State revenue collections in February were $50 million above estimate and nearly 7% higher than February of last year.
Gov. Patrick Morrisey announced Monday that West Virginia’s February FY2026 General Revenue Fund collections once again “exceeded expectations, reflecting continued economic strength and responsible financial management across the state.”
“I’m encouraged by the continuing growth in overall collections,” Morrisey said. “Current trends bode well for a significant year-end surplus in comparison to the estimates for this year.”
February collections totaled $379 million.
Year-to-date collections have now surpassed $3.612 billion, placing the state $159 million above the revenue estimate and 2.9% ahead of prior year levels.
Personal Income Tax: February collections reached $109 million, which is $31 million above estimate and 7.8% higher than last year. Year-to-date totals exceed $1.404 billion, outperforming estimates by more than $73 million despite tax rate cuts and the introduction of the refundable motor vehicle tax credit.
Consumer Sales Tax: February collections totaled $155.2 million, up 8.4% from last year and $2.3 million above estimate. Year-to-date collections stand at $1.301 billion, exceeding expectations by $31.3 million.
Severance Tax: Collections of more than $57 million in February were significantly above estimate by $24.6 million, buoyed in part by an early-February carryover. Year-to-date totals of $261.3 million are 35.2% higher than the previous year.
Corporation Net Income Tax: February collections reached $5.6 million, $1.8 million above estimate, contributing to year-to-date totals of $178.6 million.
Tobacco Excise Tax: February collections totaled $11.5 million, with year-to-date totals of $90.8 million, reflecting a continued shift in consumer purchasing patterns.
Insurance Premium Tax: February collections were $2.9 million, impacted by a larger-than-expected shift of payments into March.
Interest Income: February collections of $11.6 million brought year-to-date totals to $102.1 million, performing $25.6 million above estimate.
Morrisey has pushed for a 10% tax cut to come out of this year’s legislative session, largely based on expected budget surpluses. The Senate has moved to include that cut in its budget, but the House of Delegates has so far resisted.
Under House Bill 2526, passed in 2023, the state currently has a procedure in place to reduce personal income taxes based on certain revenue thresholds. Any tax cuts passed during this session would be on top of those trigger-based cuts.
