This bill proposes an amendment to the West Virginia Code, specifically section 11-21-12, to exclude any net capital gains derived from the exchange or sale of precious metal bullion from the calculation of gross income for state tax purposes. Precious metal bullion is defined in the bill as coins, bars, or rounds primarily made of refined gold, silver, platinum, or palladium, valued mainly by their weight, purity, and content. The bill also includes a provision that any changes made to this section will apply retroactively to taxable years beginning after December 31, 2025.

In addition to the new exclusion for precious metal bullion, the bill maintains existing provisions regarding various modifications to federal adjusted gross income, including those related to retirement benefits and social security income. The intent of the bill is to provide tax relief for individuals who engage in transactions involving precious metals, thereby encouraging investment in this asset class while aligning state tax law with federal regulations that prohibit taxation of certain income types.

Statutes affected:
Introduced Version: 11-21-12