By Charles Young, WV News
CHARLESTON, W.Va. — West Virginia’s declining severance tax revenues are merely a “blip in the screen” of an otherwise economically thriving state, said Gov. Jim Justice on Tuesday.
At five months into Fiscal Year 2024, the state’s severance tax collections have declined 83% compared to the same period last year, according to the West Virginia Department of Revenue.
During September’s meeting of the West Virginia Legislature’s Joint Committee on Finance, state Deputy Revenue Secretary Mark Muchow said the official estimate for FY 2024 showed a decline in severance taxes of more than $633 million, or 66.9%.
Justice downplayed the severance tax drop during a press briefing Tuesday.
“I think that the revenue folks do an amazing job, and I think that they’re relatively close,” he said “If we have a blip in the screen and everything, we’ll adjust.”
The state’s cumulative revenue collections continue to come in above official estimates, Justice said.
“We’re pushing $300 million of surplus above budget right now, and we’re hopeful that is going to continue on,” he said. “At the same time, like I said, if we have that blip, we will do something about it.”
