CHARLESTON, WV (WVNS) – Gov. Jim Justice announced in yesterday’s press briefing that he is proposing a permanent 10% cut of the personal income tax.
The Governor made this announcement during a press briefing at the capitol yesterday, July 6, 2022. The Governor’s 10% tax cut as proposed would be retroactive to the beginning of the 2022 calendar year. This would end up putting nearly $250 million back in the pockets of West Virginians.
“Cutting our personal income tax will put money in your pocket and bring prosperity to our state for generations. But we need to act now, especially when you consider the unbelievable economic growth we’ve achieved this year,”Governor Jim Justice (R-WV)
The Governor announced that he will call a Special Session of the West Virginia Legislature to meet from July 24 through July 26 to allow legislators to vote on his proposal.
The Governor’s proposal is simple enough to be contained in a two-page bill. The bill is a cut with no other material attached, reducing the Personal Income Tax without raising any other taxes in the process.
The 10% personal income tax reduction is the maximum amount that can be cut while remaining in compliance with funding stipulations in the American Rescue Plan Act (ARPA).
“We would cut even more if it weren’t for these federal regulations. Under the current guidelines, this is absolutely the most money we can put back in the pockets of hardworking West Virginians. I wish we could eliminate the personal income tax altogether, but we need to get the ball rolling – now more than ever. In the past year, gas prices have gotten out of control and inflation is through the roof. West Virginians need help right now.”Governor Jim Justice (R-WV)
If the Legislature passes his bill, the reduction will be automatic on October payroll withholding, and applies to September 15 estimated tax payments as well. The retroactive amount will come as a refund when West Virginians file their 2022 taxes.