West VirginiaHB 44182026 Regular SessionHouseWALLET

Creating “The Tax Efficiency Act of 2026”

Sponsored By: David McCormick (Republican)

Signed by Governor

§8-13-5

Your PRIA Score

Score Hidden

Personalized for You

How does this bill affect your finances?

Sign up for a PRIA Policy Scan to see your personalized alignment score for this bill and every other piece of legislation we track. We analyze your financial profile against policy provisions to show you exactly what matters to your wallet.

Free to start

Bill Overview

Analyzed Economic Effects

8 provisions identified: 4 benefits, 1 costs, 3 mixed.

Cities can give business tax credits

When a city has a business tax, it may grant credits to new or expanding businesses inside its limits. The city decides who qualifies and how much the credit is.

City tax on new cars ends

The law cuts, then ends, city business tax on sales of new cars never registered in an individual’s name. Starting July 1, 2023, the tax is cut by 50%. Starting July 1, 2024, it is cut by another 50% of the total tax. Beginning July 1, 2025, the city tax on these sales is eliminated. Automobiles include gas or electric cars, light‑duty trucks, and SUVs. Motorcycles are excluded.

Fairer rules for city business taxes

If your business works in more than one West Virginia city, state rules divide income and stop the same income from being taxed twice. New or higher city taxes on contracting work apply only to contracts signed after the tax takes effect. A payment is on time if it is postmarked or submitted through the system by the due date. A city must give public utilities written notice by certified mail at least 60 days before a new or higher utility tax starts. Private collectors cannot charge more than 20% of the taxes they collect. City ordinances must follow state‑style rules for assessments, collections, and penalty waivers.

City business tax allowed but capped

The law lets cities tax business activity that the state taxed before July 1, 1987. Cities cannot tax activities the state exempted before that date. City rates cannot be higher than state caps, including 1.0% for some classes and 0.3% for others. These limits keep local B&O taxes within statewide ceilings.

City tax caps for HMOs

For HMOs with a state certificate, city B&O tax is capped at 0.5% on Medicaid and similar program income used for administrative expenses (not claims or provider payments). It is also capped at 0.5% on enrollee or employer income from nonfederal sources. Income from use of real property is not covered by these caps. The cap applies to periods after December 31, 1996, and 1997 payments are not refundable.

City tax on nonprofit business income

Since July 1, 2007, cities may tax income from a charity’s or religious group’s business activities, but only if the IRS taxes that income as unrelated business income. Other charitable income remains outside this city tax.

Very low city tax on aircraft repair

Cities may tax aircraft repair, maintenance, modification, and refurbishing done inside city limits. The rate on this activity is capped at 0.10%. This makes the activity taxable but keeps the city tax very small.

Optional statewide system for city business taxes

The Tax Commissioner runs an optional online system to file and pay city business taxes. Cities choose whether to join and keep audit and collection powers. The system starts only after committed cities together expect over $30 million a year; it then opens on a July 1 at least 12 months after that finding. The state keeps a 1% administrative fee from each participating city’s gross collections. The Commissioner may set rules for onboarding and secure data exchange.

Free Policy Watch

You just read the policy. Now see what it costs you.

Pick a topic. PRIA runs your household against live legislation and sends you a free personalized readout.

Pick a topic to get started

My Taxes My Health My Budget My Money My Freedom

Or tell us something more specific

Sponsors & Cosponsors

Sponsor

David McCormick
Republican • House

Cosponsors

Ryan Browning
Republican • House
Vernon Criss
Republican • House
Bob Fehrenbacher
Republican • House
Joe Funkhouser
Republican • House
Jonathan Kyle
Republican • House
Jordan Maynor
Republican • House
Clay Riley
Republican • House

Roll Call Votes

All Roll Calls

Yes: 127 • No: 1

Senate vote • 3/13/2026

Passed Senate (Roll No. 535)

Yes: 34 • No: 0

House vote • 3/4/2026

Passed House (Roll No. 286)

Yes: 93 • No: 1

Actions Timeline

Approved by Governor 3/25/2026
3/25/2026House
To Governor 3/18/2026
3/18/2026House
To Governor 3/18/2026 - Senate Journal
3/14/2026Senate
Approved by Governor 3/25/2026 - Senate Journal
3/14/2026Senate
Approved by Governor 3/25/2026 - House Journal
3/14/2026House
On 3rd reading
3/13/2026Senate
Read 3rd time
3/13/2026Senate
Passed Senate (Roll No. 535)
3/13/2026Senate
Communicated to House
3/13/2026Senate
Completed legislative action
3/13/2026Senate
On 2nd reading
3/12/2026Senate
Read 2nd time
3/12/2026Senate
Reported do pass
3/11/2026Senate
Immediate consideration
3/11/2026Senate
Read 1st time
3/11/2026Senate
Reported do pass, but first to Finance
3/9/2026Senate
To Finance
3/9/2026Senate
Introduced in Senate
3/5/2026Senate
To Government Organization then Finance
3/5/2026Senate
To Government Organization
3/5/2026Senate
On 3rd reading, Special Calendar
3/4/2026House
Read 3rd time
3/4/2026House
Passed House (Roll No. 286)
3/4/2026House
Communicated to Senate
3/4/2026House
On 2nd reading, Special Calendar
3/3/2026House

Bill Text

Committee Substitute
HTML PDF
Engrossed
HTML PDF
Enrolled
HTML PDF
Introduced Version
HTML PDF

Related Bills

Back to State Legislation

Take It Personal

Get Your Personalized Policy View

Take the PRIA Score to see how policy affects your household, then upgrade to PRIA Full Coverage for year-round monitoring.

Already have an account? Sign in