CHARLESTON, W.Va. (WSAZ) – An amended bill to repeal and replace West Virginia income tax was passed by the West Virginia Senate Wednesday night and is now on its way back to the House of Representatives.
The Senate Income Tax Bill was a revision of the original bill (House Bill 3300) that was passed in house. This bill aims to eliminate state income tax and replace revenue with a series of sales tax increases.
With the latest change, the entire invoice will be rewritten. It eliminates the food tax, lowers the VAT hike, and introduces a tax refund system for the state’s low-income earners. A recreational marijuana tax will also be phased out for tax hikes on coal and gas.
The Senators had considered a number of amendments to the Senate proposal that were released at Monday’s summit meeting with Governor Jim Justice. They included several changes, including new tax increases, to fill the budget gap that would arise from the abolition of state income tax.
Senate delays vote on income tax law
On Tuesday, the third reading of the bill was delayed after Governor Jim Justice introduced a fourth plan during a summit meeting to bring together Democratic and Republican leaders from the House and Senate.
W.Va. Gov. Justice Announces Justice 4 All Plan to Abolish State Income Tax
Governor Jim Justice on Monday unveiled a fourth plan to eliminate state income tax.
Under the Senate’s amended bill, income tax would be halved next year and reduced to zero in four years. The sales and use tax increases by 2%. Other changes include the removal of hotel tax fees. Legislature says measures would be taken to ensure there was no budget deficit.
In an exchange on Wednesday evening, Senator Mike Woelfel, D-Cabell, interviewed amendment writer Eric Tarr, R-Putnam, about part of the amendment on taxation of advertising.
He asked why the proposal does not tax digital advertisers like Google and Facebook, but rather local advertisers like TV and radio stations and newspapers.
Tarr said an amendment of this nature was not tabled.
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