Low Natural Gas Prices Impacting State Revenues

Posted on:

< < Back to

Low natural gas prices are taking their toll on West Virginia general tax revenues.

State tax collections totaled $316 million in March, or $14 million less than expected.

That dropped general revenues further behind for the budget year that began July 1. The state is $49 million below estimate, or 1.7 percent.

Administration officials now expect the budget year to end at least $60 million in the red.

Last month's results mostly reflect a decline in the biggest revenue source, personal income taxes. Officials say low gas prices are slowing the state's economy. Reduced coal production and jobs continue to play a role as well.

Another major revenue source is the sales tax. That's been hurt by the federal payroll tax increase and the cut to the so-called food tax.