West Virginia Governor Says $826 Million Surplus Will Trigger Tax Cuts

West Virginia Gov. Jim Justice (C) announces a state revenue surplus and tax cuts during his final fiscal year-end address on July 1, 2024. (Office of the Governor)

West Virginia Gov. Jim Justice said the state ended its fiscal year with a revenue surplus that is expected to trigger cuts to the state’s personal income tax requirement.

Mr. Justice announced on July 1 during his fiscal year end report that the state collected an extra $826 million, which will reduce income tax rate by approximately 3 to 4 percent.

“When I first took office, I promised you all a rocket ship ride, and look at us now. We’ve cut over a billion dollars in taxes, and it’s truly unbelievable,” Mr. Justice said in a statement.

“This is exactly what a responsible government should do for its people, especially in a state like ours,” he said. “When the state does well, the people do well. That’s why we established these triggers.”

In May, the two-term governor won the state’s GOP primary for the U.S. Senate, in his bid to win the seat being vacated by retiring Democrat Sen. Joe Manchin. Mr. Justice will face Democrat opponent Glenn Elliott, the mayor of Wheeling, in November.

The seat is considered a key flip for Republicans, who hope to retake control of the Senate in 2025.

Mike Pushkin, chair of the West Virginia Democratic Party, said in a statement that the governor’s tax cut is an attempt to win votes in November, calling it an “attempted bribe.”

Last year, the governor signed into law House Bill 2526, which triggers a required reduction in personal income taxes when state revenue growth exceeds consumer inflation.

The income tax reduction will take effect on Jan. 1, 2025.

The governor told reporters that he is proud of the tax cuts the state has accomplished since he took office in 2017, but he added that there is still more work to be done.

“As West Virginia thrives, our people thrive and deserve that prosperity,” Gov. Justice said. “We need to continue marching toward eliminating the personal income tax. Doing so will only bring more and more people to this incredible place and promote even more goodness.”

Larry Pack, secretary of the West Virginia Department of Revenue, who was also at the news conference, touted the end of the state’s 1-cent “pop” tax.

“We’re cutting taxes left and right,” Mr. Pack said. “Yesterday was the last day for the pop tax. We no longer have to pay for that, so it’s just a phenomenal time.”

Lawmakers passed legislation in 2022 repealing the decades-long, one-penny excise tax on sugary drinks, which took effect July 1.

“They say there’s nothing harder to cut than a government program,” Mr. Pack said. “I think there is one thing harder, and that’s to cut a tax.”

Mr. Justice and the state Legislature has delivered over $1 billion in tax cuts, according to a press release.

However, the two-term governor has asked state lawmakers to consider further tax cuts.

Mr. Justice said he is bringing the Legislature back for a special session in August to address his proposed childcare tax credit and challenged them to find ways to eliminate the personal income tax entirely.