CHARLESTON, W.Va. — Gov. Patrick Morrisey signed the bill reducing the state’s personal income tax by 5 percent into law Tuesday.
SB 392 will take effect in mid-June.
Morrisey ask lawmakers during his State of the State Address to cut the tax by 10 percent. Lawmakers found out the next day Morrisey’s proposed budget only made way for a 5 percent cut. He said repeatedly during the 60-day session he wanted to work with lawmakers to fund the other 5 percent.
A 10 percent cut would have equated to roughly $250 million in state revenue.
The original version of the Senate budget reflected a tax cut of that 10% amount with a vape tax increase had been meant as a partial offset.
The House of Delegates, though, expressed strong concerns about whether the state could truly absorb a 10% tax cut right now. That chamber settled on the 5% cut instead and removed the vape tax.
After the vape tax increase was removed, Senate Finance Committee Chairman Jason Barrett, R-Berkeley, told MetroNews. “It’s important to us here in the Senate on Day 60 to ensure we get a tax cut rather than send a bill back to the House and try to get $16- or $20 million in a vape tax.
“The important part is, the people in West Virginia are going to receive a 5% personal income tax cut and that’s where the focus of the Senate has been to be able to provide the largest tax cut we could get the people to agree to.”
Morrisey has until Wednesday night to make decisions on bills passed in the session or they become law without his signature.