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October 14, 2014 Published in From Richmond, Top Stories

Sept. 2014 General Fund Revenue Collections Up 5.3% From Previous Year Fiscal-Year-To-Date Collections up 6.7%

Today, Governor McAuliffe announced that the Sept. General Fund revenue increased 5.3% from the previous year with all major sources contributing to the increase.  This is the first time revenues have increased for three consecutive months since April-June of 2013.  The Governor also stated that Sept. completes the first quarter of fiscal year 2015 and is a significant month for revenue collections. Estimated payments from individuals, corporations, and insurance companies are all due in Sept., along with regular monthly collections in withholding, sales taxes, and other sources.

“I am pleased to see that our revenue collections are up, however, we must remain cautious because the Commonwealth has only collected about one-quarter of its general fund revenue estimate to date. My administration will continue to take a prudent approach to help ensure that Virginia remains fiscally strong,” said McAuliffe.

On a fiscal year-to-date basis, total revenue collections rose 6.7%, well ahead of the revised annual forecast of 2.9% growth.  The main drivers of the revenue increase were the individual income tax, the corporate income tax, and sales tax.  With an additional deposit day compared with last year, collections of payroll withholding taxes rose 8.3% in Sept. Sept. is a significant month for collections in non-withholding, since the first estimated payment for fiscal year 2015 is due.  Collections rose 2.8% in Sept. from last year.  Collections of sales and use taxes, reflecting August sales, rose 3.5% in Sept. As with non-withholding, Sept. is a significant month in corporate income tax collections, since the first estimated payment for the fiscal year is due in Sept.  Collections of corporate income tax grew 6.9% in Sept. from Sept. of last year.  Finally, collections of wills, suits, deeds, and contracts – mainly recordation tax collections – were $26.4 million in Sept., compared with $25.9 million in Sept. of last year.  The 1.9% growth in Sept. ended 13 consecutive months of negative growth.

On a year-to-date basis, collections of payroll withholding taxes – 64% of General Fund revenues -- increased 6.3%, ahead of the revised annual forecast of 2.7% growth.  Year-to-date non-withholding collections were $427.7 million compared with $372.8 million in the same period last year, rising by 14.7% and ahead of the annual estimate of 6.3% growth.  Sales tax collections – 19% of General Fund revenues – increased 4.6% through Sept., ahead of the annual forecast calling for a 4.4% increase.  Through the first quarter of the fiscal year, corporate income tax collections have grown 12.4% from the same period last year, ahead of the annual estimate of a 0.9% decline.

 

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