Charleston, W.Va. (WVDN) – May General Revenue Fund collections of nearly $349.9 million were less than $0.2 million below the monthly estimate and 12% below prior year receipts. A $13.7 million monthly surplus in severance tax and a $7.7 million surplus in monthly sales tax collections were offset by monthly shortfalls in personal income tax and corporation net income tax. May severance tax collections were 44.2% above prior May receipts due to higher natural gas prices and an increase in steam coal sales. Sales tax collections were up 4% over prior May receipts.
Cumulative collections for the first eleven months of this year totaled more than $4.94 billion, an amount that was nearly $236.9 million above estimate and 3.1% below prior year collections. The surplus was largely attributable to better than expected income tax collections along with higher than estimated interest income and miscellaneous transfers. These components were collectively $230 million above their estimates.
“Last month’s General Revenue Fund collections show that we must remain vigilant and focus on ensuring financial stability,” said Governor Morrisey. “We will continue to make fiscally responsible decisions to set up West Virginia for a prosperous future.”
Details by major component follow:
May Personal Income Tax collections totaled nearly $98.9 million. Monthly collections were $5.7 million below estimate and 28.5% below prior year receipts. The May shortfall offset a small portion of the $88 million monthly surplus in April collections. Tax refund payments were nearly $40 million higher this May as compared with May of last year. The increase in refund payments offset a $30.5 million decline in refund payments in April. Higher refunds are expected to continue in future months due to additional car tax credit claims not already made. Cumulative collections of nearly $1.919 billion were $92.3 million above estimate and 4.2% below prior year receipts.
Consumer Sales Tax collections of $170.9 million exceeded the May estimate by nearly $7.7 million. Monthly collections were a healthy 4.0% above prior year receipts. Year-to-date collections of more than $1.644 billion were $11.5 million above estimate and 2.3% ahead of prior year receipts.
May Corporation Net Income Tax collections were (-$7.8) million due to tax refund payments in excess of gross revenue collections for the month. Nearly $23 million in tax refund payments were made during the month as compared with less than $6.8 million in May of 2024. Cumulative collections of $320.8 million were 20.3% lower than prior year receipts, but $59.6 million above estimate. Federal tax policy uncertainty was a factor in recent tax collection trends relative to estimate.
Severance Tax collections totaled nearly $47.5 million in May and $347.1 million for the year-to-date. The May collections were $13.7 million above the monthly estimate and 44.2% above prior year May receipts. Year-to-date collections were less than $0.2 million below estimate and 4.9% above prior year receipts. Revenues from natural gas and steam coal improved significantly in recent months as inventories were replenished following a colder than normal winter heating season.
General Revenue Fund Tobacco Excise Tax collections of nearly $12.3 million were $0.3 million above estimate in May. Cumulative collections of $128.5 million were nearly $8.1 million below estimate and 9.0% below prior year receipts due to a trend of lower cigarette sales.
Interest Income totaled $13.9 million in May and $173.8 million for the year-to-date. Cumulative collections were $55.2 million above estimate, but 15.9% below prior year collections. Interest income is trending lower over time with declining short-term interest rates.
Review the May General Revenue Summary here.
