West Virginia October Tax Collections Miss Target by $7.7 Million

West Virginia’s general revenue collections for October came in below the state’s monthly estimate by $7,700,683. Total collections for the month reached $380,374,317, falling short of the projected $388,075,000.

The monthly dip was driven primarily by corporate net income tax. Revenue Secretary Eric Nelson explained that the category was down more than $17 million versus estimates for the month. He noted that while collections were stronger than expected, refunds outpaced them.

Nelson cited several large refunds totaling over $18 million as a key factor. He attributed the shift to tax effects on corporations and the Big Beautiful Bill. These adjustments resulted in a net negative for corporate taxes despite higher gross collections.

Personal income tax and consumer sales tax performed better than their monthly targets. Severance tax also beat its projection, a notable result given that October typically yields the lowest estimates due to annual local resource distributions.

Despite the October miss, cumulative fiscal year-to-date collections remain positive. The state has collected $1.79 billion so far this fiscal year, surpassing expectations by more than 3 percent. Nelson described the collections as steady for the month and year-to-date.

Other categories, including tobacco products tax, insurance tax, and interest income, hovered near their targets. Nelson said these areas remained stable despite lingering market uncertainties.