HB 4418
Creating “The Tax Efficiency Act of 2026”
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- Passed House of Delegates
- Passed Senate
- To Governor
- Became Law
Bill overview
The Tax Efficiency Act of 2026 aims to streamline the collection of municipal business and occupation taxes in West Virginia. It allows municipalities to administer these taxes through the state’s existing electronic data processing system. The bill also establishes maximum tax rates for municipalities, with specific provisions for health maintenance organizations and automobile sales. Furthermore, it includes exemptions for certain activities and introduces a phased reduction in municipal taxes on new automobiles registered in the state.
Key provisions
- Municipalities can now administer business and occupation taxes through the statewide electronic data processing system.
- Maximum municipal tax rates are capped at the state rate, with specific limitations for health maintenance organizations and certain income types.
- A 10/100ths of one percent tax rate is established for aircraft repair services.
- Tax exemptions are expanded to include certain religious and charitable organizations.
- Municipalities can offer tax credits to incentivize new businesses.
- A 50% reduction in municipal taxes is phased in for new automobiles registered in WV.
- Payments made through the electronic data processing system are encouraged.
- Third-party vendors collecting taxes for municipalities are limited to a 20% fee.
Who is affected
- Municipalities in West Virginia
- Businesses operating within West Virginia municipalities
- Health Maintenance Organizations (HMOs)
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