CHARLESTON, W.VA. – The West Virginia Department of Revenue released revenue numbers on Wednesday, February 3, for the month of January showing cumulative collections of $2.29 billion that are nearly $169.5 million below estimate.
Revenue Cabinet Secretary Robert S. Kiss said he’s seeing consistent declines in Severance Tax and a lack of growth in Personal Income Tax and Sales Tax.
“Low energy prices are continuing to plague the energy sector,” Kiss said. “Coal, oil and gas industries are all affected.”
In January, General Revenue Fund collections of $374.3 million were 2.6 percent below prior year receipts and nearly $11.5 million below estimate. Cumulative collections of nearly $2.29 billion were $169.5 million below estimate and 5.5 percent, or $130.6 million, below prior year receipts.
The biggest deficits for January were in collection of Severance Tax, Interest Income and Business and Occupation Tax. The biggest deficits for the year-to-date were in the collection of Severance Tax, Personal Income Tax, Sales Tax and Interest Income.
Collections of interest in January:
- Severance Tax: Collections totaled more than $11.7 million for the month, an amount that was more than $16.5 million below estimate and 53 percent below prior year receipts. Cumulative General Revenue Fund Severance tax collections of $120.3 million were $111 million below estimate and 44 percent below prior year receipts.
- Personal Income Tax: Collections were 6.7 percent above prior year receipts in January due to timing issues. Collections were nearly 2 percent below prior year receipts despite a wage and salary withholding tax gain of 3 percent for the month. Year-to-date withholding tax receipts were still 0.5 percent below prior year collections. Quarterly estimated income tax payments were down 7.4 percent in January and 6.5 percent for the combined months of December and January. Year-to-date estimated income tax payments were 4 percent lower than prior year receipts. Cumulative income collections were more than $24 million below estimate and just 1 percent ahead of prior year receipts.
- Consumer Sales Tax: Collections were nearly 2.5 percent below prior year receipts, but still more than $0.4 million above estimate. The monthly revenue decrease was partially attributable to an increase in the quarterly local sales tax revenue distribution from less than $4.1 million last year to more than $10.5 million this year. After discounting gains from both additional local sales tax collections and a lower monthly transfer to the SBA, net collections were 1.3% lower than prior year receipts. Cumulative adjusted collections were largely unchanged from prior year receipts.
- Tobacco Product Excise Tax: Collections totaled $7 million in January. Monthly collections were $1.2 million below estimate. Cumulative collections of nearly $59.0 million were $1.3 million below estimate and 5.2 percent below prior year receipts.
- State Road Fund: Collections of more than $47.9 million exceeded the January estimate by $7.7 million and prior year receipts by 17.6 percent. Cumulative collections of $407.5 million were nearly $10.9 million above estimate. However, receipts were still 2 percent below prior year collections.