CHARLESTON, W.Va. — The state is in good shape so far when it comes to paying out tax refunds.
There was concern earlier this year that the Tax Department might be short on cash and have to dip into the Rainy Day Fund to get those refunds out on time. However, state Deputy Revenue Secretary Mark Muchow said refunds are going out “as normal.”
Coming up with enough money wasn’t easy. Muchow said the state had to take several money-saving measures.
“We’ve been fairly successful so far because we implemented some budget reductions, mainly through the hiring freeze. That’s effectively reduced the amount of outlays and expenditures that the state’s had to make,” explained Muchow.
Tax filings began arriving in late January, early February. Muchow said they’ve already started turning around those refunds and as of Tuesday, the state had shelled out more than $55 million in returns. That’s considered a short turnaround according to Muchow.
“Because we have positive cash flow we’re able to do the refunds. We’re almost at the tail end of February and refunds are going out pretty much the same way as they did last year,” said Muchow.
Because the refunds are flowing smoothly now, Muchow said there’s no reason to believe that won’t continue to be the case throughout the rest of the tax season.
“February is usually the busiest month on the personal income side, although we continue to have significant refund payments in March as well as April and May,” according to the deputy tax secretary.
The average refund for West Virginia residents ranges from $200 to $300.