Budget & Taxes

HB 4885 would repeal West Virginia's state excise tax on gasoline, which is currently added to prices at the pump. The bill removes this tax by repealing the existing law (§11-14C-5) that imposed the motor fuel excise tax. This change would eliminate the state tax component from gasoline prices, directly affecting both consumers (who would no longer pay this tax) and retailers (who would no longer collect and remit it). The bill is pending in the House Finance Committee.

SB 5 exempts retirement income for retired West Virginia campus police officers from state personal income tax, effective July 1, 2026. This applies specifically to retirement benefits received under any qualified retirement system (including those sponsored by colleges/universities) that would otherwise be taxable under federal rules. The exemption covers all retirement income received after the effective date, including survivorship annuities. It directly affects retired campus police officers employed by West Virginia institutions of higher education. The bill amends West Virginia Code §11-21-12 to add this specific exemption to the state's tax code.

SB 387 clarifies the definition of "farm" for tax purposes in West Virginia. It specifies that a "farm" includes land used primarily for seasonal farming (like growing crops or raising livestock) but excludes commercial forestry/timber land and the one acre surrounding a principal residence (which will be valued as a regular home site). The bill requires the Commissioner of Agriculture to certify qualifying land, helping county assessors determine farm status for tax assessments. This directly affects farmers, local tax assessors, and the state's tax administration process.