WEST VIRGINIA LEGISLATURE
2024 SECOND EXTRAORDINARY SESSION
Introduced Senate Bill 2025
By Senators Blair (Mr. President) and Woelfel
(By Request of the Executive)
[Introduced September 30, 2024]
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1 A BILL to amend the Code of West Virginia, 1931, as amended, by adding thereto a new section,
2 designated §11-21-4i, relating to personal income tax; providing for reduced graduated
3 income tax rates; reducing the rate of tax on certain composite returns; reducing the rate of
4 withholding tax on nonresident income; reducing the rate of withholding tax on the
5 nonresident sale of real estate; reducing the rate of withholding on lottery winnings;
6 applying reduced rates beginning January 1, 2025; providing for contingent additional
7 future reductions in the personal income tax rates when certain criteria have been met; and
8 providing effective dates.
Be it enacted by the Legislature of West Virginia:
ARTICLE 21. PERSONAL INCOME TAX.
§11-21-4i. Rate of tax — Beginning January 1, 2025.
1 (a) Rate of tax on individuals (except married individuals filing separate returns),
2 individuals filing joint returns, heads of households, and estates and trusts. — Beginning January
3 1, 2025, the tax imposed by W. Va. Code §11-21-3 on the West Virginia taxable income of every
4 individual (except married individuals filing separate returns); every individual who is a head of a
5 household in the determination of his or her federal income tax for the taxable year; every husband
6 and wife who file a joint return under this article; every individual who is entitled to file his or her
7 federal income tax return for the taxable year as a surviving spouse; and every estate and trust
8 (except non-grantor trusts administered by licensed private trust companies created pursuant to
9 the provisions of W. Va. Code §31I-1-1 et seq. shall be determined in accordance with the
10 following table:
11 If the West Virginia taxable
12 income is: The tax is:
13 Not over $10,000 2.16% of the taxable income
14 Over $10,000 but not over $25,000 $216 plus 2.87% of excess over $10,000
15 Over $25,000 but not over $40,000 $646.50 plus 3.23% of excess over $25,000
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16 Over $40,000 but not over $60,000 $1,131 plus 4.3% of excess over $40,000
17 Over $60,000 $1,991 plus 4.67% of excess over $60,000
18 (b) Rate of tax on married individuals filing separate returns. — In the case of husband and
19 wife filing separate returns under this article for the taxable year, the tax imposed by W. Va. Code
20 §11-21-3 on the West Virginia taxable income of each spouse shall be determined in accordance
21 with the following table:
22 If the West Virginia taxable
23 income is: The tax is:
24 Not over $5,000 2.16% of the taxable income
25 Over $5,000 but not over $12,500 $108 plus 2.87% of excess over $5,000
26 Over $12,500 but not over $20,000 $323.25 plus 3.23% of excess over $12,500
27 Over $20,000 but not over $30,000 $565.50 plus 4.3% of excess over $20,000
28 Over $30,000 $995.50 plus 4.67% of excess over $30,000
29 (c) Effect of rates on Nonresident Composite and Withholding Obligations —
30 Notwithstanding any provision of this article to the contrary, for taxable years beginning on and
31 after the retroactive date specific in W. Va. Code §11-21-4g(d), whenever the words "six and one-
32 half percent" appear in W. Va. Code §11-21-51a, §11-21-71a, §11-21-71b, or §11-21-77, with
33 relation to a tax return of, or the tax rate imposed on income of individuals, individuals filing joint
34 returns, heads of households, and estates and trusts (except non-grantor trusts administered by
35 licensed private trust companies created pursuant to the provisions of W. Va. Code §31I-1-1 et
36 seq., the stated percentage shall be changed to 4.67%.
37 (d) Applicability of this section. — Beginning January 1 2025, the reduction of tax, and the
38 corresponding rates of tax issued by the Tax Commissioner pursuant to the provisions of W. Va.
39 Code §11-21-4h are further reduced by five percent. The provisions of this section shall be
40 applicable in determining the rates of tax imposed by this article beginning January 1, 2025:
41 Provided, That the tax rates specified in this section shall continue to be adjusted in accordance
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42 with W. Va. Code §11-21-4h and may be superseded by any rates determined by that section.
NOTE: The purpose of this bill is to authorize up to a 5% additional reduction of the personal income tax rate beginning January 1, 2025.
Strike-throughs indicate language that would be stricken from a heading or the present law and underscoring indicates new language that would be added.
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Statutes affected: Introduced Version: 11-21-4i