W.Va. Joins 39 Other States Without Social Security Tax

Single filers who made over $50,000 per year, and joint filers who made over $100,000 per year used to have to pay taxes on social security income. However the legislature passed, and the governor signed, a bill that will eliminate the tax for all earners.

Single filers who made over $50,000 per year, and joint filers who made over $100,000 per year used to have to pay taxes on social security income. However the legislature passed, and the governor signed, a bill that will eliminate the tax for all earners.

Gaylene Miller, state director for AARP says this will affect the more than 50,000 West Virginians who were paying Social Security tax. 

“We heard loud and clear from our members that that’s double taxation,” Miller said. “They paid on that income when they were in the workforce. Social Security, thankfully, was never intended to fund the state government.”

The cut will take place over the course of three years, progressively cutting down how much Social Security earners pay each year. The law is backdated to cover all of 2024. 

Some lawmakers raised questions around the bill asking if it was a worthy expenditure on the premise that retirees are not as beneficial to the state’s economy as working age individuals. And that this money could be used elsewhere to attract and retain working age West Virginians to the state. However, Miller said this tax cut will likely be recycled back into local economies. 

“Those folks who get this meaningful tax relief will spend it in the community. So, it’s being reinvested,” Miller said. “It’s an attraction for retirees to come to West Virginia as well.” 

The cut will put West Virginia in line with all of its border states of Virginia, Ohio, Maryland, Kentucky, and Pennsylvania that have no tax on Social Security.

Drug Test Strips, Taxes, Natural Hair And Transgender Rights, This West Virginia Week

On this West Virginia Week, we continue our coverage of the West Virginia Legislative session with discussions from lawmakers and community stakeholders. We’ll listen back to a few of our conversations with our guests on our program The Legislature Today as they discuss taxes, natural hair and trans rights.  

On this West Virginia Week, we continue our coverage of the West Virginia Legislative session with discussions from lawmakers and community stakeholders. We’ll listen back to a few of our conversations with our guests on our program The Legislature Today as they discuss taxes, natural hair and trans rights.  

We also hear about drug testing strips, new potato chips and the state’s broadband future.

Chris Schulz is our host this week. Our theme music is by Matt Jackfert.

West Virginia Week is a web-only podcast that explores the week’s biggest news in the Mountain State. It’s produced with help from Bill Lynch, Briana Heaney, Chris Schulz, Curtis Tate, Emily Rice, Eric Douglas, Jack Walker, Liz McCormick, and Randy Yohe.

Learn more about West Virginia Week.

Justice: September Revenue Numbers Show Surplus Growth Return

In a Justice administration media briefing Friday afternoon, Revenue Secretary Dave Hardy said September revenues were $210 million above than the estimated budget

West Virginia’s state administrators note that this month’s state budget numbers show the personal income tax cut is not hurting but helping revenue collections.  

With revenue amounts for July and August prompting administrative concern, July being about $7 million, Gov. Jim Justice said the September numbers were really good news. 

In a Justice administration media briefing Friday afternoon, Revenue Secretary Dave Hardy said September revenues were $210 million above the estimated budget. 

Hardy said even with the 21.25 percent personal income tax cut that passed earlier this year, the state is breaking even with income tax collections compared to where it was a year ago.  

“That means that we have grown our personal income tax income about 20 percent,” Hardy said. “That’s the story for September, that the state income taxes and our incomes are growing to show that type of revenue growth in such a quick way.”

Hardy said September corporate net income tax collections were $54 million above estimate, growing by 2.2 percent compared to a year ago.

 He also said the consumer sales tax was $11.2 million above estimate for September, almost 10 percent above where it was for September 2022.

Independent budget analysts have repeatedly said the Justice administration sets its monthly revenue estimates artificially low.  

Severance Tax Shortfalls Could Challenge Record Budget Surplus Numbers

Decreases were expected in personal income tax revenues – and in severance taxes relating to a fluctuating coal, gas and oil market.

Breaking down West Virginia’s $1.8 billion surplus from the past fiscal year, while projecting a 2024 budget, Department of Revenue Deputy Secretary Mark Muchow told members of the legislative Joint Committee on Finance that while funding increases were consistent across the board, decreases were expected in personal income tax revenues – and in severance taxes relating to a fluctuating coal, gas and oil market.   

“We also expected a big reduction in severance tax due to lower energy prices,” Muchow said. “Here we have a reduction of $633 million, and the official estimate is 66.9 percent.”

Muchow said recent monthly severance tax collections are currently exceeding budget estimates and will be closely monitored going forward.  He said energy production was not the problem.

“Coal production is up 5.9 percent,” Muchow said. “We’re on target for 90 million tons of coal. And natural gas production is up 9.9 percent. It’s all about the price. The math is pretty easy, our tax is 5 percent of the price. So we will rise or fall on price. And we had a very warm winter last winter. Who knows what’s coming in the future?”

Gov. Jim Justice has said new workers and their families coming to West Virginia will offset the 21.25 percent personal income tax cut implemented this year. 

Revenue Secretary Dave Hardy noted that these revenue streams tend to slow down in July and August.

“As of the end of August our consumer sales tax revenue was up 2.5 percent from a year ago,” Hardy said. “Our personal income tax revenue as of the end of August, was down 16.2 percent. Well, we did a 21.25 percent income tax reduction. So, the fact that our revenue is only down 16.2 percent in the personal income tax category means that we still have real growth in income in our state.” 

Hardy said the personal income tax cut will put a projected $696 million back into citizens pockets through the PIT reduction.

Senators Look Both Ways On Legislative Activity

With the sixty-day legislative session over, legislators and West Virginians have a chance to reflect on what was accomplished and look forward to what still needs to be done for the state. 

With the sixty-day legislative session over, legislators and West Virginians have a chance to reflect on what was accomplished and look forward to what still needs to be done for the state. 

Senate President Craig Blair, R-Berkeley, took a break from his duties just before midnight Saturday night to say the accomplishments of the 2023 Legislature rank among the best he’s ever seen.

“I’ve been doing this since 2003. And I believe that this was the best session that we’ve had in this state,” he said. “Since I’ve been here, and maybe since I’ve been alive, never before have we been able to give a tax reduction, been able to grow our state, our economy, and do the things that the people of West Virginia want and need. We did work on education. There’s a whole host of things that we got across the finish line. I’ll still be trying to figure out everything that we got passed tomorrow.”

The legislature passed a tax cut plan that includes a 21.25 percent reduction in personal income taxes, with a mechanism to further reduce personal income taxes in the coming years. Retroactive to Jan. 1, 2023, the tax reduction package, including a rebate on personal property and small business inventory taxes, represents a $754 million cut in taxes.

Even with so much activity, and especially in the final week, Blair acknowledges that there is always more to be done.

”There’s always things that are left undone, and I can’t tell you what those are right now,” Blair said. “(There’s) still more things to do for education, there’s more things to do to make it so that businesses want to locate here, but to a greater degree. We keep getting better and better by what we’re doing. More than anything. It’s the efficiencies of the Senate.” 

Blair said that since Republicans have taken control of the Senate, there has been a daily meeting held each morning at 7:30 a.m. for party members to caucus and discuss pending issues. He also pointed to ending what he called “Senate time,” instead opting to start meetings and floor sessions on time.

“You have to admit, people thought that it’s going to be a hard time with 31 Republicans, that they’d be fighting with each other,” Blair said. “With the exception of yesterday’s outburst by one of my members, they operate as a team, as a unit, what’s good for the people of West Virginia. And I’m proud of them all.”

Blair is referring to an incident Friday morning where Sen. Robert Karnes, R-Randolph, was removed from the Senate floor after repeated outbursts claiming violations of Constitutional rules.

A Democrat’s Perspective

Sen. Mike Caputo, D-Marion, said the Republican supermajority is concerning. 

“When bills are running that I believe will harm workers, I’m going to speak up. When I believe bills are being run that would harm people who maybe don’t look like us or love like us, I’m going to speak up, somebody’s gotta be that voice down here,” he said. “It can’t be one sided. These huge majorities, in my opinion, is just not good for government. There needs to be more of a balance, but that’s up to the voters, I don’t have any control over that.” 

Caputo is one of three Democrats in the Senate this year and on the House of Delegates side, there are only 12 Democrats. 

“As long as the people have sent me down here, I have not changed my ways, and I’ve been here 27 years,” Caputo said. “I just gotta assume that the people that sent me here want me to continue advocating for what I’ve done since day one, and I’m going to continue to do that as long as either I decide to run or until the people back home decide it’s time for a new voice.”

He acknowledged that being part of the “superminority” has limited his ability to impact legislation, but he still did what he could to help his constituents.  

“You try to do the best you can with what you have and try to put forth amendments that you think the committee would support,” Caputo said. “I got to say, Chairman Charlie Trump has been more than gracious to me. We’ve had a long-time relationship, friendship. I can just be the voice for the people to send me down here and do the best I can.” 

Protecting Children

Senate Judiciary Committee Chair Sen. Charles Trump, R-Morgan, highlighted the constitutionally required judicial redistricting as one of the most important achievements of the session. He also highlighted an issue that will require the continued attention of the legislature, but one he hopes will improve thanks to laws passed in the 60 days.

“There are always things that need to be done. One of the things that we’ve been working hard on, I’ve been working hard on, is trying to address the Child Protective Services crisis in our Eastern Panhandle,” Trump said. “We just don’t have caseworkers, and calls and referrals to the hotline about abused and neglected children are not being investigated. We’ve got to solve that.”

Trump was the lead sponsor of a bill that reallocates the state’s child protective workers based on county population and caseload and spoke in favor of a bill updating the authority of the Foster Care Ombudsman.

“We got a number of bills, plus some extra appropriations across the finish line this year, that I’m really hoping and praying are going to help solve that problem,” he said. “I’m hoping that some of the measures we passed will help to do that, so that we can get people that can go out and knock on a door and lay eyes on a child to see if you know the child is indeed being subjected to abuse or neglect.”

Key Education Bill Comes Down To The Final Bell

Senate Education Committee Chair Sen. Amy Grady, R-Mason, also had her focus set this session on helping children. The Third Grade Success Act, a key piece of legislation that will put money and resources behind improving early childhood literacy in schools, came down to the wire Saturday night. 

“We’re waiting for the message, I just saw a runner go by. I hope that that was the message they were carrying so we can look at it and hopefully concur. That’s the plan,” Grady said around 10 p.m. Saturday. “I guess we want to go out on this session with a bang, with the most important piece of legislation that I feel this session.”

The Third Grade Success Act passed just before the Senate adjourned for the year. Grady, who is also a teacher, said she was excited to get back to her classroom this week, but she also acknowledged more needs to be done for her fellow teachers.

“The pay raise, it does help a little bit. But I wish we would have gotten some more things across the finish line that dealt with their personal leave days,” Grady said. “That would keep teachers in the classroom. We’re mentally burnt out, we’re emotionally burnt out, we’re really exhausted physically from everything that we’re doing. So it’s easy to take a day for yourself if those days don’t really matter in the end anyway. That was a goal that I wanted to accomplish, and so we’re gonna try again next year.”

The work of the legislature never truly ends, and interim sessions are likely to be announced for the coming months soon.

Justice Signs Tax Bill Into Law, Lawmakers Discuss PEIA Changes

On this episode of The Legislature Today, Gov. Jim Justice signed House Bill 2526 into law today. The bill includes a 21.25 percent tax cut across all six income brackets, with the governor’s office calling it the largest tax cut in state history. Government reporter Randy Yohe has the story.

On this episode of The Legislature Today, Gov. Jim Justice signed House Bill 2526 into law Tuesday. The bill includes a 21.25 percent tax cut across all six income brackets, with the governor’s office calling it the largest tax cut in state history. Government reporter Randy Yohe has the story.

With the signing of the bill, lawmakers have taken a significant step towards finalizing a budget. However, there are still some coronavirus relief monies yet to be appropriated, and significant debate on how to use them. Reporter Chris Schulz has more.

Yohe also sits down with Del. Matthew Rohrbach, R-Cabell, and House Minority Leader Doug Skaff, D-Kanawha, to discuss changes to the Public Employees Insurance Agency as Senate Bill 268 has passed through both chambers and is on the way to the governor’s desk. 

It was also deaf awareness day at the Capitol, an event of understanding and education for all West Virginians. 

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The Legislature Today is West Virginia’s only television/radio simulcast devoted to covering the state’s 60-day regular legislative session.

Watch or listen to new episodes Monday through Friday at 6 p.m. on West Virginia Public Broadcasting.

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