CHARLESTON, W.Va. (WBOY/WOWK) — Gov. Jim Justice Wednesday proposed a 10% personal income tax reduction that he said will put $254 million “back into the hands of the people of West Virginia” as the state sees a record budget surplus of $1.308 billion.
That’s the maximum amount that can be cut while remaining in compliance with funding stipulations in the American Rescue Plan Act (ARPA), according to the governor.
Justice announced this during a press conference on the fiscal year 2022 general revenue collections.
He said this will be a permanent tax cut, “not a temporary stimulus.”
The governor said he will be calling a special session to coincide with the interim meetings on July 24, 25 and 26 and ask to pass the bill he is proposing.
If passed, the cut will be retroactive to the beginning of the 2022 calendar year, and the reduction will be automatic on October payroll withholding and apply to Sept. 15 estimated tax payments. The retroactive amount will come as a refund when West Virginians file their 2022 taxes.
Justice said he will announce later if the special session will also discuss West Virginia’s abortion law.
“It puts us on a glide path to someday, someday be a state as Florida, Tennessee and Texas are today,” Justice said.
Last year, Gov. Justice proposed eliminating West Virginia’s income tax altogether, but the West Virginia House of Delegates struck his bill down with a unanimous 0-100 vote.