Bill Text: WV HB225 | 2024 | 2nd Special Session | Introduced
Bill Title: Reducing the personal income tax
Spectrum: Bipartisan Bill
Status: (Introduced) 2024-09-30 - To House Finance [HB225 Detail]
Download: West_Virginia-2024-HB225-Introduced.html
WEST VIRGINIA LEGISLATURE
2024 SECOND EXTRAORDINARY SESSION
Introduced
House Bill 225
By Delegates Hanshaw (Mr. Speaker) and Hornbuckle
[By Request of the Executive]
[Introduced; referred
to the Committee on.]
A BILL to amend and reenact the Code of West Virginia, 1931, as amended by adding thereto a new section, designated §11-21-4i, relating to personal income tax; providing for reduced graduated income tax rates; reducing the rate of tax on certain composite returns; reducing the rate of withholding tax on nonresident income; reducing the rate of withholding tax on the nonresident sale of real estate; reducing the rate of withholding on lottery winnings; applying reduced rates beginning January 1, 2025; providing for contingent additional future reductions in the personal income tax rates when certain criteria have been met; and providing effective dates.
Be it enacted by the Legislature of West Virginia:
Article 21. personal income tax.
§11-21-4i Rate of tax — Beginning January 1, 2025.
(a) Rate of tax on individuals (except married individuals filing separate returns), individuals filing joint returns, heads of households, and estates and trusts. — Beginning January 1, 2025, the tax imposed by W. Va. Code §11-21-3 on the West Virginia taxable income of every individual (except married individuals filing separate returns); every individual who is a head of a household in the determination of his or her federal income tax for the taxable year; every husband and wife who file a joint return under this article; every individual who is entitled to file his or her federal income tax return for the taxable year as a surviving spouse; and every estate and trust (except non-grantor trusts administered by licensed private trust companies created pursuant to the provisions of W. Va. Code §31I-1-1 et seq. shall be determined in accordance with the following table:
If the West Virginia taxable
income is: The tax is:
Not over $10,000 2.16% of the taxable income
Over $10,000 but not over $25,000 $216 plus 2.87% of excess over $10,000
Over $25,000 but not over $40,000 $646.50 plus 3.23% of excess over $25,000
Over $40,000 but not over $60,000 $1,131 plus 4.3% of excess over $40,000
Over $60,000 $1,991 plus 4.67% of excess over $60,000
(b) Rate of tax on married individuals filing separate returns. — In the case of husband and wife filing separate returns under this article for the taxable year, the tax imposed by W. Va. Code §11-21-3 on the West Virginia taxable income of each spouse shall be determined in accordance with the following table:
If the West Virginia taxable
income is: The tax is:
Not over $5,000 2.16% of the taxable income
Over $5,000 but not over $12,500 $108 plus 2.87% of excess over $5,000
Over $12,500 but not over $20,000 $323.25 plus 3.23% of excess over $12,500
Over $20,000 but not over $30,000 $565.50 plus 4.3% of excess over $20,000
Over $30,000 $995.50 plus 4.67% of excess over $30,000
(c) Effect of rates on Nonresident Composite and Withholding Obligations — Notwithstanding any provision of this article to the contrary, for taxable years beginning on and after the retroactive date specific in W. Va. Code §11-21-4g(d), whenever the words "six and one-half percent" appear in W. Va. Code §11-21-51a, §11-21-71a, §11-21-71b, or §11-21-77, with relation to a tax return of, or the tax rate imposed on income of individuals, individuals filing joint returns, heads of households, and estates and trusts (except non-grantor trusts administered by licensed private trust companies created pursuant to the provisions of W. Va. Code §31I-1-1 et seq., the stated percentage shall be changed to 4.67%.
(d) Applicability of this section. — Beginning January 1 2025, the reduction of tax, and the corresponding rates of tax issued by the Tax Commissioner pursuant to the provisions of W. Va. Code §11-21-4h are further reduced by five percent. The provisions of this section shall be applicable in determining the rates of tax imposed by this article beginning January 1, 2025: Provided, That the tax rates specified in this section shall continue to be adjusted in accordance with W. Va. Code §11-21-4h and may be superseded by any rates determined by that section.
NOTE: The purpose of this bill is to authorize up to a 5% additional reduction of the personal income tax rate beginning January 1, 2025.
Strike-throughs indicate language that would be stricken from a heading or the present law and underscoring indicates new language that would be added.
