January tax collections above assessments, as Western Virginia employees are considering future budget problems – Parkersburg News

(Stephen Allen Adams Graphics)

Charleston – The Tax Collections in West Virginia for the first month of the second half of the fiscal year 2025 were below the third time rates from last July, as the government Patrick Morrisi and civil servants and budget officers are looking for money for the next fiscal year. According to the monthly reported on Monday morning by the State Senate Financing Committee, January tax collection for the total revenue budget for the current fiscal year is $ 478 million, which is 2.8% below the estimated $ 491.8 million, determined by the State Department of Revenue. January joined August and October as the third month that tax events do not meet forecasts since the beginning of the fiscal year 2025 last July. But the fiscal annual tax collection remains only in black, with $ 3.15 billion for the first seven months of the fiscal year. That is .9% above the $ 3.13 billion revenue estimated, providing the state with an excess of $ 27.9 million. Civil servants of the former governor Jim justice have estimated that West Virginia will end the current fiscal year on June 30 with an excess of nearly $ 80 million. According to Morrisi and his revenue team, several state departments and agencies will need additional funding to reach the end of the fiscal year. At a press conference last week, Morrisi said the Ministry of Tourism, Public Defenders and the Ministry of Interior Security/Department of Adjustment and Rehabilitation will need a combined $ 81 million additional budget loans, otherwise some of these departments may expire at funding immediately after March. Morrisi said he inherited these problems from the previous administration.
“We know that many salaries, medical care, costs will expire in March.” said Morrisi. “This was deliberately done so that he needs to return to the legislature. We have to work to find a solution. “
Morrisi said his revenue staff were designing a $ 400 million hole in a fiscal 2026. A common revenue budget, starting from the day he took office on January 13th. Morrisi pointed to dependence on lump sums for previous budgets on the administration of justice, lack of shortcomings, under the financing of departments and agencies and growth of future expenses. Asked in December, justice said that there would be no budget hole in the next fiscal year. Morrisi will present his budget on the fiscal 2026 to the legislators on Wednesday, February 12, at the beginning of the regular legislative session in 2025 during his first state address. The State Constitution requires legislators to cross a balanced budget. Of the main sources of tax revenue for the state, only consumer sales and use tax and corporate net income tax were above forecasts. Sales tax revenue in January $ 163.6 million was $ 3.4% over $ 158.2 million in revenue valuation, providing the state with an excess of $ 5.4 million. Fiscal annual sales tax collections of $ 1.052 billion were .7% over $ 1.050 billion as a $ 7.5 million excess. The collection of a corporate net income tax for January is $ 27.6 million, or 214% over $ 8.8 million, providing an excess of $ 18.8 million a month. The fiscal year so far, the corporate net income tax of $ 205.4 million was 22% above the estimate of $ 168.2 million, providing the state with an excess of $ 37.1 million, with five months remaining during the current fiscal year. January $ 217.6 million income tax collections were 1.3% below $ 220.5 million forecast, while a $ 1.298 billion fiscal annual income tax collection was 1.3% below $ 1.315 estimate estimate dollars. 2% and 4% reduction in West Virginia income tax came into force on January 1. 4% income tax reduction will return $ 96 million to taxpayers when it is fully applied by the fiscal year 2026, while 2% income tax will return $ 46 million for taxpayers to the next fiscal year. Morrisi often says she supports recent decreases in personal income tax, while stating that these abbreviations are not paid in the current or the following common revenue budget.
“I strongly support the ongoing efforts to continue to reduce taxes. But as you know, I am very clear last year … I said, please continue to reduce taxes, but you have to pay for them, “ said Morrisi. “Taxes are not paid … We’ll find a way to do this.”
Despite the cold click in January, the collection of taxes on coal, oil and natural gas continues to enter from below. January $ 19.9 million tax collections were 58.9% below $ 48 million in revenue estimated a month. Fiscal annual collections of taxes for compensation of $ 147.6 million were 28.9% below the estimate of $ 207.5 million.
Stephen Allen Adams can be found at [email protected]