This bill proposes to amend the Code of West Virginia by abolishing the personal income tax for tax years beginning after December 31, 2026. Specifically, it inserts a provision stating that the tax imposed on the West Virginia taxable income of individuals, estates, electing pass-through entities, and trusts will no longer apply starting in 2027. Additionally, it clarifies that for tax years beginning on or after January 1, 2024, income from non-grantor trusts administered by licensed private trust companies will not be subject to this tax.

The bill also includes provisions regarding partnerships and pass-through entities, indicating that they will not be subject to the personal income tax unless they elect to be taxed under specific conditions. Furthermore, it maintains exemptions for certain trusts and organizations that are already exempt from 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