This bill proposes to amend the Code of West Virginia by abolishing the personal income tax for tax years beginning after December 31, 2025. Specifically, it inserts new language stating that "the tax imposed by this section is abolished" for those tax years. Additionally, it clarifies that for tax years starting on or after January 1, 2024, the income of non-grantor trusts administered by licensed private trust companies will not be subject to this tax.

The bill also maintains existing provisions regarding the imposition of tax on individuals, estates, electing pass-through entities, and trusts, while specifying that partnerships and other pass-through entities are only liable for tax in their individual capacities unless they elect to be taxed as a pass-through entity. Furthermore, it outlines exemptions for certain trusts and organizations that are not subject to federal income tax. Overall, the primary aim of the bill is to eliminate the personal income tax in West Virginia, significantly altering the state's tax structure.

Statutes affected:
Introduced Version: 11-21-3