West Virginia Senate Backs Vape Tax Increase to Offset Income Tax Cut
The West Virginia Senate approved a bill cutting income taxes by 10% and raising taxes on vape products to offset the revenue loss.Summary
The West Virginia Senate passed Senate Bill 392 with a 28-4 vote, approving a 10% personal income tax cut intended to return $250 million to taxpayers. To partially offset this revenue loss, the bill incorporates increased excise taxes on vape and e-cigarette products. The current 7.5 cents per milliliter vape tax will be replaced with a tiered system: closed-system cartridges will be taxed at $1.20 per unit, and open systems at 25 cents per milliliter. Lawmakers estimate this revision will generate approximately $22 million annually. Senate Finance Committee Chairman Jason Barrett stated the vape tax increase aims to provide a revenue offset and encourage negotiations with the House regarding full funding of the income tax cut. The bill now moves to the House of Delegates, where the budget version currently does not include the proposed income tax reduction, raising concerns about fiscal sustainability among some lawmakers.
(Source：2Firsts)
