CHARLESTON — Tax collections in West Virginia are tacking close to revenue estimates for the first five months of fiscal year 2025 thanks to better collections in November.

According to a monthly report released Monday morning by the state Senate Finance Committee, tax collections for the general revenue fund fiscal year-to-date came in at $2.101 billion, which was 0.24 percent more than the $2.096 billion estimate from the Department of Revenue.

November tax collections of $400.5 million were 4.9 percent above the $381.6 million revenue estimate, providing the state with $18.8 million in surplus collections for the month.

Tax revenues for July through November provided West Virginia more than $5 million in surplus tax collections. But fiscal year-to-date tax collections were 5.1 percent below tax collections for the same five-month time period in fiscal year 2024, or $112.6 million below collections for the previous fiscal year.

Three out of the state’s four major sources of tax revenue came in above estimates for the month, helping to keep tax collections close to official estimates in November. However, some of those collections remain below estimates for the first five months of fiscal year 2025.

November personal income tax collections of $151.6 million were 5.8 percent above the $143.3 million estimate, providing the state with $8.3 million in surplus collections. Fiscal year-to-date personal income tax collections of $853.5 million were 2.9 percent below the $878.7 million estimate, or $25.2 million below estimates. July-November tax collections were also 9 percent below collections for the same time period last fiscal year, or $84 million below collections for the previous year.

Consumer sales and use tax collections for November were $170.8 million, or 3.3 percent above the $165.4 million revenue estimate, providing the state a $5.4 million surplus for the month. Fiscal year-to-date sales tax collections of $719.8 million were 0.71 percent above the $714.8 million revenue estimate, giving the state more than a $5 million surplus.

November corporate net income tax collections of $15.6 million was more than the $4.6 million revenue estimate, providing the state a nearly $11 million surplus for the month. Fiscal year-to-date corporate net income tax collections of $123 million was 21.6 percent more than the $101.2 million revenue estimate for a $21.9 million surplus nearly halfway through the current fiscal year.

Tax collections for West Virginia’s severance tax on coal and natural gas continue to struggle, with collections for four out of the last five months coming in below estimates. November severance tax collections of $18.9 million were 29.1 percent below the $26.6 million revenue estimate, or $7.7 million below estimates. Fiscal year-to-date severance tax collections of $87.3 million was 23.7 percent below the $114.4 million, or $27.1 million below estimates.

State revenue officials and Gov. Jim Justice said last month that West Virginia is on track to end fiscal year 2025 at the end of June 2025 with approximately $80 million in surplus tax collections. That is a far cry from $826 million in surplus for fiscal year 2024 and $1.8 billion in surplus for fiscal year 2023.

Much of the reduction in tax collections comes from the 2023 tax reform package that cut personal income tax rates by 21.25 percent retroactive of January 2023, returning nearly $500 million to taxpayers and reducing personal income tax collections, which account for nearly 40 percent of general revenue fund collections.

The state will see additional personal income tax collections beginning in January 2025. After the end of fiscal year 2024, the Department of Revenue determined in August that the state would see a 4 percent personal income tax cut at the beginning of 2025, which will return $92 million to taxpayers when fully implemented.

Justice and the Legislature also agreed on an additional 2 percent personal income tax cut in a special session at the beginning of October, which will also go into effect in January 2025 and return $46 million to taxpayers when fully implemented.