SouthernWorldwide.com – A fierce economic competition, dubbed a “backyard brawl,” has erupted between West Virginia and Virginia as West Virginia Governor Patrick Morrisey actively seeks to attract businesses and workers from its neighbor.
This interstate rivalry is fueled by Virginia’s recent legislative proposals leaning towards higher taxes and increased regulations. While Virginia Governor Abigail Spanberger has championed an “affordability agenda,” the political climate has created an opening for West Virginia to present itself as a more business-friendly alternative.
Even though some of the proposed tax increases and regulatory changes in Virginia did not ultimately pass or receive the governor’s signature, the overall political environment has prompted West Virginia officials to proactively target Virginia’s workforce and businesses. They are highlighting lower taxes and fewer regulations as a compelling reason to relocate.
“The backyard brawl for our state’s future is being won both at the kitchen table and in the marketplace,” Governor Morrisey stated. He emphasized that the Tabler Station project, which he recently unveiled, is just one example of numerous similar initiatives underway across West Virginia.
The region around Tabler Station is historically significant for West Virginia’s apple industry, so much so that the local high school sports team is known as the “Musselman Applemen.” The area also hosts major industrial facilities, including a large Clorox plant that is actively advertising job openings to passing motorists on Interstate 81.
“While Virginia chooses to burden its citizens and job creators with higher taxes, West Virginia is choosing freedom, fiscal responsibility, and a tax climate that makes our state more competitive for business than our neighbor,” Morrisey asserted.
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Governor Morrisey expressed his confidence, stating that he and his Republican allies in Charleston are committed to making all of West Virginia “open for business.”
He further suggested that Berkeley and the adjacent Jefferson County, which share borders with Loudoun County in Virginia and Washington County in Maryland, could serve as a model for regional business and tourism development.
The governor also pointed to a growing trend of workers from the Washington, D.C. metropolitan area relocating to West Virginia’s Eastern Panhandle. This migration is occurring despite the longer commutes and limited rail service available in the region.
“The difference between Virginia and West Virginia couldn’t be more clear,” he remarked. “West Virginia is coming for a lot of those businesses that would ordinarily locate in Virginia.”
Governor Spanberger, on her part, has noted that she did not sign several proposed tax measures that did not reach her desk. However, she did approve an increase in the minimum wage and higher payroll contributions for family leave initiatives.
State Senator Jason Barrett, R-Martinsburg, who was instrumental in developing the economic development plans that received Governor Morrisey’s approval, observed that an increasing number of people are already visiting his area along the Virginia border. These visitors are “spending money, supporting local businesses, and really helping economic development,” he noted.
Barrett’s new legislation provides a framework for the state to establish special tax districts. In these districts, a portion of state revenues can be redirected to the counties, as only the legislature possesses the authority to implement tax structures. The law also creates additional economic districts in Harpers Ferry, Henderson, Bridgeport, Princeton, Beckley, and Wheeling.
The law specifies that any redirected taxes must not “adversely affect” the state budget. Barrett’s legislation aims to leverage the influx of new residents and a broader tax base to enhance the visibility of areas like Berkeley and Jefferson as “travel destinations.” It also targets youth sporting events, with revenue from the Tabler Station district earmarked for their development, thereby generating further financial benefits for West Virginians.
While Virginia was considering tax increases, Governor Morrisey signed a 5% income tax cut across the board in April. He also aligned West Virginia’s tax code with the federal tax-cut provisions enacted under President Donald Trump.
Meanwhile, Governor Spanberger announced that she would be embarking on her own “economic development” tour of Virginia. In a statement, she emphasized that “from day one, my focus has been building an economy that works for every Virginian and delivers real results for families, businesses, and communities.”
Governor Spanberger mentioned that her administration has already made stops in Harrisonburg and Fairfax to promote her initiative of “bringing people together to shape a clear, forward-looking plan.”
Although certain parts of West Virginia, particularly in the southern regions, continue to face challenges related to long-term shifts in the energy industry, population growth and rising state revenues have enabled significant tax reductions. This stands in stark contrast to Virginia’s recent push towards new taxes and regulations.
