CHARLESTON, W.Va. (AP) — State tax collections continue to fall, driven mostly by a decrease in personal income tax collections.
Revenue reports show that the state collected $273 million in tax revenue in August, falling $14.4 million short of estimates.
Personal income tax collections totaled $114.6 million, about $4.4 million below estimates. The decline is a combination of sluggish personal income and wage growth and a tax credit program for alternative fuel vehicles, Deputy Revenue Secretary Mark Muchow told media outlets on Tuesday.
The tax credit program originally was meant to provide credits for those who purchased natural gas or propane-powered vehicles, but lawmakers expanded it in 2011 to include any alternative fuel vehicle. Earlier this year, legislators repealed the tax credit but many already had taken advantage of it. Muchow estimated it could cost the state about $100 million.
Severance tax collections totaled $34.3 million in August, $2.8 million below estimates.
But sales tax collections exceeded estimates by about $200,000 for the first two months of the fiscal year that began July 1.