Compared to last year, West Virginia took in one percent more revenue this April, according to a new report from the State Budget Office.
Revenue for the month totaled $644 million, compared to $635 million last year. For the fiscal year, the state’s revenue has surpassed $4.5 billion, exceeding state estimates of $4.3 billion. That amounts to a $200 million budget surplus this year.
It’s a slight increase, bucking a longer-term decline in state revenue spurred on by declining population and tax cuts. West Virginia passed several cuts to personal income tax in recent years including a massive cut of more than 20% in 2023.
According to a release from the West Virginia Department of Revenue Thursday, the excess revenue is due in large part to personal income tax. April collections were $88 million above estimate, because fewer people received tax refunds and more people had to pay than originally estimated.
“Today’s revenue projections are good news for West Virginia, as the additional expected revenue will help us address future fiscal challenges,” said Gov. Patrick Morrisey in the release. “With our known challenges with PEIA and potential changes in federal spending and tax policies, we need to be conservative in our own state budget planning and maintain a healthy reserve.”
Consumer sales tax collections of $135.1 million also exceeded the April estimate by $6.1 million, and were 6% above prior year receipts. Corporation net income tax collections of more than $100 million were above estimate but almost 25% below prior year receipts. The report indicated federal tax policy uncertainty was a factor in tax collection trends.
