Coming off the greatest year of revenue collections in state history, Governor Jim Justice announced that he is proposing a permanent 10% cut of the personal income tax.
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Under the Governor’s proposal, the 10% tax cut will be retroactive to the beginning of the 2022 calendar year, putting $250 million back in the pockets of West Virginians.
“Cutting our personal income tax will put money in your pocket and bring prosperity to our state for generations. But we need to act now, especially when you consider the unbelievable economic growth we’ve achieved this year,” Governor Justice said during a press conference at the State Capitol on July 6
The Governor announced that he will call a Special Session of the West Virginia Legislature to coincide with this month’s interim meetings on July 24-26 to allow legislators to vote on his proposal.
The Governor’s proposal is simple enough to be contained in a two-page bill and is a true cut – reducing the Personal Income Tax without raising any other taxes in the process.
The 10% personal income tax reduction is the maximum amount that can be cut while remaining in compliance with funding stipulations in the American Rescue Plan Act (ARPA).
“We would cut even more if it weren’t for these federal regulations. Under the current guidelines, this is absolutely the most money we can put back in the pockets of hardworking West Virginians,” Governor Justice said.
“I wish we could eliminate the personal income tax altogether, but we need to get the ball rolling – now more than ever. In the past year, gas prices have gotten out of control and inflation is through the roof. West Virginians need help right now.”
If the Legislature passes his bill, the reduction will be automatic on October payroll withholding, and applies to September 15 estimated tax payments as well. The retroactive amount will come as a refund when West Virginians file their 2022 taxes. ■