FISCAL NOTE
Date Requested: January 30, 2026
Time Requested: 06:09 PM |
| Agency: |
Tax & Revenue Department, WV State |
|---|
| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 3452 |
Introduced |
SB680 |
|
|---|
| CBD Subject: |
Taxation |
|---|
|
FUND(S):
General Revenue Fund
Sources of Revenue:
General Fund
Legislation creates:
Decreases Existing Revenue, Increases Existing Expenses, Decreases Existing Expenses
Fiscal Note Summary
Effect this measure will have on costs and revenues of state government.
Summarize in a clear and concise manner what impact this measure will have on costs and revenues of state government.
The stated purpose of this bill is to repeal the personal income tax and the corporate net income tax.
Per our interpretation, the bill would eliminate the Personal Income Tax and the Corporation Net Income Tax effective for tax years beginning on and after January 1, 2028. The effective date of the bill is July 1, 2026.
Per our interpretation, the legislation, if passed would decrease General Revenue fund collections by roughly $1 billion in FY2028 and by $2.6 billion in FY2029, the first full year of effect. By Statute, $30 million of annual personal income tax collections are dedicated to the Post Employment Benefit Trust Fund each year. Passage of this bill may impact upcoming transfers beginning as early as FY2029. Many corporations operate on a fiscal year. This estimate is based on current filing and payment trends. If additional corporations decide to move to a fiscal year filing period prior to January 1, 2028, the loss could be higher.
Additional administrative costs incurred by the State Tax Division would be $50,000 in FY2027. However, passage of the bill would eventually eliminate the personal income tax unit, withholding unit, and the corporate net income tax unit of the State Tax Department. Administrative cost reductions by the State Tax Department would be $2.7 million in FY2028 and in subsequent fiscal years.
Fiscal Note Detail
| Effect of Proposal |
Fiscal Year |
2026
Increase/Decrease
(use"-") |
2027
Increase/Decrease
(use"-") |
Fiscal Year
(Upon Full
Implementation) |
| 1. Estmated Total Cost |
0 |
50,000 |
-2,725,500 |
| Personal Services |
0 |
0 |
-2,500,000 |
| Current Expenses |
0 |
0 |
0 |
| Repairs and Alterations |
0 |
0 |
0 |
| Assets |
0 |
0 |
0 |
| Other |
0 |
50,000 |
0 |
| 2. Estimated Total Revenues |
0 |
0 |
-26,000,000,000 |
Explanation of above estimates (including long-range effect):
Please explain increases and decreases in personal services, current expenses, repairs and alterations, assets, other costs and revenues, including assumptions and data sources and delineation between start-up and ongoing costs. Please also include a long-range schedule of costs and revenues if fiscal impact is expected to vary in future years.
Per our interpretation, the bill would eliminate the Personal Income Tax and the Corporation Net Income Tax effective for tax years beginning on and after January 1, 2028. The effective date of the bill is July 1, 2026.
Per our interpretation, the legislation, if passed would decrease General Revenue fund collections by roughly $1 billion in FY2028 and by $2.6 billion in FY2029, the first full year of effect. By Statute, $30 million of annual personal income tax collections are dedicated to the Post Employment Benefit Trust Fund each year. Passage of this bill may impact upcoming transfers beginning as early as FY2029. Many corporations operate on a fiscal year. This estimate is based on current filing and payment trends. If additional corporations decide to move to a fiscal year filing period prior to January 1, 2028, the loss could be higher.
Additional administrative costs incurred by the State Tax Division would be $50,000 in FY2027. However, passage of the bill would eventually eliminate the personal income tax unit, withholding unit, and the corporate net income tax unit of the State Tax Department. Administrative cost reductions by the State Tax Department would be $2.7 million in FY2028 and in subsequent fiscal years.
Memorandum
Please identify any areas of vagueness, technical defects, reasons a bill would not have a fiscal impact, and/or any special issues not captured elsewhere on this form.
The stated purpose of this bill is to repeal the personal income tax and the corporate net income tax.
The bill “repeals” the Personal Income Tax located in W.Va. Code §11-21-1 et.seq. and the Corporate Net Income Tax under W.Va. Code §11-24-1 et. Seq. beginning January 1, 2028. However, there appears to be contradicting language regarding the date this bill takes effect because the bill also lists the internal effective date for both Articles 21B and 24A as July 1, 2026.
It is recommended that this bill should include amendments to W.Va. Code §11-21-1 and W.Va. Code §11-24 relating to the date both cease to be effective.
Person submitting Fiscal Note: Mark Muchow
Email Address: radfiscal@wv.gov