West Virginia Legislature to Discuss Additional 5% Income Tax Cut in Special Session

West Virginia officials are evaluating if the state can afford an extra 5% income tax cut, following an automatic 4% cut triggered by economic factors.

Over the next few weeks, state revenue officials will present data to legislative leaders, potentially leading to a special legislative session in late August.

Governor Jim Justice announced the 4% personal income tax reduction, effective January 1, confirming earlier predictions. This reduction was triggered after state revenue collections surpassed the inflation rate, as outlined in 2023 legislation signed by the governor.

Justice is advocating for lawmakers to pass an additional 5% income tax cut during a special session in August. This follows a 21.25% personal income tax cut earlier this year. Justice aims to eventually eliminate the income tax.

“I’m calling everybody back in to achieve another 5%. This brings us to over 30%, moving us closer to eliminating the income tax,” Justice said.

Acting revenue secretary Larry Pack indicated that the automatic tax cut reflects a healthy state economy. “It shows how hard our residents are working,” Pack said on MetroNews’ “Talkline.”

Pack stated that the governor has requested information to ensure the additional 5% cut is feasible. “We are being prudent and reviewing numbers and projections for the next fiscal year,” Pack said.

Over the next week or 10 days, detailed discussions will occur with legislative leadership. “We need time to review and present the numbers and address any concerns,” Pack explained.

Senate President Craig Blair expressed doubt about the feasibility of the additional 5% cut but is open to discussions. Senate Finance Chairman Eric Tarr questioned if the state could balance the budget without making difficult cuts or raising another tax.

House Majority Leader Eric Householder mentioned that the state ended the fiscal year $826 million above estimate, with $600 million remaining after allocating $230 million during a May special session. This surplus is why the governor is considering a special session in August to decide on the additional 5% tax cut proposal. “I support the governor’s plan,” Householder said.

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