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.
SJR 21 proposes a constitutional amendment (designated "Amendment 1") that would require West Virginia's state government to limit annual spending increases to no more than the combined growth of the state's population plus inflation. This would directly affect state budget decisions by imposing a strict cap on how much spending can rise each year. The amendment would be submitted to voters in the 2026 general election for approval. If adopted, it would become part of the West Virginia Constitution, altering how state expenditures are managed. The resolution includes procedural steps to number and name the proposed amendment as the "Taxpayers' Bill of Rights Amendment."
SB 1058 would establish Economic Freedom Zones in West Virginia's most distressed census tracts (defined by high unemployment and poverty rates), offering a 50% reduction in corporate and pass-through business income tax rates for all businesses and individuals operating within these zones. The bill mandates regulatory simplification by requiring two existing state rules to be repealed for every new rule in a zone and setting a 30-day deadline for permit approvals (with automatic approval if not met). To maintain fiscal responsibility, it includes a safeguard that would adjust tax rates if revenue loss exceeds 0.5% of state collections, while prohibiting targeted subsidies or preferential treatment for specific businesses. The program would expire in 2035 unless renewed by the legislature.
This bill exempts capital gains from gold, silver, and cryptocurrency transactions from West Virginia's personal income tax. It directly affects residents who sell these assets at a profit, as the state would no longer tax the gain. The key provision removes net capital gains from "precious metal bullion" (like gold/silver coins/bars) and "cryptocurrency" from taxable income under the state's tax code. This creates a specific tax exemption for these assets, distinct from other investment gains. The policy change would apply to all West Virginia taxpayers with qualifying gains, effective upon enactment.
SB 735 would eliminate West Virginia's corporate net income tax over a four-year period by reducing the tax rate annually until it reaches zero. The bill applies to corporations conducting business in the state, excluding those already exempt under current law. The key mechanism is a scheduled annual reduction in the tax rate, with the tax fully phased out by the end of the four-year period. This change would remove a direct tax on corporate profits, altering the state's primary revenue source for business taxation.
HB 5257 removes language requiring specific state funding appropriations for education services for children and adults in correctional facilities and regional jails. It amends West Virginia Code §18-20-5 to eliminate the current requirement that such education must be funded through dedicated state budget allocations. This change allows the State Board of Education, Department of Education, and State Superintendent to provide educational services in these facilities without needing separate annual funding bills. The bill directly affects incarcerated youth and adults who would continue to receive educational opportunities under existing state and federal requirements, contingent on available funding.
HB 5532 prohibits West Virginia counties and municipalities from imposing additional property taxes on residential rental properties beyond the rate applied to owner-occupied homes. It directly affects rental property owners and tenants by preventing local governments from charging higher taxes on rentals due to zoning classifications. The bill requires all county/municipal property taxes on rental properties to match those for owner-occupied homes and bans extra taxes based on zoning. This aims to reduce costs for tenants by preventing "double-taxing" that could raise rents, without altering sales or service taxes for businesses. The bill is currently in the House Finance Committee after introduction on February 16, 2026.
HB 5598 would increase West Virginia's general sales tax rate from 6% to 8% for most goods and services while repealing all state personal income tax provisions. The bill would change the sales tax calculation method for fractional dollar amounts as detailed in the current law. This would directly affect businesses that collect sales tax and consumers who purchase taxable goods and services, shifting the state's primary revenue source from income tax to sales tax.
HB 5519, the "West Virginia Tax Neutrality Act," would modify West Virginia's tax code to exclude capital gains from the sale of investment metal bullion and coins from state taxable income. It directly affects individuals, corporations, and fiduciaries who sell these specific investments. The bill requires taxpayers to subtract net capital gains from such sales (as defined in existing law) from their federal adjusted gross income when calculating their West Virginia state tax liability. This change aims to align West Virginia's treatment of these investments with federal tax rules, though the bill is still in early stages (introduced February 13, 2026, referred to House Finance).
SB 706 modifies West Virginia's severance tax for oil and natural gas producers by temporarily reducing the tax rate for newly drilled wells. It lowers the tax rate to 3% (from 5%) for 24 months starting from the first sale of natural gas or oil from wells drilled after June 30, 2026. This applies specifically to newly completed wells, while existing wells and other production types maintain their standard rates (2.5% or 5% depending on production volume and drilling method). The bill directly affects oil and gas producers who drill new wells after the effective date, offering a short-term tax incentive to encourage new development. The change is part of the state's severance tax structure under §11-13A-3a of the West Virginia Code.
