September General Revenue collections above estimate

Updated 1 year ago Edited from a Press Release

CHARLESTON, W.VA. – Better-than-expected Severance Tax and Corporate Net Income Tax revenues put West Virginia’s General Revenue collections of $389.2 million for the month of September at nearly $11.5 million above estimate and 3.5 percent above last year’s receipts.


That’s positive news for West Virginia, said Dave Hardy, cabinet secretary of the West Virginia Department of Revenue; however, the state still lags in cumulative collections at $948.7 million, which are $7.8 million below estimate. Compared to where revenues were at this point last year, collections are running ahead $33.9 million.


“It appears that we are gaining some ground in some critical areas,” Hardy said. “This was an important month in terms of revenues and it didn’t disappoint. We are cautiously optimistic as we watch collections continue to improve.”


Strong corporate estimated tax payments resulted in a 35 percent monthly gain in collections compared with prior year results and an $11.8 million surplus for September. After falling below estimate during the first two months of the year, Severance Tax collections exceeded the September estimate by
$4.0 million.


“Following a period of slower growth during late summer and early autumn, we expect to see Severance Tax collections continuing to rebound because of an expectation of improving natural gas prices later this fiscal year,” Hardy said.


Other collections of interest in September include:


n Personal Income Tax: Collections fell short of estimate by $1.2 million due to a near 47 percent rise in tax refund payments for the month. Cumulative collections of more than $432.9 million were nearly $2.0 million below estimate and just 1.8 percent above prior year receipts.


n Consumer Sales and Use Tax: Receipts fell $2.6 million below estimate in September. After adjustments for municipal sales tax collections and special revenue transfers, state sales tax revenue increased by just 0.9 percent for the month. The cumulative deficit in General Revenue Fund sales tax collections grew to $7.9 million. Due to an increase in transfers to special revenue funds, cumulative General Revenue Fund sales tax collections were up by just 1.0 percent as compared with an overall increase in State sales tax collections of 2.0 percent.


n Severance Tax: Collections totaled more than $31.2 million for the month, an amount that was $4 million above estimate and 19.1 percent higher than prior year receipts. Cumulative General Revenue Fund Severance tax collections of $56.3 million were $11.7 million below estimate, but more than 47 percent above prior year-to-date receipts.


n Tobacco Product Excise Tax: Collections totaled $14.2 million in September. Monthly collections were $0.9 million below estimate and 26.4 percent below prior year receipts. Cumulative collections of more than $47 million were $3.7 million above estimate and 17.9 percent below prior year receipts.


n State Road Fund: Collections of $47 million were $19.1 million below estimate and 23.4 percent below prior year receipts in September due to revenue timing variances. Cumulative collections were $14.6 million below estimate and just 1.6 percent above prior year receipts. 

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