West Virginias Senate passed Gov. Patrick Morrisey’s bill cutting personal income tax rates by 10% to a 28/4 vote with two absent or not voting Friday, Bill 392 now heads to the House of Delegates. SB 392 would cut personal income tax rates by approximately 10% retroactive to Jan. 1, returning $250 million to taxpayers when fully implemented. Morrisey first proposed an across the board 10% personal income tax cut during his State of the State address at the start of the 2026 legislative session. Part of the 10% personal income tax cut in the committee substitute for SB 392 would be paid for with increased taxes on vape and e-cigarette products, raising an additional $22 million in tax revenue. The bill modifies the current excise tax of 7.5 cents per milliliter to a tiered system based on the type of vaping device. Closed-system vapes, such as cartridge or pods, would be taxed at $1.20 per cartridge. Open system, or refillable vapes, would be taxed at 25 cents per milliliter.
Senate Bill 250, with Morrisey’s proposal for the general revenue budget for fiscal year 2027 beginning on July 1, pays for 5% of the proposed 10% personal income tax cut in part through departments and agencies cutting their budget requests by 2%, freeing up around $120 million. The Senate Finance Committee version of SB 250 passed earlier Friday set the general revenue estimate for FY27 at $5.381 billion, a 2% decrease from the $5.493 billion budget presented to lawmakers by Morrisey.