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HB 5617

To allow authorized retailers, qualified as workforce training community centes, to retain a portion of consumer sales and use taxes

2026 Regular Session Introduced by Bob Fehrenbacher

Certifying retailers can retain 75% of CSST after the first $1 million, using it to fund job training and placement services for individuals facing employment barriers.

To House Finance
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Bill Summary · HB 5617

Summary of HB 5617 (2026) – West Virginia Job Training and Placement Act

Purpose and intent

  • Establishes the West Virginia Job Training and Placement Act to encourage job training and placement services by certain retailers.
  • Allows certified “workforce training community centers” to retain a portion of the consumer sales and service tax (CSST) they collect, reinvesting the funds into job training and placement activities.
  • Aims to increase workforce participation and improve access to job training, particularly for individuals facing barriers to employment.

Key provisions and changes

Definitions and eligible organizations

  • Defines “workforce training community center” as a retailer that:
    • Is exempt from federal income tax under §501(a) and listed as a 501(c)(3) organization.
    • Collects and remits CSST on the sale of donated goods.
    • Has significant experience assisting people with disabilities or other employment barriers.
    • Is affiliated with a national or statewide organization.
    • Achieves annual sales of at least $1 million.
  • “Qualifying organization” is a retailer certified by the WV Department of Revenue under this act.
  • CSST is the tax subject to retention under the program.

Certification and retention mechanics

  • Retailers may apply to be certified as a qualifying organization.
  • If certified, the organization may retain 75% of CSST revenue collected after the first $1 million of CSST revenue earned during the certification period.
  • The organization must report retained amounts on its tax filings, in addition to other required information.
  • The certified organization must continue to remit CSST collected on sales as required for taxes directed to political subdivisions.

Use of retained revenue (subsection (e))

  • Retained CSST must be used to provide:
    • A variety of job training and placement services to individuals with disabilities or other barriers (e.g., low education, criminal history, homelessness, veteran status).
    • Individualized written training and employment plans for each assisted person.
    • Monitoring of job retention for the first 90 days of employment and additional supportive services as needed.

Initial use and performance requirements

  • In the first year of certification, the organization may use retained CSST to improve its training infrastructure and prepare to deliver the services described, with the understanding that this initial use is limited to building capacity and is not applicable in later renewal periods.

Service delivery expectations (post-initial period)

  • For every $10,000 of retained CSST, the organization must provide: 1) Job training and placement services to at least three people (including job-seeking skills, vocational training, placement, coaching, post-employment support). 2) An average placement rate of at least 2.25 people per retained $10,000.

Certification term, renewal, and oversight

  • Certification lasts three years, subject to renewal.
  • Renewal requires the retailer to show compliance with all act requirements and any rules issued by the department.
  • The department may revoke certification after a due process hearing if the retailer fails to comply.
  • If revocation occurs, the department can require remittance of retained CSST, up to a cap of $3,333 per person not successfully placed, at the department’s discretion.
  • The department may require periodic demonstrations (as prescribed by rules) that the organization has used funds for permitted purposes and met performance standards.

Rules and administration

  • The WV Department of Revenue is authorized to certify organizations, monitor compliance, administer reporting, and promulgate rules necessary to implement the act.
  • Legislative rulemaking is allowed under the state rules framework.

Who is affected

  • Eligible retailers that meet the defined criteria and seek certification as a qualifying organization.
  • Beneficiaries include individuals facing barriers to employment who receive training and placement services funded by retained CSST.
  • The Department of Revenue administers certification, reporting, renewal, and enforcement.

Timelines and procedural notes

  • Certification would occur upon department determination that an applicant meets criteria.
  • Initial year of retention allows capacity-building expenditures.
  • After the initial year, ongoing retention is tied to service delivery and placement performance.
  • Certification lasts three years and is subject to renewal with compliance checks.
  • Revocation procedures require notice and a hearing.

Fiscal and policy considerations

  • Introduces a targeted mechanism to reinvest a portion of CSST into workforce development.
  • Establishes measurable performance requirements to ensure funds translate into job placements.
  • Creates oversight, reporting, and potential clawback provisions to deter misallocation of funds.

If you’d like, I can condense this into a one-page briefing for policymakers or draft a comparison with existing WV tax credit or workforce programs.

Compiled from official sources — confirm details with the bill’s official record.

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