CHARLESTON — Gov. Jim Justice presented his final fiscal year-end report on Monday, revealing that the state’s annual revenue surplus will lead to another decrease in personal income tax rates.
State revenue collections surpassed estimates by $826.6 million for Fiscal Year 2024, triggering either a 3% or 4% cut in personal income tax, as outlined by the trigger system in House Bill 2526, which the Governor signed in 2023.
“Today is truly a day for celebration in West Virginia,” Gov. Justice stated. “When I first took office, I promised you all a rocket ship ride, and look at us now. We’ve cut over a billion dollars in taxes, and it’s truly unbelievable. This is exactly what a responsible government should do for its people, especially in a state like ours. When the state does well, the people do well. That’s why we established these triggers. As West Virginia thrives, our people thrive and deserve that prosperity. We already have so much to be proud of, but there’s more work ahead. I won’t be your Governor much longer, and we need to continue marching towards eliminating the personal income tax. Doing so will only bring more and more people to this incredible place and promote even more goodness.”
The bill’s automatic trigger system reduces the personal income tax rate when revenue collections exceed the rate of inflation, the specifics of which will be released on July 11, 2024. This mechanism sets the state on a course to eventually eliminate its personal income tax. Additionally, Gov. Justice celebrated the end of the longstanding “pop tax,” a 1-cent tax that has been abolished as of today.
“Today we have another historic announcement, which seems like we get to do quite often in the Justice Administration,” remarked Larry Pack, Acting Secretary of the West Virginia Department of Revenue. “We’re cutting taxes across the board, yet our surplus keeps growing stronger. Under his leadership, we’ve experienced unprecedented economic growth. Gov. Justice is right; the last seven years have indeed been a rocket ship ride. West Virginia is truly experiencing something special, and we should all be proud to watch it happen.”
Gov. Justice also urged the legislature to consider additional tax cuts during a planned special session in August, where they will debate a child care tax credit he proposed during his 2024 State of the State Address, among other funding matters. Members of the West Virginia Legislature, including Speaker Roger Hanshaw and President Craig Blair, were present on stage with the Governor.
To date, Gov. Justice and the West Virginia Legislature have enacted over $1 billion in tax cuts for the people of West Virginia. Today’s tax cut will take effect on January 1, 2025. More information can be found on the West Virginia State Tax Department’s website.
