CHARLESTON, W.Va. (AP) — State tax collections continue to fall, driven mostly by a decrease in personal income tax collections.
Newly released August revenue reports show the state collected $114.6 million in personal income taxes in August, falling about $4.4 million short of estimates.
Deputy Revenue Secretary Mark Muchow tells The Charleston Daily Mail (http://bit.ly/176hH46) the drop is a combination of sluggish personal income and wage growth and a tax credit program for alternative fuel vehicles.
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 Earlier this year, legislators repealed the tax credit but many already had taken advantage of it.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.
Information from: Charleston Daily Mail, http://www.dailymail.com