West Virginia's SB 917 imposes a 15% privilege tax on the retail sale of electric vehicle charging services at public charging stations. It directly affects charging station operators, who must collect the tax from customers and remit it monthly to the state. The tax applies to gross receipts from public charging services (e.g., per session or per kWh), excluding private or free charging. Revenue generated will fund the State Road Fund, aligning with the principle that road users should contribute to infrastructure maintenance.
HB 5389 creates a 30% transferable tax credit for nonprofit organizations that convert existing hotels, motels, or commercial buildings into housing for homeless veterans. The credit covers 30% of qualified redevelopment costs (like renovation and infrastructure) but excludes land acquisition, and can be applied against corporate income, personal income, or business franchise taxes. Nonprofits can sell or transfer the unused credit to other taxpayers to generate funding, with credits carrying forward up to 10 years. This aims to incentivize supportive housing without creating new state spending or entitlements, targeting veterans facing homelessness through adaptive reuse of underutilized properties.
SJR 22 proposes a constitutional amendment to eliminate West Virginia's ad valorem tax on business and inventory tangible personal property (like equipment and stock) starting July 1, 2029. It requires the legislature to replace this lost revenue by adjusting the general sales tax rate to match the previous tax revenue, with funds distributed to counties that previously received payments from this property tax. The amendment must be approved by voters in the 2026 general election to take effect. This change directly affects businesses owning tangible inventory and counties relying on this tax revenue for funding.
HB 5617 would allow certified nonprofit retailers (called "workforce training community centers") meeting specific criteria to retain 75% of consumer sales tax revenue collected after the first $1 million in annual sales. These retailers must use the retained funds exclusively for job training and placement services targeting people with employment barriers, such as disabilities. They would continue paying local sales taxes and report retained amounts to the state Department of Revenue. The bill creates a new program to expand access to workforce development by redirecting a portion of sales tax revenue toward job training services.
SB 935 repeals a tax exemption for certain coal-fired power plants in West Virginia, directly affecting owners/operators of coal plants operational before January 1, 1995. The bill reduces the taxable generating capacity for these plants to 45% of their official capability (instead of 100%) for tax years starting July 1, 2021, but requires plants to remain operational until at least July 1, 2025, to qualify. If such plants close before July 1, 2025, owners must repay tax savings through a recapture tax, though federal mandates exempting closures avoid this requirement. The law applies specifically to "merchant power plants" (independent generators) and modifies existing tax calculation rules under West Virginia Code §11-13-2o.
SB 460 would exempt tips and overtime compensation from West Virginia's personal income tax. This means workers earning tips (such as in restaurants) or overtime pay (for hours beyond 40 in a week) would not owe state income tax on those earnings. Employers would still be required to report these payments as part of their tax filings, but the state would not tax them. The bill directly affects all West Virginia workers who receive tips or overtime compensation, including service industry employees and hourly workers.
HB 4883 would exempt overtime pay from West Virginia's personal income tax. Currently, workers pay state income tax on overtime earnings, but this bill would remove that tax obligation. The provision applies directly to all West Virginia employees who earn overtime pay under state labor laws. This change would increase take-home pay for affected workers by eliminating the tax on overtime hours.
SB 621 creates a tax credit for West Virginia corporations that operate existing employer-provided or employer-sponsored child care facilities on workplace premises. It allows corporations to claim a credit equal to 100% of their annual operational costs (excluding property costs) for these facilities, minus any amounts paid by employees. The credit is limited to the corporation’s tax liability for the year and can be carried forward up to five years if unused. This bill directly affects businesses operating qualifying on-site child care, providing a financial incentive to maintain or expand such services.
SJR 12 proposes a constitutional amendment to eliminate West Virginia's tax on business inventory, which would prohibit the state from taxing goods, materials, or products held for sale, manufacturing, or processing. If approved by voters in the 2026 election, this amendment would require the state to replace lost revenue for counties, municipalities, and school districts through alternative funding mechanisms. The amendment specifies that local governments may adjust tax policies within state law to maintain fiscal stability after the tax is removed. This is a voter-approved constitutional change, not an immediate law, and would take effect upon ratification.
SB 392 reduces West Virginia's personal income tax rates for taxpayers starting January 1, 2026, with automatic future reductions tied to state revenue growth. The bill requires the Secretary of Revenue to calculate annual tax rate cuts when state revenue exceeds inflation-adjusted 2019 levels (base year: $4.29 billion), applying the reduction equally across all tax brackets. These reductions cannot exceed a 10% cut in existing rates and will be certified annually after August 15 each year. The bill also lowers withholding rates on nonresident real estate sales, lottery winnings, and certain composite returns. This legislation directly affects all West Virginia income tax filers and nonresidents earning income within the state.
