The West Virginia Senate today announced its plan to reduce the tax burden of West Virginians by approximately $600 million through a combination of tax reductions that will benefit nearly all West Virginians.
The bill, which will be taken up on the Senate floor Wednesday evening, will include the following components:
- A sustainable personal income tax reduction, starting with a 15 percent decrease in personal income tax
- Elimination of the “marriage penalty” when filing taxes in West Virginia
- A rebate for the payment of taxes on vehicles
- A homestead real property tax rebate for 90- to 100-percent service-disabled military veterans
- A 50 percent rebate for the payment of equipment and inventory taxes paid by West Virginia small businesses
Senate President Craig Blair, R-Berkeley, said the Senate’s comprehensive plan is a result of several months of careful analysis of the state’s accurate financial picture, and responsibly returns money to citizens to provide necessary tax relief without jeopardizing West Virginia’s financial future.
The Senate’s plan also does not interfere in any way with the revenues collected by the levying bodies, counties, municipalities, and boards of education.
“We studied the numbers, and at the end of the day, we knew the State had only about $600 million to give back to the citizens in the form of tax relief,” Senate President Blair said. “Our plan provides relief for low-income families, senior citizens, disabled veterans, and small business owners, and it eliminates the penalty married couples incur when they file their tax returns jointly in West Virginia. Our plan provides relief for virtually everybody.”
The Senate’s plan is the result of weeks of ongoing conversations with policymakers on how to ensure the most West Virginians benefit from the $600 million available for tax relief. It also includes relief to small businesses, many of which are still in recovery mode following the pandemic.
“About 98 percent of businesses in West Virginia are small, family-owned businesses, and this 50 percent rebate will directly benefit those families,” Senate Majority Leader Tom Takubo, R-Kanawha, said. “The Governor has been a strong proponent of giving people and small business owners their hard-earned money back, and we applaud him for giving us the opportunity to put every idea on the table and come up with a path forward that benefits the most West Virginians.”
By combining an income tax reduction with a rebate for the tax paid on vehicles, the Senate’s comprehensive plan helps to ensure even more West Virginians will see money back into their pockets.
“Lower-income families and retirees are often left behind with personal income tax cuts, so it was important for us to include the Governor’s bill to rebate the tax on vehicles as a way for them to benefit from this plan, too,” Senate President Blair said. “I believe we’ve put together a bill that pulls together the ideas of the Governor, House of Delegates, and the Senate, and we are looking forward to getting it across the finish line.”
