Senate committee backs substitute to keep West Virginia�������������������'s 100% gambling-loss offset

The Senate Finance Committee on Jan. 21 adopted a committee substitute to Senate Bill 400, the annual personal income tax update, and voted to report the measure to the full Senate with a recommendation that it pass. Doctor Johnson explained the bill as an effort to update West Virginia Code to mirror federal tax law while noting a single divergence addressed by the substitute.

The committee substitute would preserve West Virginia's current treatment of gambling losses, allowing taxpayers to offset gambling losses against winnings at 100% rather than adopting the lower 90% offset the presenter said federal law provides. Doctor Johnson told the committee that the substitute "retained West Virginia's 100% offset rather than adopt the lower federal percentage." The committee agreed to the substitute by voice vote and then approved a motion to report the bill to the full Senate, also by voice vote.

Why it matters: The change preserves a state-specific tax treatment that benefits taxpayers who report gambling losses; adopting the federal-percentage would reduce the allowable offset. By reporting the committee substitute to the full Senate with a favorable recommendation, the committee advanced the updated code language for consideration by the full chamber.

Details: Committee members heard that SB 400 is the annual personal income tax update. The presenter noted that a separate corporate income tax bill (previously on the agenda as Senate Bill 393) had been removed from today's agenda and remains under negotiation. After the committee agreed to the substitute and voted to report the bill, no additional amendments were offered in committee.

Next steps: The committee reported the substitute to the full Senate with a recommendation that the bill "do pass." The full Senate will receive the reported substitute and may schedule floor consideration according to chamber rules.