Budget & Taxes

SB 871 allocates $12.66 million from West Virginia's Excess Lottery Fund to the Hope Scholarship Program for fiscal year 2026. This supplemental appropriation adds a new funding line (Fund 3517) to the State Board of Education's budget, directing unappropriated lottery surplus funds toward scholarship payments. The bill does not change program eligibility, rules, or structure - it only provides additional funding for existing scholarship disbursements. It is a procedural budget adjustment, not a new policy.

This bill reduces the severance tax rate on metallurgical coal produced in West Virginia, affecting coal mining companies that extract this type of coal. The new rates will take effect in stages starting July 1, 2026, lowering the tax from 5% to 4.5% for the first year, then to 4% the following year, and finally to 3.5% beginning July 1, 2028. Metallurgical coal is defined as coal used for making steel and other metals, distinct from thermal coal used for electricity generation. The tax reduction applies to the gross value of coal produced and includes additional local taxes that are normally part of the total severance tax.

HB 5652 would amend West Virginia's hotel occupancy tax law to expand the definition of "hotel" to include campground sites. This change would allow county commissions to designate specific campgrounds as "hotels" for tax collection, requiring that any tax collected from these sites be specifically earmarked for public safety services within the county. The bill also clarifies key terms like "hotel operator" and "hotel room" to define the tax's scope more precisely. This amendment would directly affect campground operators (who might become liable for the tax if designated) and county governments (which would collect and allocate the funds). The proposal aims to extend the tax base to cover campgrounds while ensuring revenue supports public safety.

HB 4500 authorizes Berkeley County Commission to levy a special excise tax on sales of tangible personal property and services within the Berkeley County Economic Opportunity Development District. This tax would fund economic development initiatives in the designated district, directly affecting businesses operating within its boundaries and residents who purchase taxable goods or services there. The bill specifies that the district will remain active until 2054, unless terminated earlier under existing law, and aligns with similar provisions for other counties’ economic districts. The tax is limited to sales within the district’s defined boundaries and must be approved through required legislative processes.