Each department would receive up to $12,000 annually for their share of the costs of these monthly benefits. The state fire marshal must first certify that the department has enrolled in an approved length of service program, from a list of providers screened by the state insurance commissioner.
Under the proposed bill, any balance from the $5 million not drawn down by the end of the year would end up in a separate fund, which helps the volunteer departments pay operating costs.
Senate Government Organization Chairman Ed Bowman was the sole committee member to vote against endorsing the bill Sunday. The Hancock County Democrat cited the deepening national recession, and its growing impact on the Mountain State.
"We have legislation before us that is increasing taxes upon West Virginians," Bowman said. "I don't care how small it is. We have picked absolutely the worst time to do this."
Senate Majority Leader Truman Chafin, a co-chair of the committee, cited the panel's findings that volunteer departments are struggling to maintain their ranks.
"It's going to be very, very important to take this back home," said Chafin, D-Mingo. "This is one decision that we can be proud of."
All but 18 of the state's 400-plus fire departments are volunteer, and six of the paid units are part-time, according to the fire marshal's office. West Virginia has been part of a trend seen nationwide, where the number of volunteers fell by 8 percent, or nearly 74,000, between 1984 and 2006, according to figures from the National Fire Protection Association.
Across the U.S., volunteer fire and rescue personnel account for 72 percent of its 1.1 million firefighters.
The Legislature's regular session begins Wednesday.
Copyright 2009 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.
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