CHARLESTON, WV — Gov. Jim Justice today announced that an additional 4% reduction in personal income tax rates will take effect on January 1, 2025.
The reduction was triggered after the state's revenue collections surpassed the rate of inflation, as stipulated in House Bill 2526, which the Governor signed in 2023.
This trigger puts the state on a path to eliminating its personal income tax.
"This is another huge achievement for West Virginia," Gov. Justice said. "We've worked hard to make sure our state's economic growth translates to real benefits for our citizens. Nothing will drive population, opportunity, and economic growth in West Virginia like eliminating our personal income tax. Today's announcement should absolutely be celebrated, but I know that we can achieve even more by continuing to reduce income taxes. We need to continue marching towards zero income taxes in West Virginia. I'll only be your governor for a few more months, but I'll always continue to do everything in my power to help this state and our people. At the end of the day, the amazing surpluses we've seen are great, but that money belongs to the people. They deserve to see it in their pockets, and the best way to maximize these surpluses is reducing the personal income tax."
With Fiscal Year 2024 revenue collections, excluding severance tax collections, reaching $5.34 billion and an inflation-adjusted target of $5.24 billion, the excess amount has triggered this latest rate reduction.
"As the state succeeds, the people deserve to keep more of their money,” Revenue Secretary Larry Pack said. “This personal income tax trigger was put into place so as West Virginia does well economically, the people receive their share of that success. We're creating a better environment for economic growth and opportunities across the state. The hardworking people of West Virginia truly deserve it. It is certainly a proud moment for our state, and we're really excited about the bright future ahead."
Earlier this month, Gov. Justice requested the West Virginia Legislature consider an additional 5% personal income tax cut in an upcoming special session. The Legislature will also consider a childcare tax credit, which Gov. Justice proposed during his 2024 State of the State Address, among other funding matters.
To date, Gov. Justice and the West Virginia Legislature have delivered over $1 billion in tax cuts to the people of West Virginia. More information is available on the West Virginia State Tax Department's website.
|
|