CHARLESTON — West Virginia appears to be on track to end the current fiscal year at the end of June with $80 million in surplus collections thanks to a boost on February tax revenue.

According to the West Virginia Budget Office, West Virginia ended February with $357.9 million in tax collections, which was 10.5% more than the $321.2 million estimate set by the state Department of Revenue.

Year-to-date tax collections for fiscal year 2025 ending in June come to $3.5 billion, or 1.8% more than the $3.4 billion revenue estimate, providing the state with a $61.6 million surplus. Revenue officials in the administration of former governor Jim Justice were projecting an $80 million surplus by the time fiscal year 2026 begins in July.

“As we continue to address West Virginia’s financial challenges, I’m pleased to see revenue exceed expectations for February,” said Eric Nelson, cabinet secretary for the Department of Revenue.

Personal income tax collections were strong in February, coming in at $101.1 million for the month, or 25.7% above estimates for a $20.7 million surplus. Fiscal year-to-date personal income tax collections of $1.399 billion were .29% above the $1.395 billion estimate for a $4 million surplus eight months into the fiscal year.

February corporate net income tax collections of $5.2 million was 86% more than the $2.8 million revenue estimate for a $2.4 million surplus. Fiscal year-to-date corporate net income tax collections of $210.6 million were 23% above the $171 million estimate, resulting in a $39.6 million surplus.

Severance tax collections for coal, oil, and natural gas saw one of its largest collections in February due in part to the cold snap earlier this winter. February severance tax collections of $45.7 million were 59% above the $28.7 million revenue estimate, providing the state a nearly $17 million surplus for the month. But fiscal year-to-date severance tax collections remain under water by 18.2%, collecting $193.2 million, below the $236.2 million estimate.

February consumer sales and use tax collections were also down for the month while remaining close to fiscal year-to-date estimates. February sales tax collections were $143.1 million, 1.5% below the $145.3 million revenue estimate. But fiscal year-to-date sales tax collections were $1.195 billion, or .45% above the $1.190 billion estimate, leaving the state with a $5.3 million surplus.

Gov. Patrick Morrisey presented lawmakers his balanced budget bill during his first State of the State address on the first day of the legislative session on Feb.12.

That budget is based on a revenue estimate of $5.323 billion for fiscal year 2026 beginning in July, representing a 1.1% increase from the general revenue estimate for the current fiscal year of $5.264 billion, or an increase of $58.6 million. Both the House of Delegates and state Senate finance committees are holding budget hearings with state agencies as lawmakers prepare their version of the budget bill.

When Morrisey first took office on Jan. 13, his revenue officials estimated that there would be a $400 million hole in the fiscal year 2026 budget. Officials blamed the influx of federal funding due to COVID-19 and other monies combined with the overreliance on one-time monies in previous budgets.

“We will continue to work with the Governor’s Office and the Legislature to pass a balanced and forward-thinking 2026 budget that addresses these challenges,” Nelson said.