Personal Income Tax Story Archives - West Virginia Public Broadcasting

State Revenue Down Slightly From Last November

West Virginia collected 1 percent less revenue in November 2024 than in November 2023. Figures for the fiscal year as a whole show a more significant decrease.

West Virginia took in roughly 1 percent less revenue last month than it did in November 2023, according to new data from the West Virginia State Budget Office.

The state collected slightly more than $400 million last month, roughly $4 million less than it did in November 2023. November’s revenue still exceeded State Budget Office estimates for the month by more than $18 million, and the state is on track with estimates set for the fiscal year.

While the latest figures show only a slight decrease from last November, longer-term data suggests a more significant revenue decline. The state has collected 5 percent less revenue this fiscal year than it did this time last year.

In part, the decline comes from recent reductions to the state’s personal income tax, which is collected as part of the state revenue. In 2023, West Virginia slashed income tax by more than 20 percent, the largest cut in state history.

Critics of the tax cuts have said reducing state revenue means reducing funding on hand for state programs and social services. Proponents say lower costs make the state more enticing for prospective businesses and residents.

Meanwhile, population decline across the Mountain State means fewer people paying taxes to the state government. West Virginia lost more than 3 percent of its population between 2010 and 2020, according to the United States Census.

As his tenure comes to a close, Gov. Jim Justice has pursued further tax reductions for the state, though their implementation would be overseen by his successor, Governor-elect Patrick Morrisey.

Most recently, that included an additional 4 percent reduction to the state’s personal income tax in August that will take effect Jan. 1.

Time To Start Thinking About, Preparing For Tax Season

The Internal Revenue Service (IRS) is reminding people of simple steps they can take now to prepare to file their 2024 federal tax returns.

April 15 is months away, but the Internal Revenue Service (IRS) is reminding people of simple steps they can take now to prepare to file their 2024 federal tax returns.

Rodney D. Bearman — IRS public affairs specialist for Maryland, Virginia and West Virginia — said preparations like collecting important documents and banking information is key to a successful and easy filing.

“As with most significant events, preparation is the key to success,” Bearman said. “Having well organized tax records can make filing a complete and accurate return easier and help avoid errors that can potentially delay any refund that you may have.”

Bearman directed taxpayers to irs.gov, which hosts resources like an individual online account as well as tips, tricks and other information to simplify filing. One simple tool with a potentially big effect on tax bills is a tax withholding estimator

“If you’ve ever filed your taxes and had a large refund, or owed a significant amount, that’s an unpleasant surprise come filing season,” Bearman said. “Using the tax withholding estimator, you plug in your information, it’s safe and it’s secure, will help a taxpayer understand what they need to adjust to withholding so that they avoid a surprise come filing season.”

Taxpayers can also get help on the website finding reputable tax preparers, as well as low income preparation resources via the Volunteer Income Tax Assistance (VITA) program and the Tax Counseling for the Elderly (TCE) programs.

“It’s important to know that the IRS supports and understands that taxpayers will always have choices when it comes to filing their return,” Bearman said. “And in order to help taxpayers, the IRS has resources to help choose a tax professional on irs.gov, and taxpayers can find information to get them connected with free filing programs like VITA or TCE.”

Bearman suggests taxpayers file electronically and choose direct deposit for the fastest and safest refunds.

Coal’s Use Beyond Energy And Special Session Updates, This West Virginia Morning

On this West Virginia Morning, Curtis Tate spoke with a coal executive about what else the mineral can do, and updates from the legislature’s second special session.

On this West Virginia Morning, Pennsylvania-based Consol Energy announced it would merge with St. Louis-based Arch Resources to form Core Natural Resources. The combined company won’t just produce coal for generating electricity or making steel. Curtis Tate spoke with Dan Connell, senior vice president for Consol Energy , about what else coal can do.

And reporters Briana Heaney and Caelan Bailey have the latest from the West Virginia Legislature’s second special session of the year, including another cut to the state’s income tax and an embattled child tax care credit.

West Virginia Morning is a production of West Virginia Public Broadcasting, which is solely responsible for its content.

Support for our news bureaus comes from Shepherd University and Marshall University School of Journalism and Mass Communications.

Maria Young produced this episode.

Listen to West Virginia Morning weekdays at 7:43 a.m. on WVPB Radio or subscribe to the podcast and never miss an episode. #WVMorning

Legislature Sends Tax Cut To Governor’s Desk

The House of Delegates passed the Senate’s revised bill to cut income tax rates by 2 percent Tuesday after Gov. Jim Justice amended his special session call from a 5 percent income tax cut to a 2 percent income tax cut.

Updated on Oct. 9 at 3:15 p.m.

The Senate passed the 2 percent cut Monday, and the House debated the bill 40 minutes.

“Although I had publicly said that I was all in favor of 5 percent obviously my counterpart in the Senate has emphatically said no,” Del. Vernon Criss, R-Wood, said, referencing Sen. Eric Tarr’s, R-Putnam, opposition to the 5 percent cut. “So as we go along through the exercise of legislation, we have gotten a new message from the governor to do a 2 percent cut.”

Del. Mike Pushkin, D-Kanawha, introduced two amendments: one that would increase the tax cut back to 5 percent and another that would require permanent foster care placement for all children in the state within 30 days after the 2 percent cut was passed. The House rejected both.

“The average working class West Virginian’s maybe going to get like 40 cents a week, not a whole lot for a 2 percent income tax cut,” Pushkin said.

Republicans in the House voiced support for a tax cut to directly return money to West Virginians, compromising with the Senate’s version.

The fiscal note for the bill lists the cost of the tax cut at $46 million upon full implementation. Secretary of Revenue Larry Pack, part of the governor’s office, told the House Finance Committee Sept. 7 that the 2 percent cut could be funded with $19 million from a paid-off bond and $25 million is from cost-saving measures after breaking up the Department of Health and Human Resources.

The Department of Human Services referred WVPB to the Governor’s office when asked for cost-saving details.

**Editor’s Note: This story was updated to include the bill’s fiscal note and correct the total cost of the bill to $46 million and DHS’ response.

Justice Discusses Plans For Special Session, But No Formal Call Yet

Gov. Jim Justice announced a second special session at the start of September, but a formal call has been made.

A special session is expected to start on Monday, but details of the session have not been announced.

Gov. Jim Justice announced a second special session at the start of September to tackle a proposed additional 5 percent income tax cut, and to address child care in the state. Another special session in May focused primarily on supplementing and amending appropriations.

But the governor has not formally called the legislature to convene Sept. 30, and no draft bills have emerged.

During a regular press briefing Friday, Justice told reporters that planning and discussion are ongoing.

“We’re still naturally finalizing different things, and we all want the same thing. We’re all really working together,” he said “Well, this is not like a food fight that’s going on or whatever, like that. It’s working together well.”

The governor said he expects the session to take multiple days, but does not want to waste state money or legislators’ time, especially if there is no guarantee of certain bills’ passage.

“If I were told at the 11th hour, ‘We’re not going to vote for this,’ or ‘We’re going to vote for a child care tax break, we’re not going to do that at all.’ Well, I mean, you know, why waste our time?” Justice said. “We’ve got plenty of things to do, really and truly, if all we’re going to do is bring people down and spend state dollars and they’re not going to get anything done on an issue, we don’t need that issue.”

On the issue of child care, Justice said the solution he hoped to see would be twofold. He proposed a one-time, merit-based fund administered through Workforce West Virginia to subsidize child care centers complimented by a tax credit.

“We’re going to add right with that, a state tax break to our families that are having child care,” Justice said. “It’s a complex issue and it’s a national issue, but we’re going to take it on. We won’t fix everything completely. We won’t do that. At the same time, if we can help what we want to do.”

Since the death of Kyneddi Miller earlier this year, legislators and advocates have discussed legislation to further regulate homeschooling being included in a special session. On Friday, Justice said a draft was being worked on, but that it was a complicated issue that may be better left to the general session in January.

“We’re trying,” he said. “We understand and the tragedy of circumstances that have happened with folks. We need to do better. There’s no question we need to do better. But boy, what a complex issue. And if we don’t watch out, this may be better in a general session than in a special session to tell you true.”

State Lowering Revenue Estimates For Current Fiscal Year

Two months into fiscal year 2025, the state is reducing its revenue estimates.

Mark Muchow, deputy secretary for the Department of Revenue, told members of the Legislative Joint Standing Committee on Finance Monday that revenue for the year is expected to be nearly 8 percent lower than estimated in the spring.

That is a difference of $446 million compared to original estimates. The higher numbers were used to create the current fiscal year’s budget.

Muchow explained that several factors are contributing to the reduced estimate. They include:

The phase-in of the personal income tax cuts, specifically the property tax rebate credits, which are expected to reduce personal income tax collections.
The 4 percent personal income tax rate reduction scheduled to take effect on January 1, 2025. In 2023, when the legislature passed the 21.25 percent personal income tax cut, it set up triggers to further reduce tax. The first trigger has been met and will reduce personal income taxes further.
Additionally, corporate income tax collections and lower interest income projections due to expected lower interest rates and the timing of capital improvement project expenditures.

The state ended the 2024 fiscal year with a budgetary excess of $632 million dollars.