CHARLESTON, W.Va. — The state’s revenue collections in February exceeded estimates by $50 million.
State Revenue Secretary Eric Nelson said collections for personal income tax and consumer sales tax did well for the month.
“When you look at what’s driving the economy you look at those two line items and of course those two line items also make up three-quarters of our general revenue,” Nelson said Monday during an appearance on MetroNews “Talkline.”
Personal income tax collections were $31 million above estimate while consumer sales tax was $2.3 million above estimate.
Nelson said the collections on the state’s other taxes were mainly flat for the month.
Nelson said a solid February builds on a revenue collection surplus eight months into the fiscal year.
“Year-to-date almost $160 million above estimate which is about four percent above estimate which is about four percent over the prior year,” Nelson said.
Gov. Patrick Morrisey liked the new numbers.
“I’m encouraged by the continuing growth in overall collections,” Morrisey said. “Current trends bode well for a significant year-end surplus in comparison to the estimates for this year.”
Morrisey also announced Monday that longtime state Deputy Revenue Secretary Mark Muchow is retiring this month after 44 years with state government.
“I would like to acknowledge the tremendous commitment and dedication we have received from Deputy Revenue Secretary Mark Muchow,” Morrisey said. “Mark has been directly responsible for setting our state’s revenue estimates for more than 35 years, and his contributions have been invaluable. Join me in thanking Mark and wishing him the very best in retirement.”
Other information released Monday:
Personal Income Tax: February collections reached $109 million, which is $31 million above estimate and 7.8% higher than last year. Year-to-date totals exceed $1.404 billion, outperforming estimates by more than $73 million despite tax rate cuts and the introduction of the refundable motor vehicle tax credit.
Consumer Sales Tax: February collections totaled $155.2 million, up 8.4% from last year and $2.3 million above estimate. Year-to-date collections stand at $1.301 billion, exceeding expectations by $31.3 million.
Severance Tax: Collections of more than $57 million in February were significantly above estimate by $24.6 million, buoyed in part by an early-February carryover. Year-to-date totals of $261.3 million are 35.2% higher than the previous year.
Corporation Net Income Tax: February collections reached $5.6 million, $1.8 million above estimate, contributing to year-to-date totals of $178.6 million.
Tobacco Excise Tax: February collections totaled $11.5 million, with year-to-date totals of $90.8 million, reflecting a continued shift in consumer purchasing patterns.
Insurance Premium Tax: February collections were $2.9 million, impacted by a larger-than-expected shift of payments into March.
Interest Income: February collections of $11.6 million brought year-to-date totals to $102.1 million, performing $25.6 million above estimate.