Relating to Personal income Tax Reduction

HB 4019 would reduce West Virginia's personal income tax rates for residents and certain income types (including composite returns), effective January 1, 2026, and lower withholding tax rates on nonresident income, real estate sales, and lottery winnings. It establishes an automatic annual tax reduction mechanism: if state general revenue collections exceed inflation-adjusted base-year levels, tax rates would decrease by a percentage calculated from excess revenue (capped at 10% of current rates). The reduction is triggered by a determination made after August 15 each year by the Secretary of Revenue, based on the previous fiscal year's revenue data. These changes would apply to all West Virginia taxpayers subject to personal income tax, including residents and nonresidents with taxable income in the state.