Budget & Taxes (Income Tax)

in committee · West Virginia · Senate Jan 15, 2026

SB 405: Relating to nonresident income tax for natural resources royalty payments received from lessees

This bill requires companies (lessees) that pay mineral royalty payments (e.g., for coal, oil, or gas) to nonresident owners (lessors) to withhold West Virginia income tax from those payments. Lessees must withhold tax on annual payments exceeding $1,000, remit the withheld amount to the state, and provide annual statements to the nonresident lessors. Nonresident owners will be credited for the withheld tax against their state tax liability and can receive refunds for overpayments. The law aims to ensure nonresident mineral rights owners pay taxes on income earned from West Virginia resources, closing a revenue gap identified by the legislature.

Topics ✓ Budget & TaxesSupports Budget & TaxesRequires withholding income tax on mineral royalty payments, increasing state tax revenue collection from nonresident owners.95% confidence

Sub-Topics Income Tax

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in committee · West Virginia · House of Delegates Jan 28, 2026

HB 4883: Abolish the tax on overtime pay

HB 4883 would exempt overtime pay from West Virginia's personal income tax. Currently, workers pay state income tax on overtime earnings, but this bill would remove that tax obligation. The provision applies directly to all West Virginia employees who earn overtime pay under state labor laws. This change would increase take-home pay for affected workers by eliminating the tax on overtime hours.

Topics ✓ Budget & TaxesSupports Budget & TaxesExempts overtime from state income tax, providing direct tax relief to workers and aligning with 'provides tax relief' indicator.90% confidence ✓ Labor & EmploymentSupports Labor & EmploymentExempts overtime pay from state income tax, directly increasing take-home pay for workers and strengthening wage benefits under Labor & Employment policies.95% confidence

Sub-Topics Business Taxes Income Tax Labor Standards

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in committee · West Virginia · House of Delegates Jan 19, 2026

HB 4507: Relating to allowing a personal income tax exemption for First Responders

HB 4507 would exempt the salaries of certain first responders from West Virginia's state personal income tax. It directly affects law enforcement officers, paid firefighters, correctional officers, and emergency medical services (EMS) personnel as defined in existing state law. The bill adds a new provision to the tax code stating these workers' salaries are not subject to state income tax. This change applies only to their earned income from these specific roles, not other income they may receive.

Topics ✓ Budget & TaxesSupports Budget & TaxesExempts first responders' salaries from state income tax, providing direct tax relief for middle-income public safety workers.95% confidence ✓ Criminal JusticeSupports Criminal JusticeProvides tax exemption for law enforcement and correctional officers, directly funding their salaries to support workforce retention in criminal justice system.80% confidence

Sub-Topics Income Tax Tax Incentives Law Enforcement Tags Public Safety

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signed · West Virginia · Senate Jun 25, 2026

SB 392: Relating to personal income tax reduction

SB 392 reduces West Virginia's personal income tax rates for taxpayers starting January 1, 2026, with automatic future reductions tied to state revenue growth. The bill requires the Secretary of Revenue to calculate annual tax rate cuts when state revenue exceeds inflation-adjusted 2019 levels (base year: $4.29 billion), applying the reduction equally across all tax brackets. These reductions cannot exceed a 10% cut in existing rates and will be certified annually after August 15 each year. The bill also lowers withholding rates on nonresident real estate sales, lottery winnings, and certain composite returns. This legislation directly affects all West Virginia income tax filers and nonresidents earning income within the state.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill reduces personal income tax rates across all brackets with revenue-linked automatic cuts, providing tax relief and promoting fiscal responsibility through structured tax reduction.95% confidence

Sub-Topics Business Taxes Income Tax Revenue

in committee · West Virginia · Senate Jan 19, 2026

SB 492: Establishing additional modification reducing federal adjusted gross income relating to taxes on tips and overtime

SB 492 creates a new tax deduction for West Virginia residents, reducing their taxable income based on federal deductions for qualified tips and overtime pay. For tax years 2026-2028, it allows a deduction equal to federal tip and overtime deductions claimed on federal returns. Starting in 2029, it limits the deduction to $25,000 annually for tips and $12,500 for overtime, phasing out for taxpayers with modified adjusted gross income over $150,000. Nonresidents can only claim deductions for work performed in West Virginia. The bill directly affects service industry workers and overtime earners who itemize federal deductions.

Topics ✓ Budget & TaxesSupports Budget & TaxesCreates tax deduction for tips/overtime, reducing taxable income for middle-income earners with phase-outs above $150k, providing targeted tax relief.95% confidence

Sub-Topics Income Tax

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in committee · West Virginia · Senate Jan 14, 2026

SB 120: Eliminating income tax on qualified tipped wages

SB 120 would allow West Virginia residents who receive tips in their job (such as servers or bartenders) to deduct those tips from their state income tax. The bill defines "qualified tips" as cash, credit card, or check tips reported to an employer, and creates a state tax deduction for these amounts. This deduction would lower taxable income for state tax purposes but only applies to tips not already deductible under federal tax rules. The change would take effect for tax years beginning January 1, 2027.

Topics ✓ Budget & TaxesSupports Budget & TaxesProvides tax deduction for tipped workers, reducing state tax burden for lower/middle-income earners95% confidence ✓ Labor & EmploymentSupports Labor & EmploymentDeducting tips from taxable income increases take-home pay for tipped workers, directly supporting their financial well-being within Labor & Employment policies.92% confidence

Sub-Topics Income Tax Minimum Wage

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in committee · West Virginia · House of Delegates Jan 29, 2026

HB 4968: To exempt the first $20,000 of earnings from the state income tax for West Virginia residents

HB 4968 would exempt the first $20,000 of annual income from West Virginia state income tax for resident individuals and married couples filing jointly. Effective for tax years beginning January 1, 2026, the bill modifies the tax calculation by reducing taxable income by $20,000 before applying the state tax rate. This directly benefits low-to-moderate income West Virginia residents who earn under $20,000 annually. The change applies to both single filers and couples filing jointly, reducing their state tax liability without altering federal tax treatment.

Topics ✓ Budget & TaxesSupports Budget & TaxesExempts first $20k income from tax, providing direct relief to low-to-moderate earners, aligning with tax relief indicators for Budget & Taxes.95% confidence

Sub-Topics Income Tax Sales Tax

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failed · West Virginia · Senate Mar 14, 2026

SB 389: Historic Rehab Building Credit Act

SB 389 creates a 25% state income tax credit for property owners who rehabilitate certified historic buildings in West Virginia. The credit applies to both residential and non-residential buildings listed on the National Register of Historic Places or located in designated historic districts, as certified by the West Virginia Department of Tourism and the National Park Service. To qualify, rehabilitation work must meet "Secretary of the Interior's Standards" and cost at least 20% of the property's assessed value. Property owners can claim this credit against income taxes imposed under specific sections of the state tax code.

Topics ✓ Budget & TaxesSupports Budget & TaxesProvides 25% state income tax credit for historic building rehab, reducing tax burden for property owners. Direct tax relief aligns with fiscal responsibility indicators.95% confidence ✓ HousingSupports HousingProvides 25% tax credit for rehabilitating historic residential buildings, incentivizing preservation and development of housing stock under economic development framework.95% confidence

Sub-Topics Income Tax Tax Credits Tax Incentives Historic Preservation Housing Finance Property Taxes

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in committee · West Virginia · House of Delegates Jan 16, 2026

HB 4479: Timber Innovation and Manufacturing Boost for Economic Revitalization Act

HB 4479 provides tax credits to West Virginia manufacturers that transform locally harvested wood into value-added products like veneer, engineered lumber, or wood pellets. The credits - ranging from $1.25 to $6 per ton of processed wood - apply to corporate or personal income tax based on volume tiers, with annual caps of $1.25 million for existing facilities and $2.5 million for new operations or expansions. To qualify, manufacturers must meet a "minimum transformation standard" (e.g., altering wood structure) using West Virginia-sourced feedstock, excluding basic handling like cutting or sorting. Credits are prorated based on the percentage of West Virginia wood used in production.

Topics ✓ Budget & TaxesSupports Budget & TaxesProvides tax credits to manufacturers, reducing tax liability for wood processing businesses, directly impacting state tax policy and fiscal management.95% confidence

Sub-Topics Business Taxes Income Tax Tax Incentives

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in committee · West Virginia · House of Delegates Jan 19, 2026

HB 4513: Authorizing adjustment from federal adjusted gross income for certain law enforcement pension benefit payments

HB 4513 would expand a state tax exemption for pension benefits by extending the existing $2,000 annual exclusion from West Virginia income tax to include Division of Natural Resources police, deputy sheriffs, full-time firefighters, and municipal police officers. Currently, this exemption applies to some retirement benefits but excludes these specific public safety roles. The bill modifies tax code sections to explicitly add these officers to the list of law enforcement personnel whose pension payments qualify for the exemption. This change directly affects eligible officers in these roles by reducing their taxable income for state tax purposes. The bill is in early stages, having been introduced on January 19, 2026, and referred to the House Finance Committee.

Topics ✓ Budget & TaxesSupports Budget & TaxesExpands tax exemption for public safety pensioners, providing tax relief by modifying tax code to include specific officers in existing $2,000 annual exclusion.95% confidence ✓ Labor & EmploymentSupports Labor & EmploymentExpands tax exemption for public safety pension benefits, enhancing retirement compensation for covered workers per bill's explicit modification of tax code.85% confidence

Sub-Topics Income Tax Pensions Tax Incentives Retirement Benefits Tags Public Safety

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