West Virginia Senate Approves Income Tax Cut with Vape Tax Increase
The West Virginia Senate passed a 10% personal income tax cut bill on February 22, 2026, with part of the resulting revenue shortfall to be offset by increasing the excise tax on vapes and related products.
Key Highlights
- The Senate approved a 10% personal income tax cut that includes adjustments to the vape tax.
- The vape tax will shift from a flat 7.5 cents/ml to a tiered system.
- Closed-system vapes will be taxed at $1.20 per unit.
- The tax adjustment is expected to generate about $22 million annually.
- The full tax cut is projected to total roughly $250 million once implemented.
Senate Passes SB 392 Backing Governor’s Plan
According to The Weirton Daily Times on February 23, 2026. The Senate passed Bill 392 (SB 392) by a 28–4 vote, approving Governor Patrick Morrisey’s proposal for a 10% personal income tax reduction while incorporating higher vape taxes to help offset lost revenue.
Tax Cut Details and Implementation Timeline
Under the bill, individual income tax rates would be reduced by approximately 10% retroactively, effective January 1. Once fully implemented, the measure is expected to return about $250 million to taxpayers.
Shift to a Tiered Vape Tax System
To compensate for part of the fiscal impact, lawmakers revised the state’s e-cigarette excise tax structure. Currently, products are taxed uniformly at 7.5 cents per milliliter. The proposed system introduces tiers: closed-system devices (such as prefilled cartridges) would be taxed at $1.20 per unit. Open-system refillable products would be taxed at 25 cents per milliliter. Officials estimate the new framework will generate approximately $22 million in additional annual revenue.
Revenue Offset Strategy and Negotiation Room
Senate Finance Committee Chairman Jason Barrett stated that including the vape tax increase provides a partial revenue offset for the broader tax cut plan while leaving room for further fiscal proposals from the House of Representatives.
House Leaders Express Fiscal Concerns
The House Finance Committee’s budget proposal does not yet include the tax cut. Chairman Vernon Criss has previously warned that accelerating tax reductions without meeting economic growth benchmarks could strain the state’s financial stability.
Lawmakers Warn of Revenue Risks
Former Senate Finance Committee Chairman Eric Tarr voted against the bill, citing concerns about cutting approximately $250 million in revenue while spending pressures remain high. He cautioned that excessive tax reductions could force future tax increases or spending cuts.
Democratic Opposition Over Budget Priorities
Some Democratic legislators also opposed the measure, arguing that large-scale tax cuts are risky given ongoing increases in spending on education and child welfare programs.
Supporters Emphasize Balanced Approach
Backers of the bill contend that the revised vape tax serves as a supplemental revenue source, enabling tax relief while helping maintain fiscal balance.
Next Step: House Consideration
The bill has been forwarded to the West Virginia House of Representatives, where lawmakers will decide whether to advance or modify the proposal.
