December 2, 2004

Coal Fuels State Revenues

Staff
Charleston

The state's revenue collections are nearing $100 million ahead of estimates for this fiscal year mainly due to the booming coal market.

State Tax Department expert Mark Muchow says severance tax revenues are running 55 percent ahead of last fiscal year's pace or $33.4 million above estimates.

Muchow says he expects coal to remain strong over the final seven months of the fiscal year, but the final collection numbers will likely be 30 percent above last year's figures.

Muchow says the high price for gasoline continues to have an impact on the state's economy. He says residents are buying gas, but not much else. He says sales tax revenues are currently $5.1 million below estimates for the fiscal year. Muchow says the holiday shopping season could help that number.

Muchow says the revenue picture is solid heading into the new Manchin Administration, but warns the state is making most of its money these days on volatile sources, coal and the state lottery. He says those fortunes could change very quickly.