CHARLESTON, W.Va. (WSAZ) – The West Virginia Senate passed an amended bill Wednesday night with the goal of repealing and replacing the West Virginia personal income tax and now returning to the House.
The Senate income tax bill was a rewrite of the original bill (Bill 3300) passed in the House. This bill seeks to eliminate the state personal income tax and replace income with a series of sales tax increases.
The latest amendment rewrites the entire bill. It eliminates food tax, reduces the sales tax increase, and introduces a tax refund system for the lowest in the state. It also changes a tax on recreational marijuana to increase taxes on coal and gas.
Senators had been considering several amendments to the Senate proposal that came out of Monday’s summit with Gov. Jim Justice. They included several amendments, including new tax increases to cover the budget gap that would be created by eliminating the state income tax.
The Senate delays voting on the income tax bill
On Tuesday, the third reading of the bill was delayed after the introduction of a fourth plan by Gov. Jim Justice during a summit aimed at bringing together Democratic and Republican House and Senate leaders.
The government of W.Va. Justice announces the “Justice 4 All” plan to eliminate personal income tax
Gov. Jim Justice on Monday introduced a fourth plan to eliminate the state personal income tax.
According to the amended Senate bill, the income tax would be halved next year and would stay at all in four years. There is a 2% increase in sales and use tax. Other changes would include the elimination of hotel tax rates. Lawmakers say measures would be taken to ensure there is no budget deficit.
In an exchange on the floor Wednesday night, Sen. Mike Woelfel, D-Cabell, questioned amendment writer Eric Tarr, R-Putnam, about part of the amendment related to advertising taxation. .
He asked why the proposal would not tax digital advertisers such as Google and Facebook, but would tax local advertisers such as TV and radio stations and newspapers.
Tarr said no such amendment was tabled.
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