State revenue office reports August shortfall; sales tax and interest offset weaker income and severance receipts

A revenue official (Speaker 1) told the Joint Government Finance Committee in Parkersburg that August general fund collections totaled $398.1 million, roughly $10.9 million below the official estimate and 3.1% below the same month last year. "The overall collections for general revenue in August were 398,100,000," the official said.

Sales tax led the gains: the official said sales receipts were about $166.2 million versus a $162.1 million estimate, a roughly 4.5% increase over August of last year. Personal income tax receipts were weaker than projected in August at about $145.4 million, roughly $10 million below estimate but still 3.1% higher than the prior year, the official said.

The official flagged significant volatility in the B&O and severance taxes, saying the severance tax was $12.6 million below estimate for the month and 38.4% below last year’s August collections. He added that timing of end‑of‑month payments contributed to the shortfall and that early September receipts improved the year‑to‑date severance figure.

Interest income provided an offset, the official said, reporting interest receipts were $8.6 million above estimate and about 6.2% higher than the prior year as a result of higher interest rates and strong cash balances.

On year‑to‑date figures through Aug. 30, collections totaled about $726.2 million, $13.1 million under estimate and 2.6% below last year. The revenue official said temporary borrowings from the Rainy Day fund and the income tax refund reserve were expected to be repaid in September; those items are excluded from the monthly totals he presented.

Looking ahead, the official described the department’s November 2023 estimates as the current baseline and said improved economic performance since that forecast means the state now expects a modest surplus for the fiscal year. He cautioned that September is the first major test month for corporate and quarterly income tax payments and will provide a clearer picture of fiscal trends.

The committee held a series of follow‑up questions on carbon‑credit income, the scope of state reimbursements for vehicle tax levies, and whether interest‑income gains would change agency budget requests; the revenue official repeated that many of those items require additional data or are administratively independent of agency operating budgets. The committee did not take formal action on the report.