CHARLESTON, W. Va.–The state had its best month for revenue collections so far this fiscal year in September.
Draft numbers released by the state Senate Finance Committee showed overall tax collections for the month exceeded estimates by $204.2 million, which grew the surplus revenue collection amount to roughly $234 million after the first three months of the new budget year.
State Revenue Secretary Dave Hardy said after modest revenue collection surpluses in July and August there was significant growth last month.
Personal Income Tax collections exceeded estimates by $112 million for the month which Hardy said is significant when you consider the legislature and the agreement of Gov. Jim Justice cut personal income taxes by 21 percent earlier this year.
“We are now even, absolutely even, with income tax collections compared to where we were a year ago,” Hardy said. “That means we have grown personal income tax collection by about 20 percent.”
Hardy said residents and businesses have responded positively to income tax reductions.
“That’s the story for September,” Hardy said. “That the state income taxes and our incomes are growing to show that kind of revenue growth in such a quick way.”
Severance Tax collections beat estimates for the month by $4.4 million, which is still $13 million below estimates for the fiscal year. Collections of the Consumer Sales Tax were more than $11.2 million above estimates for September, which is 9.6% more than last September and Corporate Net Income Tax collections were about $54 million ahead of estimates for the month, 20.5% more than last September.
Hardy said it’s too early to tell if the surplus revenue collection numbers will continue but the signs are positive after the first three months.
“We are ending this first quarter with a very large bang, a good bang, and if this would continue we would be in a very, very large surplus position at the end of (fiscal year) ’24,” Hardy said.