Exempting non-grantor trusts administered in state from personal income taxation

West Virginia Senate Bill 518 exempts certain trusts from the state's personal income tax. Specifically, it removes income tax liability for "non-grantor trusts" (trusts where the grantor doesn't control assets) that are administered within West Virginia by licensed private trust companies or resident trustees with a physical presence in the state. This change applies to tax years beginning January 1, 2026, and directly affects these trusts and their beneficiaries by eliminating state income tax on trust earnings. The bill amends West Virginia Code §11-21-3(e) to clarify this exemption for qualifying trusts.