West Virginia Starts New Fiscal Year In Dark For July | Newspaper
CHARLESTON – July tax collections helped West Virginia start the upcoming 2022 fiscal year, although well short of the previous year’s collections when tax filing dates were moved due to COVID -19.
According to data from the Department of Revenue and the Senate Finance Committee, tax revenue for the month of July was $ 305.8 million, 10.1 percent higher than the revenue estimate of 277.7 million for the month, but 36.8% lower than last July’s $ 484 million in revenue. This gives the state a surplus of $ 28.1 million.
“We have to watch the store, don’t we? We need to care about the economy of who we are and what is happening in our state, ”Justice said Monday during his COVID-19 briefing. “We did, and we produced surplus after surplus in really trying and difficult times.
The disparity in revenue collection between July 2020 and July 2021 was due to the postponement of the income tax filing deadline from April 2020 to July 2020 after businesses closed in the spring of 2020 to slow the spread of the tax. coronavirus.
“We started last July with a negative number… in July we just started and ended July with $ 28.1 million more than the surplus,” Justice said. “
The $ 305.8 million does not include the $ 68 million the state borrowed from the Rainy Day Fund at the start of the fiscal year. The state code also allows the governor, by executive order, to borrow from the Rainy Day Fund between the start of the new fiscal year and October 31 to pay state bills until tax revenue. of the new fiscal year are coming. The funds must be repaid within 90 days.
July tax revenues were supported by strong collections of personal income tax, corporate net income tax and severance pay tax on coal and natural gas .
Personal income tax collections of $ 141.8 million in July are 11.6% higher than the revenue estimate of $ 127.1 million, but 48.7% lower than collections by $ 276.4 million from last July. Net corporate income tax collections of $ 11.1 million in July were 101.4% higher than the revenue estimate of $ 5.5 million, but 81.7% lower than collections of July 2020 of $ 60.4 million.
Coal and natural gas severance pay has generally been lower than estimated for most of the past year, but collections in recent months have improved. Severance pay tax collections in July – with an estimated deficit of $ 7.6 million – stand at $ 3.4 million, $ 10.1 million more than expected and $ 11.1 million million more than in July 2020, when the state posted a deficit of $ 6.7 million in severance tax collections – a 95.8% increase.
“I love it,” Justice said. “These are coal miners returning to work. It’s our gas folks working and stuff … it tickles me to death.
The only major tax that didn’t work as planned for July was the consumer sales and use tax. Sales tax revenue was $ 89.78 million, 4.9% below the revenue estimate of $ 94.4 million and just slightly below the July 2020 collections of 89 , $ 85 million.
“The result is it’s been a good month and a great job from all of our revenue officers,” Justice said. “It was our first month of fiscal 2020… we’re just going to keep riding. “
The new fiscal year began on July 1.
Steven Allen Adams can be contacted at [email protected]