CHARLESTON, W.Va. — Two notable taxes fell below estimates in the state’s revenue collections for the first month of the fiscal year but at least one of them is a timing issue.
The state collected $23 million less in severance taxes in July than originally estimated and $5.4 million below estimates in the Consumer Sales Tax category.
The revenue collections for the first month of the new fiscal year were released Tuesday by the State Senate Finance Committee.
The collections for coal and natural gas severance taxes significantly missed the mark. The estimate was more than $27 million but the collections were just $3.7 million for the month but the committee explains the difference has to do with a payment to local governments.
Municipalities receive their payouts for severance taxes at the beginning of the fiscal year which is also the beginning of a new quarter. The state receives what’s left of severance taxes collected after the payouts.
MORE see Senate Finance Committee report here
Overall, the state began the new fiscal year by collecting $7.7 million more than the monthly estimate. Personal income tax collections were $13.8 million above estimates.
State government finished last fiscal year with a $1.8 billion surplus in collections and still has $451 million of that unappropriated. Ideas for some of the state surplus could be discussed during a possible special session of the legislature next week.