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CHARLESTON -- West Virginia is heading into the first half of the fiscal year with major tax revenue collection streams in the black for the month of November.
According to the monthly report on collections for the state general revenue fund released Friday by the Senate Finance Committee, November tax revenues of $404.8 million were 21.1% more than the $360.7 million estimate from the state Department of Revenue, for a $44 million surplus for the month.
Year-to-date tax collections for fiscal year 2024 beginning in July were $2.2 billion, which was 14.9% more than the $1.9 billion revenue estimate. With the first five months of the fiscal year complete, the state has a $286.2 million surplus.
"Even as inflation continues to throw us a curveball, our state's fiscal strength is shining through," Gov. Jim Justice said in a statement Friday afternoon. "Surpassing cumulative revenue estimates by $286.2 million just 5 months into the fiscal year showcases the strength of our diversified economy."
November personal income tax collections of $140.7 million were 7.1% more than the $131.4 million revenue estimate, providing the state a $9.3 million surplus for the month. Year-to-date personal income tax collections of $938.5 million were 16.2% more than the $807 million estimate. The $130.5 million fiscal year-to-date surplus represents more than 45% of the total year-to-date tax revenue surplus.
Consumer sales and use tax revenue for November was $162 million, which was 3.5% more than the $156.6 million revenue estimate, providing a $5.4 million surplus for the month. Year-to-date sales tax revenues of $701.7 million were 2.5% more than the $684.4 million revenue estimate, for a $17.3 million surplus.
Coal, oil and natural gas severance tax revenues took a major hit in October but managed to come in above expectations in November. Severance tax collections for the month were $41.3 million, or 27.5% above estimates, for a $8.9 million surplus.
However, year-to-date severance tax collections were 36.9% below estimates, coming in at $76.3 million instead of the $120.9 million estimate.
Corporate net income tax revenue for November was $9.5 million, or 216.7% above the $3 million revenue estimate, for a $6.5 million surplus. Year-to-date corporate net income tax revenue was $161.8 million, providing the state a $92.7 million surplus.
The state has ended the last several fiscal years with large surpluses, with fiscal year 2023 ending in June with a record-breaking $1.8 billion surplus. The use of flat budgeting based on artificially low tax revenue estimates, natural growth in tax revenue, a couple of years of high coal and natural gas prices and the influx of federal COVID-19 and infrastructure dollars have led to these surpluses.
Justice and the state Legislature used the opportunities provided by these tax revenue surpluses to cut personal income tax rates and engage in other tax reform efforts earlier this year.
"Those that said cutting our personal income tax was a bad idea are being proven wrong month after month, as West Virginians are able to keep more of their hard-earned paychecks in the face of rampant inflation," Justice said. "I'm proud that we're continuing to steer West Virginia toward a brighter future."
Justice, approaching his final year in office as he campaigns for the Republican nomination for U.S. Senate, will be presenting his last budget and revenue estimate for fiscal year 2025 when the legislature convenes in January 2024.