WV SB518

Exempts non-grantor trusts with West Virginia situs from state personal income tax, effective for taxable years beginning on or after January 1, 2026

Qualifying trusts must be created under West Virginia law or have situs in the state and be administered by a West Virginia resident individual trustee, a state or federally chartered banking institution, or a private trust company with a principal place of business and regular physical presence in West Virginia

Amends multiple sections of the personal income tax code to exclude these non-grantor trusts from tax calculations, filing requirements, and withholding obligations

Modifies the Uniform Trust Code to recognize trust situs as a valid means of establishing connection to West Virginia for purposes of designating the principal place of administration

Removes the 0% tax rate previously established only for non-grantor trusts administered by licensed private trust companies and expands the exemption to a broader category of qualifying trusts