Budget & Taxes (Sales Tax)

This bill exempts certain non-grantor trusts from West Virginia's personal income tax if they are administered within the state. Specifically, it removes income tax liability for non-grantor trusts (trusts not treated as grantor trusts under federal law) that are created under West Virginia law or have their legal situs in the state, and are managed by a West Virginia resident trustee or a licensed private trust company with a physical presence in the state. The exemption applies to taxable years beginning January 1, 2027, and affects trust administrators and beneficiaries of qualifying trusts. This is a direct tax policy change that alters which entities owe state income tax, without altering tax rates for individuals or other entities.

HB 4927 would abolish West Virginia's personal income tax for all individuals, estates, trusts, and pass-through entities, effective for tax years beginning after December 31, 2026. The bill amends §11-21-3 of the West Virginia Code to eliminate the tax imposition described in the section, removing the requirement for taxpayers to pay income tax under current law. This change directly affects all West Virginia residents and nonresidents with taxable income subject to the state's personal income tax. The policy change is a complete repeal of the tax, not a reduction or modification of rates.

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.