August revenues put state $19 million behind estimates, but $20.7 million ahead of last year’s collections

Updated 1 week ago Edited from a Press Release

CHARLESTON, W.VA. – Two months into Fiscal Year 2018, General Revenue collections put the state $19.3 million behind estimates, but $20.7 million ahead of last year, according to Dave Hardy, cabinet secretary of the West Virginia Department of Revenue.

 

August General Revenue Fund collections of $306.7 million were $16.4 million below estimate and 2.2 percent below prior year receipts.  Cumulative collections of nearly $559.5 million were $19.3 million below estimate, but 3.9 percent ($20.7 million) above last year’s receipts.  

 

The monthly shortfall is attributable to three sources – Personal Income Tax, Severance Tax and the Insurance Premium Tax. Hardy said there were timing issues for tax receipts in August and higher-than-typical collections in July that had a significant impact on revenues.

 

Severance Tax collections also fell below estimate last month because of a recent trend of declining natural gas prices.

 

“It’s important to keep in mind that September’s numbers will tell us a lot,” Hardy explained. “It’s the first key month of collections for purposes of judging the overall outlook for the State General Revenue Fund for the year because quarterly estimated income tax payments will be due this month.”

 

Highlights of major revenue collections include:

 

  • Personal Income Tax collections fell short of estimate by $10.5 million. Cumulative collections of more than $255.3 million were nearly $0.8 million below estimate and just 1.6 percent above prior year receipts.

 

  • Consumer Sales and Use Tax receipts fell $0.4 million below estimate. After adjustments and transfers, revenue increased by 3 percent for the month. Cumulative collections were up by just 1.5 percent as compared with an overall increase in State sales tax collections of 3 percent.

 

  • General Revenue Fund Severance Tax collections totaled more than $28.6 million, an amount that was nearly $7.9 million below estimate. Total severance tax collections for the month increased by 8 percent over last year. Cumulative collections of $25.2 million were $15.7 million below estimate, but more than double prior year-to-date receipts.

 

  • Insurance Premium Tax collections totaled $0.8 million and cumulative collections totaled $27.6 million. August collections were $2.9 million below estimate and nearly 87 percent below last year. Cumulative collections were less than $1.1 million below estimate and 2.4 percent below prior year receipts.

 

  • Tobacco Product Excise Tax collections totaled $15.7 million. Monthly collections were $0.1 million above estimate and 35.5 percent below prior year receipts. Cumulative collections of nearly $32.8 million were $4.5 million above estimate and 13.6 percent below prior year receipts.

 

  • B&O Tax collections of nearly $9.6 million were slightly below estimate and 30.7 percent below prior year receipts. Cumulative collections of $18.5 million were $0.6 million below estimate and 4.4 percent below prior year receipts.

 

  • State Road Fund collections of $69.2 million were $1 million above estimate and 2 percent above prior year receipts in August mainly due to recent growth in registration and license fee income following the implementation of higher fees as of July 1of this year. Cumulative collections were nearly $4.5 million above estimate and 13.7 percent above prior year receipts. Due to recent fee and tax increases, License and Registration Fee income was up more than 62 percent from last year and Motor Fuel Excise Tax revenues were up more than 11 percent.  

 

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