CHARLESTON, WV – Gov. Jim Justice held a ceremony today to officially sign HB 2526, the largest tax cut in West Virginia history.
“It’s not often that you have the largest tax cut in the history of West Virginia,” Gov. Justice said. “I thank Speaker Hanshaw, President Blair, our leadership teams, finance folks and all the people who pulled the rope. It’s taken two years to get here, but this is a monumental day for us all.
“The world is watching West Virginia. The world sees West Virginia in a different light today. We’re not the blunt end of a bad joke. We’re the diamond in the rough people missed. We’ve known for a long time how good we were. Today, we put our stake in the sand, inviting everyone to our state.”
The bill contains provisions for additional annual personal income tax rate cuts in future years beginning as early as 2025 to the extent that actual State revenue growth exceeds consumer inflation. These triggers put West Virginia on a pathway toward complete elimination of the personal income tax.
The bill returns over $750 million to hardworking West Virginians through income tax reductions. Income tax rates are reduced by 21.25% this year. Additional income tax cuts will occur in 2024 through refundable tax credits equal to the amount of car taxes paid to county sheriffs, and half of the amount of tangible personal property taxes paid to the county sheriff for qualified small businesses. Disabled veterans are eligible for an additional income tax credit equal to the amount of property tax paid to the county sheriff on their homestead.
The Governor was joined by members of the West Virginia Legislature, including Speaker of the House Roger Hanshaw and President Craig Blair.
The West Virginia State Tax Division will issue revised withholding tables no later than April 1, 2023. Taxpayers who pay estimated payments may reduce their payments beginning on April 15, 2023 and thereafter.