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West Virginia’s treasurer seeks a special session to exempt tips and overtime from state taxes, mirroring federal changes.
West Virginia Treasurer Larry Pack is urging Governor Patrick Morrisey to call a special legislative session to eliminate state income taxes on tips and overtime, mirroring a federal tax change.
The proposal, effective retroactively to January 1, would exempt up to $12,500 in tips and $12,500 in overtime from state taxation, with phaseouts for higher earners, potentially saving workers up to $75 million over three years.
Both major party leaders in the House Finance Committee support the move, citing bipartisan appeal and alignment with federal policy, though Senate leaders seek more details.
Despite a projected $400 million budget gap for fiscal year 2026, the state ended fiscal year 2025 with a $338 million surplus and over $161 million in unappropriated funds, creating a strong fiscal position to consider the change.
El tesorero de West Virginia busca una sesión especial para eximir las propinas y las horas extras de los impuestos estatales, reflejando los cambios federales.