West Virginia’s tax collections for the first five months of fiscal year 2025 are close to revenue estimates, with November showing better than expected collections. The state Senate Finance Committee’s monthly report revealed tax collections of $2.101 billion, slightly above the $2.096 billion estimate. November tax collections of $400.5 million exceeded the $381.6 million estimate, providing an $18.8 million surplus for the month.
Governor Jim Justice expressed optimism about West Virginia’s growth and success, highlighting over $1 billion in permanent tax cuts. Despite some tax collections falling below estimates, three out of four major revenue sources exceeded projections in November, helping to keep overall tax collections in line with official estimates.
However, severance tax collections on coal and natural gas continue to struggle, with November collections falling 29.1% below estimates. Despite challenges, state revenue officials and Governor Justice project an $80 million surplus for fiscal year 2025, a significant decrease from previous years. The reductions in tax collections are mainly attributed to the 2023 tax reform package that cut personal income tax rates and returned millions to taxpayers. Additional personal income tax cuts are also set to take effect in January 2025, further impacting state revenue.
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