CHARLESTON — Gov. Jim Justice delivered his final fiscal year-end report Monday, announcing that the annual revenue surplus will trigger another reduction in personal income tax rates.
State revenue collections exceeded estimates by $826.6 million for Fiscal Year 2024, enabling a 3% or 4% personal income tax cut, as set 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 said. “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, which will be announced on July 11, 2024. This trigger puts the state on a path to eliminating its personal income tax. Additionally, the Governor celebrated the end of the longstanding “pop tax,” a 1-cent tax, which has been eliminated as of today.
“Today we have another historic announcement, which seems like we get to do quite often in the Justice Administration,” Larry Pack, Acting Secretary of the West Virginia Department of Revenue, said. “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 asked the legislature to consider additional tax cuts when they come to town for a planned special session in August as they consider a child care tax credit, which he proposed during his 2024 State of the State Address, among other funding matters. The Governor was joined by members of the West Virginia Legislature on stage today, including Speaker Roger Hanshaw and President Craig Blair.
To date, Gov. Justice and the West Virginia Legislature have delivered over $1 billion in tax cuts to the people of West Virginia. Today’s tax cut begins on January 1, 2025. More information is available on the West Virginia State Tax Department’s website.
