The Associated Press
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Manchin administration officials see further signs of a rebounding economy after West Virginia’s general revenues beat August’s estimate by $31 million.
State government collected $309 million in taxes last month, 11 percent more than expected.
Revenues are up 26 percent when compared to the same point in the previous budget year.
Sales and personal income taxes account for 70 of all general revenue. Each topped its August projection, and together provided about half the month’s excess revenue. Both showings indicate increased economic activity, said Deputy Revenue Secretary Mark Muchow.
“The August numbers were pretty impressive,” Muchow said Wednesday. “They suggest that we have some growth going on in the economy.”
Severance taxes on coal and other natural resources were also better than expected. The $47.7 million collected last month was $12.8 million above estimate, and more than double August 2009’s figure. Muchow said coal production is up for the fifth straight month, and that coal prices have increased as well.
Muchow noted that a temporary, stimulus-related credit for home-buyers may have played a role in the month’s numbers. He also said the revenue figures mesh with state employment data to suggest an improving economy.
Two months into the budget year, state general revenues total $648 million, or 9.3 percent above estimate. The state expects $3.7 billion by the year’s June 30 end.
