Revenue growth in West Virginia continues to set records

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Revenue growth in West Virginia continues to set records
The West Virginia revenue growth rate was the highest on-record for a December in West Virginia since at least the 1970s.

West Virginia's general revenue collections for December 2021 came in at $506.8 million—a "staggering" $124.4 million above estimates and 32.6 percent ahead of prior year receipts, according to the office of Gov. Jim Justice.

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This revenue growth rate was the highest on record for December in West Virginia since at least the 1970s.

“We really have the economic engine of this state humming in a way that it hasn’t for a long, long time,” Justice said during a morning press conference.

“Month after month, we are setting record after record with our revenue collections. It’s flat-out outstanding. The people of West Virginia should be incredibly proud of what we’ve done, and I truly believe that we are only just getting started. There’s more and more goodness to come.”

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Now halfway through fiscal year 2022, year-to-date collections of nearly $2.518 billion are $393.9 million above the year-to-date estimate.

Personal income tax collections were $26.8 million above monthly estimate and 13.9 percent ahead of the prior year.

Year-to-date collections were $117.4 million above estimate, and adjusted year-to-date collections (after the removal of prior year deferred collections) were 10.4 percent ahead of last year.

Corporate net income tax collections were $51.1 million above monthly estimate and nearly 96 percent ahead of the prior year. Year-to-date corporate net income tax collections were $94.7 million above estimate and 67.8 percent ahead of prior year adjusted receipts (after removal of prior year deferred collections).

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Consumer sales tax receipts were $20.1 million above monthly estimate and 18.1 percent ahead of the prior year. Year-to-date collections were $65.4 million above estimate and 9.0 percent ahead of the prior year.

Monthly severance tax collections totaled nearly $62.6 million. Collections were nearly $30.4 million above estimate and 300% ahead of last year. Year-to-date cumulative general revenue fund severance tax collections were $116.8 million above estimate and $184.4 million ahead of the prior year. Year-to-date severance tax collections for all funds were 168 percent ahead of last year.

Energy prices remain highly elevated even after some moderation in the past month.

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West Virginia continues to enjoy an unprecedented era of success and prosperity, according to the governor's office.

After inheriting a $500 million budget deficit, Justice led the state to a string of consistent budget surpluses, his office reporter, "by using his lifelong experience as a businessman to make West Virginia a more business-friendly state and by standing behind the energy industry."

West Virginia has broken the all-time record for the lowest unemployment rate in state history in back-to-back months. In October, the state also cracked the top 10 states in the nation for quarterly gross domestic product growth.

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