Repealing personal income tax and corporate net income tax
SB 680 would repeal West Virginia’s personal income tax and corporate net income tax. The bill adds two new articles to the state code to eliminate Chapter 11, Article 21 (personal income tax) and Chapter 11, Article 24 (corporate net income tax), and states that no personal income tax would be imposed on income earned on or after January 1, 2028, and no corporate net income tax would be imposed for taxable years beginning on or after that date.
The bill also provides transition rules for taxes already owed for prior tax years, preserves the state’s ability to collect outstanding liabilities, and directs the State Tax Commissioner to handle final returns, audits, refunds, assessments, and related administrative closeout. It includes conforming repeals and amendments for code provisions tied to withholding, estimated payments, credits, penalties, interest, and other tax administration provisions, and authorizes emergency and legislative rulemaking to implement the transition.
If enacted, SB 680 would substantially alter West Virginia’s tax code by removing two major state revenue sources and requiring broad conforming changes throughout the code. It would affect individual taxpayers, employers, corporations, and the State Tax Department, while preserving collection authority for liabilities incurred before the repeal takes effect. The bill’s effective date is July 1, 2026, but the tax repeal would not apply until 2028, giving the state time to administer final filings and transition away from the repealed taxes.
The bill text reflects a strongly pro-repeal policy position, arguing that income and corporate taxes burden residents and businesses and that repeal would improve competitiveness, attract employers, and support job creation. No committee transcript or vote record is provided, so there is no recorded legislative debate or roll-call sentiment in the supplied materials. Based on the bill’s findings, the measure is framed as an economic-growth and tax-relief proposal rather than a compromise bill.
The central point of contention is fiscal: supporters assert that West Virginia can replace the lost revenue through alternative tax structures, spending discipline, and economic growth, while opponents would likely focus on the risk to state revenue stability and public services. Another likely issue is the transition period, including how final returns, audits, refunds, withholding, and outstanding liabilities would be handled before the 2028 repeal date. Because no committee discussion or votes are included, specific named opponents or supporters are not identified in the record provided.