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Committee Approves Job Training and Placement Act Allowing Retailers to Retain State Sales Tax for Workforce Services

West Virginia Senate Workforce Committee · January 27, 2026
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Summary

The committee agreed to a committee substitute for Senate Bill 396, creating the West Virginia Job Training and Placement Act. Qualifying nonprofit retailers certified by the Department of Revenue may retain 75% of state sales tax they collect after the first $1,000,000 during a three-year certification period, with performance benchmarks and revocation for noncompliance. The substitute was reported to the full Senate and referred to Finance first.

Senate Bill 396, as explained by committee counsel, would create the West Virginia Job Training and Placement Act and allow qualifying nonprofit retailers to retain state sales tax revenues to provide job training and placement services. Under the committee substitute, retailers certified by the Department of Revenue could retain 75% of state sales tax they collect after the first $1,000,000 during the retailer’s certification period. Certification would last three years and be eligible for renewal; municipal sales taxes would not be affected.

Counsel outlined performance rules: in the first year retained funds may be used to prepare to provide services; thereafter, for each $10,000 in revenue retained a retailer must provide services to at least three people and must successfully place an average of at least 2.25 people in jobs. The Department of Revenue may revoke certification and require remittance of tax revenues if an organization fails to meet requirements. The committee agreed to the committee substitute by voice vote. The vice chair moved that the substitute be reported to the full Senate with the recommendation that it do pass but first be referred to the Committee on Finance under the original double-committee reference; the motion carried and the substitute will be reported with that referral.