September tax collections keep West Virginia revenue in black, personal income numbers down
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CHARLESTON - Tax collections in West Virginia for the first three months of fiscal year 2027 are in the black, no thanks to September personal income tax collections which took a dip.
According to a monthly report released Thursday by the Senate Finance Committee, tax collections for the general revenue fund for the fiscal year beginning July 1 were $1.408 billion, which was 4.6% more than the $1.346 billion estimate set by the state Department of Revenue for the quarter.
"West Virginia continues to outperform expectations, with revenues now $62 million ahead of estimate through the first three months of the fiscal year," Gov. Patrick Morrisey said in a statement Thursday afternoon. "We're cutting taxes, attracting historic levels of investment, and keeping our state on strong financial footing. West Virginians are keeping more of their hard-earned money, and our revenues continue to exceed expectations."
Looking at the month of September, tax collections were $570.1 million, which was 2.9% more than the $554.1 million revenue estimate but 2.7% below September 2025 collections of $585.7 million.
Personal income tax collections for the quarter were up, but September personal income tax collections were down. Fiscal year-to-date personal income tax collections of $553.6 million were nearly 3% more than the $537.8 million estimate for a $15.8 million surplus. Quarterly personal income tax collections were largely on par with collections in the first three months of the previous fiscal year.
However, September personal income tax collections of $225.6 million were 4.4% below the $236 million revenue estimate and 8.9% below September 2025 personal income tax collections of $247.6 million. Morrisey pushed the Legislature to pass a 5% cut in personal income tax rates after lawmakers balked at his proposal for a 10% reduction.
The 5% cut, which was retroactive to January, follows a 21.25% cut in personal income tax rates in 2023, and a 2% and 4% cut in 2024. The personal income tax is the state’s largest revenue driver, bringing in $2.179 billion, or more than 38% of the total $5.694 billion collected in FY26 which ended on June 30. Of the $370.6 million in surplus collections for the previous fiscal year, nearly 43% of that came from $157.3 million in personal income tax surplus.
Corporate net income tax collections helped bridge the gap left by the decrease in personal income tax collections. September corporate net income tax collections of $67.1 million were 22.1% more than the $55 million revenue estimate for a $12.1 million surplus for the month.
Corporate net income tax collections helped bridge the gap left by the decrease in personal income tax. September corporate net income tax collections of $67.1 million were 22.1% more than the $55 million revenue estimate for a $12.1 million surplus for the month. Fiscal year-to-date corporate net income tax collections of $81.7 million were 13.9% above the $71.7 million revenue estimate, leaving a nearly $10 million surplus for the quarter after July and August corporate net income tax collections came in under estimate.
September consumer sales and use tax collections of $181.5 million were 2.5% more than the $177 million revenue estimate for a $4.5 million surplus. Fiscal year-to-date sales tax collections of $519.5 million were 3.9% above the $500 million revenue estimate, adding $19.5 million to the surplus for the quarter.
The severance tax on coal, oil and natural gas also brought in positive revenue numbers, with September collections of $45.4 million, or 13.4% above the $40 million revenue estimate, providing $5.4 million in surplus. Fiscal year-to-date severance tax collections of $86.7 million were 3.8% above the $83.5 million revenue estimate for a $3.2 million surplus after July and August collections came in under estimate.
Steven Allen Adams can be reached at sadams@newsandsentinel.com.