Key Points
- The Senate approved a 10% personal income tax cut bill on a 28–4 vote.
- The legislation replaces the current 7.5 cents per milliliter vape tax with a tiered excise system.
- Closed-system vape cartridges would be taxed at $1.20 per unit, and open systems at 25 cents per milliliter.
- Lawmakers estimate the vape tax revision would raise approximately $22 million annually.
- The income tax cut is projected to return $250 million to taxpayers when fully implemented.
2Firsts, February 23, 2026
According toThe Weirton daily times, The West Virginia Senate passed Senate Bill 392 on Friday, approving a 10% reduction in personal income tax rates while incorporating higher excise taxes on vape and e-cigarette products as a partial revenue offset.
The bill passed in a 28–4 vote and now heads to the House of Delegates. The measure would reduce personal income tax rates by approximately 10%, retroactive to January 1, and is projected to return $250 million to taxpayers when fully implemented.
As part of the Senate Finance Committee substitute, lawmakers revised the state’s existing vape excise tax. The current rate of 7.5 cents per milliliter would be replaced with a tiered structure based on product type. Closed-system vaping products, including cartridge and pod-based devices, would be taxed at $1.20 per cartridge. Open-system, refillable products would be taxed at 25 cents per milliliter. The revised structure is expected to generate an additional $22 million in revenue.
Senate Finance Committee Chairman Jason Barrett said the inclusion of the vape tax increase was intended to provide a revenue offset while encouraging further negotiations with the House regarding the full funding of the income tax cut.
The House Finance Committee’s version of the budget does not currently include the proposed income tax reduction. Several lawmakers raised concerns about fiscal sustainability, arguing that accelerating tax cuts beyond the state’s existing trigger mechanism could create budget pressures in future years.
Opponents also cited funding needs in areas such as education and child welfare. Supporters, however, said the measure balances tax relief with responsible revenue adjustments and does not alter existing restrictions on adult nicotine sales.
(Cover Image:State Sen. Eric Tarr, the former chairman of the Senate Finance Committee| Image source:WV Legislative Photography)
