Mountain State Spotlight, Times West Virginian – When West Virginia lawmakers passed a wide-ranging tax cut in 2023, much of the attention focused on the immediate 21.25% income tax reduction. But in recent months, the main topic has turned to a “trigger” added to the law as a way to cut taxes even more in the future if the state hits certain revenue goals.
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That trigger, which could eventually eliminate West Virginia’s income tax entirely, has already added new wrinkles to the state’s budgeting process, fueling calls by some lawmakers to tighten the purse strings. That’s despite the state already maintaining relatively flat budgets that have not accounted for inflation or increased agency needs in the past few years.
A review of the trigger and what it means for the state’s budget could be a topic of a May special session, which the governor is expected to call on Sunday. In the meantime, it is still unclear if the state will hit the first trigger in August. If it does, the state will either need to collect more revenue next year to maintain a balanced budget or potentially cut expenses, a challenge that could arrive as other parts of the 2023 tax cuts continue to go into effect.
