West Virginia November tax collections, investments add to surplus
Graphic by Steven Allen Adams
CHARLESTON — Tax collections in November, combined with $20 million in short-term investment returns, helped add to West Virginia’s growing tax revenue surplus. The state Department of Revenue and the Senate Finance Committee both released reports Monday detailing tax collections for November and the first five months of fiscal year 2026 for West Virginia’s general revenue fund. Tax collections in November of $442.4 million were 6.9% more than the nearly $414 million Department of Revenue estimate for the month, providing the state with $28.5 million in surplus tax collections over the 30-day period ending Sunday. Fiscal year-to-date tax collections between July and November were $2.231 billion, which was 6.3% more than the nearly $2.1 billion revenue estimate, providing the state with a $131.3 million surplus so far. “I’m encouraged by the growth trends in recent months that contribute to our FY 2026 surplus,” Morrisey said in a statement Monday. “West Virginia will continue making fiscally conservative decisions to capitalize on this growth and prepare for any budget challenges ahead.” According to the Department of Revenue, a contributing factor for the $28.5 million surplus in November was the transfer last month of $20 million by State Treasurer Larry Pack in interest revenue from investments managed by the West Virginia Board of Treasury Investments. “This transfer is a testament to our administration’s prudent financial management and the outstanding performance of the BTI,” Pack said in a statement last week. “These earnings directly benefit the people of West Virginia by strengthening our state’s financial foundation and supporting essential public services. I want to thank our staff for all their hard work as they continue to manage billions in assets for the people of West Virginia.” Both Pack and Morrisey serve on the board of directors of BTI, which manages more than $10 billion in short-term investments on behalf of the state and local governments. Pack has been a vocal proponent of a short-term tax break on tips and overtime income similar to a federal tax break President Donald Trump signed into law earlier this year that expires in 2028. “We say it all the time, but West Virginia is truly in the best financial shape we have ever seen it,” Pack said. “Our obligations are funded, record surpluses funnel in every month, and the state’s investments continue to see exceptional returns. The time is right to cut taxes. We are doing our part by returning money to the people of West Virginia.” Tax collections in November were also buoyed by positive personal income tax and consumer sales and use tax collections. However, tax collections for the corporate net income tax and the severance tax on oil, coal and natural gas came in under estimates for the month. November personal income tax collections of nearly $171 million were 18.4% more than the $144.5 million revenue estimate for the month, providing a $26.5 million surplus for the month. Personal income tax collections also outpaced November 2024 collections by 12.8%. Fiscal year-to-date personal income tax collections of $877.4 million were 8% more than the $812.3 million estimate. Personal income tax rates have already been cut three times since 2023 by a combined 27.25%. According to sources, Morrisey had been considering a December special session to consider collapsing West Virginia’s five tax brackets and implementing a flat 3.88% personal income tax rate, though Morrisey has only confirmed that he is in discussions with legislative leadership on a tax reform package. November consumer sales and use tax collections of $180.5 million were 6.9% more than the $168.8 million revenue estimate, providing an $11.7 million surplus for the month. Fiscal year-to-date sales tax collections of $803.6 million were 3.7% more than the $774.6 million revenue estimate, adding nearly $29 million to the state surplus. November corporate net income tax collections of $3.9 million were 68.8% below the $12.4 million revenue estimate. Fiscal year-to-date corporate net income tax collections of $103.5 million were 1.4% below the nearly $105 million revenue estimate. November severance tax collections of $27.1 million were 43.5% below the $47.9 million revenue estimate while fiscal year-to-date severance tax collections of $127.8 million were 3.5% below the $132.5 million estimate. Steven Allen Adams can be reached at sadams@newsandsentinel.com