By Steven Allen Adams, The Parkersburg News and Sentinel
CHARLESTON, W.Va. — West Virginia just put a bow on general revenue fund tax collections for the first month of fiscal year 2025, coming in right at estimates. But nearly all major revenue streams, including personal income tax collections, were down as Gov. Jim Justice’s request for more income tax cuts remains in doubt.
According to data from the state Department of Revenue and the Senate Finance Committee, July tax collections were more than $335.3 million for the first month of fiscal year 2025. July collections were more than 1% above the department’s revenue estimate for the month and .1% above collections one year ago.
Helping to get tax collections in the black for July was corporate net income tax collections of nearly $19 million, which came in 78% above the $10.6 million revenue estimate and just a hair below July collections in fiscal year 2024 last year.
But personal income tax collections for July were down nearly 6% below the $151.8 million estimate, coming in at $142.9 million for the month. July personal income tax collections were also nearly 2% below collections this same time last year.
In comparison, fiscal year 2024 tax collections for July last year of $145.6 million were more than 10% above revenue estimates even with the 21.25% personal income tax cut that went into effect in January 2023 with the passage of House Bill 2526 in March of that year.
Another 4% cut in personal income tax rates will go into effect in January 2025 thanks to a personal income tax trigger built into HB 2526. A 4% personal income tax cut would return about $92 million to taxpayers in the next calendar year.