Charleston, W.Va. (WVDN) — In March, West Virginia’s revenue collections of more than $439.5 million were nearly $39.4 million above the monthly estimate and 9.8% below prior year receipts. Overall prior March General Revenue Fund collections were 9.8% higher due to one-time events during that month.
“While we are optimistic that March revenues exceeded expectations, we remain vigilant as West Virginia’s financial challenges remain,” said Revenue Secretary Eric Nelson. “We are committed to working with the Governor’s office and the Legislature as the budget process continues.”
Cumulative collections for the first nine months of this year total more than $3.948 billion, an amount that is nearly $101.1 million above estimate and 2.9% below prior year collections. The surplus was largely attributable to better than expected corporation net income tax collections along with higher than estimated interest income and miscellaneous transfers. These three components were collectively nearly $111 million above their collective estimates. Details by major component follow:
March Personal Income Tax collections totaled nearly $135.9 million. Monthly collections were nearly $7.1 million above estimate and 31.5% below prior year receipts. Prior year receipts reflected the impact of more than $135 million in tax payments from business entities, an amount that was more than double current March receipts. The March surplus relative to estimate was due to lower than expected tax refund payments. The new motor vehicle property tax credit contributed to some slowdown in return filings and refund claims to date in comparison with estimates. Cumulative collections of more than $1.535 billion were nearly $11.1 million above estimate and 6.1% below prior year receipts.
Consumer Sales Tax collections of $142.8 million fell short of the March estimate by nearly $7.6 million. Monthly collections were 3.0% below prior year receipts. Year-to-date collections of more than $1.338 billion were nearly $2.3 million below estimate and 1.7% ahead of prior year receipts.
March Corporation Net Income Tax collections of $17.6 million were $8.4 million above estimate and 14.6% above prior year receipts. Cumulative collections of more than $228.2 million were 11.9% lower than prior year receipts but $48 million above estimate. Federal tax policy uncertainty was a factor in recent tax collection trends relative to estimate.
Severance Tax collections totaled nearly $62.6 million in March and $255.8 million for the year-to-date. March collections were $20.7 million above the monthly estimate and 30% above prior year receipts. An upward movement in natural gas prices related to winter heating needs was a contributing factor to the higher tax receipts. Year-to-date collections were still nearly $22.3 million below estimate and just 3.4% above prior year receipts. Low energy prices had played a significant role in revenue performance over the past two years.
Tobacco Products Tax collections of slightly more than $11.0 million were $0.7 million below estimate in March. Cumulative collections of $105.2 million were $8.2 million below estimate and 9.2% below prior year collections.
Interest Income totaled nearly $11.9 million in March and more than $145.6 million for the year-to-date. Cumulative collections were $39.9 million above estimate but 14.4% below prior year collections. Interest income is trending lower over time with declining short-term interest rates.
A summary of General Revenue for March of FY 2025 can be viewed here.
