Governor Jim Justice, on Thursday, announced that his office has submitted a bill to the state legislature which seeks to reform West Virginia’s corporate income tax laws. The proposed bill is part of the governor’s plan to make West Virginia a “haven” for remote workers from all across the United States.
“This legislation is a long overdue fundamental change and modernization to our corporate tax structure, which is absolutely necessary as we continue to move West Virginia forward,’ Justice said. “I am so proud to offer this legislation for consideration because its a bold step toward making West Virginia the most attractive state in the nation for remote workers and for all businesses, which is exactly what we want to be.
I am confident that the leadership of both the Senate and the House of Delegates understand its importance and I sincerely hope that all members of the legislature will agree and pass this bill.”
According to a statement released by the governor’s office, “If passed, the bill will modernize West Virginia’s corporate income tax structure, incentivizing not only remote workers but also businesses looking to plant their operations in West Virginia, by making the following changes:
Adopts model tax provisions regarding the treatment of remote or mobile employees to remove barriers to businesses that have a remote workforce in West Virginia.
Ends the “throw out” rule in West Virginia, which artificially increases the state income tax burden for certain businesses.
Moves this state from ‘origin sourcing’ to ‘market sourcing’ – putting us in line with, and making us competitive with, the majority of jurisdictions in the US.
Adopts ‘single sale factor’ apportionment, meaning that businesses will no longer be penalized on their West Virginia income taxes for having property or payroll within the state.
The West Virginia Department of Revenue projects that this legislation will be revenue neutral, even considering all the benefits it will provide.”
When asked his thoughts on the governor’s proposal, West Virginia Senate Minority Leader Stephen Baldwin told the West Virginia Daily News, “I think that this one (the governor’s bill proposal) has some promise. We’re excited to have the chance to sit down and look it over.”
The governor’s office believes that the bill will be introduced on the House floor in the coming days.
The West Virginia Daily News will provide updates on the status of Governor Justice’s tax-reform proposal as additional details are made available.