CHARLESTON, W.Va. — The state had a bad revenue collection month in October.
The taxes collected fell $15 million below estimates.
Collections had been nearly even with estimates through the first three months of the fiscal. After the first four months of the fiscal year, collections now trail estimates by $13.8 million.
Personal Income Tax collections for the month came in below estimates by $16.8 million. Personal Income Tax collections have missed the mark by $33.4 million so far this budget year.
The collection numbers come out a day after Gov. Jim Justice held an outdoor ceremony for ceremonially sign a bill into law lowering the PIT by another 2%.
“Another 2 percent for the goodness of Toby and Edith through every single day, and we should always remember they’re why we’re here,” Justice said.
This tax cut is on top of a 21.25% income tax cut that just went into effect, plus another 4% tax cut that will occur automatically because the state hit an economic trigger.
“Absolutely, West Virginia needs to stay on the path of getting rid of your personal income tax. If you do that, there’ll be opportunity. There’ll be jobs. There’ll be so much goodness it’s off the chart. In order to do that, we’ve got to stay on the path,” Justice said Thursday.
The state’s Severance Tax also performed poorly in October, missing estimates by $15.5 million. The projected revenue is down by $19 million for the fiscal year.
The Justice administration has benefited by some of the largest revenue surpluses in the state’s history in recent years including recording amounts of federal money tied to the covid pandemic. Justice leaves office at the end of the year and it appears the new governor could face some financial challenges.
House Finance Committee Vernon Criss, R-Wood, said Thursday during an appearance on MetroNews “Talkline” that he believes the state could still achieve record revenue surpluses. He said they would likely be connected to the severance tax that comes largely from the production of coal and natural gas.
Story by Jeff Jenkins, MetroNews