This bill proposes amendments to the personal income tax laws in West Virginia, specifically modifying the effective date for future personal income tax reductions and establishing new graduated income tax rates. The bill introduces a new section, 11-21-4j, which outlines the tax rates for individuals, married couples filing jointly, heads of households, and estates and trusts starting from January 1, 2026. The new tax structure includes a tiered rate system, with rates ranging from 2.00% for incomes not exceeding $10,000 to 4.34% for incomes over $60,000. Additionally, the bill specifies that for married individuals filing separately, the tax rates will be adjusted accordingly, with the highest rate being 4.34% for incomes over $30,000.

Furthermore, the bill modifies the existing provisions regarding personal income tax reductions by changing the effective date from August 15, 2025, to August 15, 2026, and establishes criteria for future reductions based on general revenue fund collections. It also reduces the withholding tax rates on nonresident income, the sale of real estate, and lottery winnings, effective from January 1, 2026. The Secretary of Revenue is tasked with determining the need for tax rate reductions annually, and the Tax Commissioner is required to prepare an annual report detailing any modifications to the personal income tax. Overall, the bill aims to create a more favorable tax environment for individuals and families in West Virginia.

Statutes affected:
Introduced Version: 11-21-4hof, 11-21-4j