FISCAL NOTE
Date Requested: January 15, 2026
Time Requested: 05:01 PM |
| Agency: |
Tax & Revenue Department, WV State |
|---|
| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 2374 |
Introduced |
SB397 |
|
|---|
| CBD Subject: |
Taxation |
|---|
|
FUND(S):
General Revenue Fund
Sources of Revenue:
General Fund
Legislation creates:
Decreases Existing Revenue, Increases Existing Expenses
Fiscal Note Summary
Effect this measure will have on costs and revenues of state government.
The stated purpose of this bill is to reduce the corporate net income tax.
Per our interpretation, the bill would reduce the Corporate Net Income tax rate from 6.5 percent to 3.25 percent. The rate decrease would be effective for taxable periods beginning on or after January 1, 2027.
According to our interpretation, the bill, if passed, would reduce General Revenue Fund collections by roughly $27.0 million in FY2027, $137.3 million in FY2028, and by increasing amounts in subsequent fiscal years.
Additional administrative costs incurred by the State Tax Division would be $5,500 in FY2027.
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 |
5,500 |
0 |
| Personal Services |
0 |
0 |
0 |
| Current Expenses |
0 |
0 |
0 |
| Repairs and Alterations |
0 |
0 |
0 |
| Assets |
0 |
0 |
0 |
| Other |
0 |
0 |
0 |
| 2. Estimated Total Revenues |
0 |
-27,000,000 |
-137,300,000 |
Explanation of above estimates (including long-range effect):
Per our interpretation, the bill would reduce the Corporate Net Income tax rate from 6.5 percent to 3.25 percent. The rate decrease would be effective for taxable periods beginning on or after January 1, 2027.
According to our interpretation, the bill, if passed, would reduce General Revenue Fund collections by roughly $27.0 million in FY2027, $137.3 million in FY2028, and by increasing amounts in subsequent fiscal years.
Additional administrative costs incurred by the State Tax Division would be $5,500 in FY2027.
Memorandum
Person submitting Fiscal Note: Mark Muchow
Email Address: RADfiscal@wv.gov