West Virginia Surpasses Fiscal Year Tax Revenue Target by $1.3 Billion

April 3, 2023

Mountaineer News

WV Fiscal Headlines

CHARLESTON, WV (Mountaineer News) - West Virginia's economy seems to be in a bullish phase as the state's tax revenue collections have been way beyond what was budgeted for the fiscal year. According to March numbers released by the Senate Committee on Finance, the state has already collected almost as much in taxes and fees as it had budgeted for the entire fiscal year.

The March tax collection figures are particularly impressive, with the state collecting $517.8 million, which is $159 million more than what was estimated. In fact, for the entire fiscal year, the state has already collected $4.6 billion, which is a mere $35 million short of what was budgeted. This means that the state has exceeded its budgeted estimates by a staggering $1.3 billion already this fiscal year, with personal income tax collections accounting for $246.7 million of that overage.

Mining minerals such as coal, oil, natural gas, limestone, and sandstone are a significant part of West Virginia's economy. The state's severance tax collections, which are assessed on these minerals, have also been way overestimated. The state is nearly $605 million over its estimates for the year and has already collected more than three times the $250 million in estimated severance taxes for the full fiscal year.

Overall, the state's economy seems to be flourishing, with March tax collections being $29.6 million more than they were in March 2022. Additionally, the fiscal year collections are $635 million more than they were at this point a year ago, indicating a significant upward trend. It remains to be seen how the state government will allocate the surplus tax revenue and how it will impact West Virginia's economic landscape in the future.