CHARLESTON, W.Va. - West Virginia’s total General Revenue Fund (GRF) collections for August were $449 million, exceeding estimates by $34 million, or 8.4%. For the Fiscal Year-to-Date (FYTD) through August, total GRF collections of $838 million exceeded the estimate of $792 million by $46 million, or 5.8%. Total GRF collections for the FYTD were up $53 million, or 6.8%, over the prior FYTD.
“West Virginia continues to outperform expectations, with revenues running $46 million ahead of estimates just two months into the fiscal year,” said Governor Morrisey. “We are proving that we can deliver meaningful tax relief while keeping our state on strong financial footing. We will continue to hold the line on spending, grow our economy, and look for every opportunity to put more money back in the pockets of West Virginians.”
Personal Income Tax collections, the largest individual GRF component, were $169 million in August, exceeding the monthly estimate by $15 million. Personal Income Tax collections are $26 million above estimate for the FYTD, and are $36 million, or 12.5%, above the prior FYTD. Note that Personal Income Tax collections are likely to slow as the full effects of the Governor’s initiative to lower personal income tax rates by 5% fully implements.
Consumer Sales Tax collections exceeded the monthly estimate by $4 million (2.2%), with total collections for August reaching $187 million. For the FYTD, collections from the Consumer Sales Tax are $15 million, or 4.7%, ahead of estimate. Consumer Sales Tax collections are $21 million (6.8%) above the prior FYTD.
Severance Tax collections were $45 million in August, beating the estimate by $10 million. While Severance Tax collections are also above the prior FYTD by $10 million, or 35.7%, they remain below the FYTD estimate by $2 million, or 5.0%.
Corporate Net Income Tax collections in August were less than $1 million below estimate and, for the FYTD, are below the estimate and the prior FYTD by $2 million (12.9%) and $7 million (33.6%), respectively. Corporate Net Income Tax collections continue to trend downward because of the tax relief provided by the State’s conformity to the provisions of the One Big Beautiful Bill.
Tobacco Products Tax collections exceeded their estimate by less than $1 million in August and are $1 million above estimate for the FYTD. However, collections for the Tobacco Products Tax are down slightly from actual collections in the prior FYTD. As consumption patterns shift over time away from traditional cigarette products, it is anticipated that this category will continue to decline.
Insurance Tax collections were $2.3 million in August, beating the monthly estimate by more than $1 million. For the FYTD, collections are $1 million above estimate and less than $1 million above the prior FYTD.
Interest Income continues to exceed estimates, with $10 million in August, exceeding the estimate by $2 million, or 25.1%. For the FYTD, collections are nearly $4 million ahead of estimate but also $5 million below the prior FYTD. The short-term interest rate environment has remained elevated relative to expectations, leading to higher returns on the State’s short-term investments.