The West Virginia Department of Revenue Story Archives

Justice Picks New Chief of State's Department of Revenue

Gov.-elect Jim Justice says a Charleston attorney, accountant and Kanawha County commissioner will be his administration’s secretary of the Department of Revenue.

Dave Hardy, whose law practice focuses on energy and mining law, also teaches public budgeting at West Virginia State University.

He was elected to the Charleston City Council in 1995 and first elected to the Kanawha County Commission in 2002.

The native of Pratt, West Virginia, will resign from the commission effective Jan. 19 and start his state post the next day.

Justice says Hardy has the experience to help his administration “conquer the budget crisis.”

The state government has a projected $400 million deficit in its $4.1 billion budget.

Hardy will replace Robert Kiss, revenue secretary for Gov. Earl Ray Tomblin whose term is expiring.

State Says Tax Collections Below Estimates

West Virginia tax authorities say the state collected $295.6 million in November and $1.53 billion for the first five months of the state’s current fiscal year, both lower than budget estimates.

The Department of Revenue reports the shortfalls are $4.1 million for the month and $91.5 million for the five-month period.

Lawmakers are warning about funding shortages for government services.

Following a 15 percent increase in October, personal income tax collections declined 9.7 percent in November from the same month last year, attributed to timing factors and not declines in wage incomes.

Consumer sales taxes, which declined 6.1 percent in October, rose 3 percent in November.

Severance tax collections from mining, drilling and timber cutting were $26.6 million for the month, nearly 22 percent below receipts a year earlier.

State Reports Gains for Income Taxes, Employment

West Virginia is reporting a 15 percent increase in October income-tax collections, reflecting gains in employment from a year earlier, while overall state revenues of $322.3 million were 2 percent below this year’s budget estimate.

The Department of Revenue says overall collections for the first three months of the state fiscal year were almost $1.24 billion, slightly ahead of last year but $87.4 million below the estimate.

The hike in personal income taxes comes mainly from a 12.4 percent rise in payroll withholding.

The report shows quarterly severance tax distributions up slightly for coal but down 35 percent for natural gas and oil due to lower energy prices.

Department Secretary Robert Kiss says they’re seeing some better news than the state has seen for some time.

West Virginia Revenue Slide Continues as Energy Prices Drop

West Virginia’s budget gap has topped $60 million as low energy prices continue to dampen tax collections.

The West Virginia Department of Revenue says September’s tax collections missed estimates by $55.5 million. That pushed the deficit for the fiscal year’s first three months from $12 million at the end of August to $67.8 million.

The deficit is projected to grow to $250 million by the end of the fiscal year.

Revenue Secretary Bob Kiss attributes the decline to low energy prices that have eroded severance tax collections.

Severance tax collections for the fiscal year’s first three months were more than $43 million below estimates.

On Monday, Gov. Earl Ray Tomblin told most state agencies to cut spending by 4 percent to help close the gap.