West Virginia lawmakers OK bills on income tax cut and child care tax credit
CHARLESTON, W.Va. (AP) — Bills aimed to reduce West Virginians’ income tax burden are headed to the desk of Gov. Jim Justice.
One would reduce the state personal income tax by 2%. Another would provide a tax credit to help families pay for child care. The Republican governor is expected to sign both proposals, after they passed final legislative hurdles Tuesday during a special legislative session called by Justice.
Cuts to the state personal income tax have been a priority for Justice, who is nearing the end of his second term as governor and running for the U.S. Senate. He signed a 21.25% tax cut into effect last year, and the tax is scheduled to drop by another 4% in the new year, per a trigger in the 2023 law that allows for further tax cuts if the state meets higher-than-anticipated revenue collections.
Justice had initially been pushing the Legislature to consider cutting the tax a further 5% but amended that proposal to a more conservative 2% cut Monday.
A 2% cut in personal income tax rates would take effect on the first day of the new year and return approximately $46 million to taxpayers. Del. Vernon Criss, the House Finance Committee chair, said he would have preferred a 5% tax cut, but an agreement couldn’t be made with the Senate to support that.
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