UPDATE (4:56 p.m. on Wednesday, Feb. 8): The tax cut bill proposed in the West Virginia State Senate has passed the chamber.
The bill will now head to the House of Delegates.
CHARLESTON, WV (WOWK)—West Virginia leaders have released a plan to cut taxes in the Mountain State.
On Wednesday, West Virginia Senate Republicans held a press conference to announce a new bill, which will be taken up on the Senate floor.
Contained in the bill are the following proposals:
- A personal income tax reduction starting with a 15% decrease
- 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% for service-disabled military veterans
- A 50% rebate for the payment of equipment and inventory paid by West Virginia small businesses
“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.”
In all, Republican leaders said that the bill will reduce taxes by approximately $600 million.
“About 98% of businesses in West Virginia are small, family-owned businesses and this 50% 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.”
West Virginia Senate Democrats said they also agree with this tax plan, especially when it’s compared to the plan proposed by the House of Delegates.
“The House of Delegates’ version of the tax plan relies on unfounded financial assumptions. Russian invasion of Ukraine has triggered a skyrocketing of coal and natural gas severance tax revenues. There is no rational basis to predict this level of revenue will be sustained,” said Senate Minority Leader Mike Woelfel (D-Cabell). “West Virginia has been showered with one-time federal CARES Act Money and ARPA money. The influx of these millions provides the mere illusion of prosperity in our future. I fully support the Senate legislation.”