According to the Senate Finance Committee, December tax collections for the general revenue fund came in at $552.5 million, 35.8% more than the $407 million estimate from the state Department of Revenue, resulting in $145.6 million in surplus tax revenue for the month. December tax revenues also exceeded tax collections for the previous fiscal year by 9%.

Year-to-date tax collections for the first six months of fiscal year 2023 – between July and December – were $3.1 billion, which was 37.5% more than the $2.2 billion revenue estimate, giving the state more than $833 million in surplus tax revenue with six months to go in the current fiscal year.

The state ended fiscal year 2022 in June with more than $1.3 billion in tax revenue surplus after collecting $5.9 billion in tax collections, breaking all previous records. Some lawmakers and experts believe the state could easily exceed $1.3 billion in surplus revenue and approach $1.7 billion when fiscal year 2023 ends in July of this year.

Personal income tax collections led the way for December, bringing in $195.3 million in tax revenue. December collections were 11.7% more than the $174.8 million revenue estimate, giving the state a $20.5 million tax revenue surplus for the month. Year-to-date personal income tax collections of $1.18 billion exceeded the $1.05 billion by 12.4% for a $130.2 million surplus.

But roughly half of the tax revenue surplus for the last six months is due to the state’s coal and natural gas severance tax. The state collected $540.8 million in severance tax collections between July and December – 403% more than the $107.4 million revenue estimate. The year-to-date severance tax surplus was $433.4 million. December severance tax collections of $87.3 million exceeded the $24 million revenue estimate by 264% for a $63.3 million surplus.

The consumer sales and use tax brought in $161.1 million for December, which was 13% more than the $142.5 million revenue estimate for a $18.6 million surplus. Year-to-date collections of $832.7 million was 14.3% more than the $728.2 million revenue estimate for a $104.4 million surplus.

December corporate net income tax collections of $59.3 million was 91% more than the $31 million revenue estimate for a $28.3 million surplus. Year-to-date collections of $193.2 million was 130% more than the $84 million revenue estimate for a $109.2 million surplus.

Gov. Jim Justice is expected to introduce a flat budget when the 2023 legislative session begins on Wednesday, Jan. 11. Lawmakers passed a $4.645 billion general revenue budget in March 2022 for the current fiscal year. Justice and lawmakers have been using flat budgets and tax revenue surpluses to justify possible tax cuts, including cuts to the state personal income tax.