The state could end the fiscal year with a tax collection surplus of more than $270 million. State Deputy Revenue Secretary Mark Muchow tells MetroNews that through May tax collections exceeded estimates by $273 million. He says that's a good sign for the end of the fiscal year coming up June 30.
"We knew we were going to be at least $200 million above estimate (for the fiscal year), I believe we will hold on to the $273 million and may go above that by the end of the year," Muchow said.
The driving forces behind the collection numbers have been income taxes and severance taxes. Muchow says those two areas make up 86 percent of the surplus in collections.
"Corporate taxes being up over 37 percent and severance taxes being up over a double-digit margin through the end of May indicate some positive growth," Muchow said.
Businesses in West Virginia, like in other states, were impacted by the recession, but Muchow says recovery has been better than expected.
"Certainly those numbers have surprised us on the high side," he said.
Severance tax collections hit a record amount in May at more than $65 million. The high demand and corresponding high price for coal pushed the collections nearly $40 million more than last year at this time.
Muchow says the state Road Fund is also benefiting in the current atmosphere with fuel tax collections and the taxes paid on new automobile purchases. Muchow predicts the Road Fund will finish at about $650 million for the fiscal year, which would be roughly $20 million more than the current budget year.