West Virginia revenue collections exceed estimates for August

West Virginia’s General Revenue Fund (GRF) collections for August reached $449 million, exceeding monthly estimates by $34 million. For the fiscal year-to-date through August, total collections of $838 million have surpassed estimates by $46 million, representing a 6.8% increase over the same period last year.

Personal income tax remains the primary driver of this surplus. August collections for this category totaled $169 million, which was $15 million above the monthly estimate and $36 million higher than the previous year. Revenue Secretary Eric Nelson attributed the increase to higher wages and increased withholdings. However, officials noted that these collections may slow as a recent 5% personal income tax rate reduction fully takes effect.

Other revenue streams showed mixed results. Consumer sales tax collections reached $187 million for the month, exceeding estimates by $4 million. Severance tax collections were $45 million, beating the monthly estimate by $10 million. Conversely, corporate net income tax collections have continued to trend below both estimates and prior-year levels.