Governor Calls Legislative Special Session For Proposed Personal Income Tax Cut

Gov. Jim Justice has called a special session of the state legislature for Monday, July 25.

The special session call contains one item: the governor’s proposal to reduce West Virginia’s personal income tax.

Under the proposal, an aggregate 10 percent tax cut would be retroactive back to January 1, 2022.

The full text of the proposed legislation can be read here.

In a press release announcing the special session, Justice reiterated his desire to completely eliminate the state’s personal income tax, and said the proposed cut would “get the ball rolling.”

Justice and proponents of personal income tax reduction in the legislature have categorized the state’s personal income tax as a burden they hope to lift from West Virginians, enticing new residents to relocate to the state in the bargain. They cite states like Florida, Texas and Tennessee as examples of growth and immigration without the imposition of a personal income tax.

A prior attempt to reduce the personal income tax during the legislature’s 2021 regular session failed after the House rejected a Senate proposal to raise other taxes to balance the state budget. Under this proposal, there are no proposed tax increases to offset the losses, estimated to be $250 million annually.