Virginia Posts 2.6% Revenue Increase in September

Tagged in: Advocacy
Virginia Posts 2.6% Revenue Increase in September

Governor Bob McDonnell announced that September revenue collections increased by 2.6 percent from September of last year. September is a significant month for revenue collections because in addition to normal collections, the state also receives the first estimated income tax payment from individuals and corporations. On a year-to-date basis, total revenue collections rose 2.8 percent through September, ahead of the annual forecast of 1.5 percent growth. Adjusting for the accelerated sales tax program and the 0.125 percent sales tax transfer required by last session's historic transportation bill, total revenues grew 3.5 percent through September, ahead of the adjusted forecast of 1.4 percent growth.

The increase in September revenue was driven by growth in individual withholding, corporate income taxes and individual nonwithholding. Individual withholding rose 2.9 percent and individual nonwithholding grew by 2.1 percent. Corporate income tax collections increased by 16.7 percent. At the same time, sales and use taxes, reflecting sales made in August, fell 2.7 percent.

Speaking about the September numbers, Governor Bob McDonnell noted, "September was a positive revenue month for the Commonwealth, and we continue to run well ahead of our forecasted fiscal growth for the year. This is empirical evidence that the bipartisan steps we've taken here in Richmond to help the private-sector grow and create good jobs for our people are working. Unfortunately, the efforts we've undertaken in Virginia to make government function better, and use limited state resources wisely to improve the quality of life of our citizens, are being undermined daily by the dysfunction in Washington D.C. The ongoing federal government shutdown will have a direct negative impact on state revenues in the months ahead, just as it is already having a direct, negative impact on Virginians in their daily lives. The success of our Commonwealth is being threatened by the ineptness of Washington. I continue to call on leaders in both parties to reopen the federal government immediately, and come together to find solutions to the challenges facing our great nation."

The September revenue numbers are available at this link: http://www.finance.virginia.gov/KeyDocuments/RevenueReports/MasterReportsList.cfm

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