State Revenue Comes In $100M Over Estimates

West Virginia’s tax collections were $100 million over estimates for the first three months of the fiscal year. October alone accounted for nearly $42 million. This is despite the effective tax rate being lower than last year. 

Year-to-date collections reached $1.789 billion, surpassing the year-to-date estimate of $1.686 billion by $102.9 million, and running 5.2% ahead of prior year collections.

Personal income taxes contributed most of that coming in nearly $39 million above estimate. The budget estimate for this month was lower than last year’s actual receipts. Collections totaled $167.3 million in October. That was $8.7 million above estimate. 

That reduced estimate is because current tax rates are nearly 6% lower than tax rates in place one year ago.

October severance tax distributions to local governments fell by 30% due to lower energy prices. 

In a case of failing to meet estimates being a good thing, tobacco excise taxes were $3.3 million below estimate and half a percent below prior year-to-date collections.