HB 4418 — Creating “The Tax Efficiency Act of 2026”

WEST VIRGINIA LEGISLATURE REGULAR SESSION ENGROSSEDENROLLED Committee Substitute for House Bill 4418 ByBY DelegatesDELEGATES McCormick,MCC Riley,ORMIC, Maynor,RILE, Kyle,MAYNOR, Browning,YLE, Criss,BROWNING Fehrenbacher,, andRISS, FunkhouserEHRENBACHER,AND [OriginatingFUNKHOUSER in[Passed theMarch Committee13, on2026; Finance;

Februaryin 26,effect 2026]90 Engdays from passage(June 11, 2026)] Enr CS for HB 4418 AAN BILLACT to amend and reenact §8-13-5 of the Code of West Virginia, 1931, as amended, relating to creating the "The Tax Efficiency Act of 2026" authorizing the design and implementation of an electronic data processing system by the Tax Commissioner to facilitate the filing and collection of municipal business and occupation or privilege taxes.

of this code, on January 1, 1959, or in excess of one percent of gross income under §11-13-2k of this code, or in excess of three-tenths ofEnr one Eng CS for HB 4418 of one percent of gross value or gross proceeds of sale under §11-13-2m of this code.

EngEnr CS for HB 4418 Provided, That any new imposition of tax or any increase in the rate of tax upon any business, occupation or privilege taxed under §11-13-2e of this code, applies only to gross income derived from contracts entered into after the effective date of the imposition of tax or rate increase, and which effective date shall not be retroactive in any respect:

For the purposes of this EngEnr CS for HB 4418 section, an automobile is a self-propelled vehicle used on the roads and highways by the use of motor vehicle fuel or propelled by one or more electric motors using energy stored in batteries or a combination thereof.

of this code, as in existence on JuneEnr Eng CS for HB 4418 June 30, 1978, or to those procedures in §11-10-1 et seq.

— (1) System Design and Authority. —Authority. The Tax Commissioner shall design and implement an electronic data processing system to facilitate the filing and collection of municipal business and occupation or privilege taxes.

— The Tax Commissioner shall design and implement an electronic data processing system to facilitate the filing and collection of municipal business and occupation or privilege taxes.

(2) Administrative Fee and Funding. —Funding. To cover the costs of system development, maintenance, and ongoing administration, the Tax Commissioner shall retain an administrative fee of one percent (1%) of the gross collections for each participating municipality.

— To cover the costs of system development, maintenance, and ongoing administration, the Tax Commissioner shall retain an administrative fee of one percent (1%) of the gross collections for each participating municipality.

EngEnr CS for HB 4418 (3) System Activation Threshold. —Threshold. The Tax Commissioner’s obligation to implement the system is contingent upon a sufficient number of municipalities committing to participation through local ordinance.

— The determinationTax ofCommissioner’s whetherobligation theto revenueimplement threshold has been met shall be based on the totalsystem anticipatedis businesscontingent andupon occupationa taxsufficient revenuenumber reflectedof on the most recent fiscal year budgets filed by the participating municipalities withcommitting theto Stateparticipation Auditorthrough pursuantlocal to articlesordinance. §11-8-1 et seq. and §6-9-1 et seq.

The determination of whether the revenue threshold has been met shall be based on the total anticipated business and occupation tax revenue reflected on the most recent fiscal year budgets filed by the participating municipalities with the State Auditor pursuant to articles §11-8-1 et seq.

and §6-9-1 et seq.

(4) Effective Date. —Date. Once the Tax Commissioner determines that the committed municipalities represent an aggregate annual revenue exceeding $30,000,000, as verified by the budgets filed with the State Auditor, the system shall be implemented and become available for use on the July 1 following a period of at least 12 months from the date of such determination.

(5)— Definitions. —Once Asthe usedTax inCommissioner thisdetermines subsection:that the committed municipalities represent an aggregate annual revenue exceeding $30,000,000, as verified by the budgets filed with the State Auditor, the system shall be implemented and become available for use on the July 1 following a period of at least 12 months from the date of such determination.

(5) Definitions.

— As used in this subsection:

(6) Rulemaking. —Rulemaking. The Tax Commissioner may propose legislative rules for promulgation in accordance with §29A-3-1 et seq.

— The Tax Commissioner may propose legislative rules for promulgation in accordance with §29A-3-1 et seq.

Enr CS for HB 4418 The Clerk of the House of Delegates and the Clerk of the Senate hereby certify that the foregoing bill is correctly enrolled.

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Clerk of the House of Delegates ...............................................................

Clerk of the Senate Originated in the House of Delegates.

In effect 90 days from passage.

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Speaker of the House of Delegates ...............................................................

President of the Senate __________ The within is ................................................

this the...........................................

Day of ..........................................................................................................., 2026.

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Governor 7