Despite personal income revenue shortfall, WV ends November with $112M surplus

However, the government collected $158,917,781 from personal income taxes, when officials had budgeted for the collection of $169.34 million in November.

The state exceeded collection in all of its other revenue streams.

The personal income tax annually contributes the most to the state’s general revenue fund, accounting for between 40% and 50% of the money collected for that fund.

Gov. Jim Justice didn’t acknowledge the one budget shortfall in a news release Thursday. Instead, he acknowledged the overall surplus and noted that the state collected more personal income tax revenue in November 2022 than it did in November 2021.

To date, the government has collected just shy of $2.5 billion, about 54% of the $4.6 billion that officials estimated the state will collect for fiscal year 2023, which began July 1.

Justice said Thursday that the overall revenue surplus represents an “incredible opportunity” for tax cuts for West Virginians.

“Our revenue collections continue to exceed our expectations in an incredible way,” the governor said. “West Virginians spoke loud and clear with their vote in the election — they want tax cuts, but they want them done responsibly.”

Justice was referring to voters’ collective rejection of four proposed amendments to the West Virginia Constitution during the 2022 general election in November.

Before the election, the governor had toured the state, campaigning against Amendment 2, which would have given lawmakers the option of eliminating taxes on business inventory and machinery taxes, as well as personal property taxes on motor vehicles.

West Virginia political experts told the Gazette-Mail last month that voters’ rejection of all four of the proposed constitutional amendments likely had more to do with a distrust of elected officials in, and decisions that come from, Charleston as a whole and less to do with their personal feelings about any single tax reform proposal.

The state has exceeded revenue estimates for the fiscal year by almost $687.5 million, thanks to the executive and legislative strategy that has the Legislature flatlining budgets for at least the past four years in response to Justice’s lowball revenue estimates.

In other revenue collection, the government collected $112.366 million from the severance tax. That’s $88.3 million more than officials projected would be collected.

The state collected $153.2 million from the consumer sales tax, beating estimate of $138.1 million by $15.1 million. The consumer sales tax revenue for November represents sales made during October.

The government collected $14.4 million from its taxes on tobacco, $1.5 million more than officials budgeted.

The state also exceeded its lottery revenue estimates by $23.76 million, collecting $109.361 million in November.