WV Tax Revenue Falls by $42M in November
WV General tax revenues fell short of their mark by $42 million in November, its worst in almost two years. Income tax refunds accounted for much of the shortcoming according to Deputy Revenue Secretary Mark Muchow. He claimed that both individuals and corporations overpaid last year due to uncertainty about 2010 federal taxes. These refunds supposedly accounted for $33 million of the shortcomings.
Coal and natural resource tax proceeds were also $7.3 million below their expected amounts in November. However, sales and use taxes were $3.6 million higher than planned.
“If you put the two months together, October and November, the collections this year are about the same as last year, not much change,: Muchow said. The energy sector has been keeping the state’s revenue in check; energy tax revenues are up about 22% from this time last year.
Overall, West Virginia collected $242 million in November and is $27 million, or 1.7%, ahead this fiscal year. In fact, the National Conference of State Legislatures found West Virginia one of only seven states that show positive fiscal outlooks for this fiscal year. “The state is, basically, on track. Revenue growth, year to date, is 3.1% higher than this time last year. That’s pretty much on track with our expectations,” Muchow claimed.
The state plans on collecting just over $4 billion in taxes this fiscal year.
Gov. Earl Ray Tomblin says he is concerned about a possible European recession, pointing out that Europe accounts for over half of WV exports – mainly coal.
Below are some graphics from the Tax Foundation illustrating where WV stands compared to other states’ tax rates.