State posts 19.5 percent revenue gain in January
The increase was fueled in large part by an additional deposit day which helped boost individual withholding payments by 17.5 percent for the month. Further, with the Internal Revenue Service’s delay in opening the federal electronic filing program, Virginia saw a corresponding postponement in state refund activity in January. Individual nonwithholding payments rose by 42.7 percent in January as the fourth estimated payment for tax year 2012 was due January 15, 2013.
“Virginia’s economy continues to slowly recover,” McDonnell said. “Our unemployment rate has fallen to a four-year low, and state revenue collections are increasing. This is progress, and it is testament to the bipartisan work we’ve done in Richmond to help create a positive economic environment for our private sector job creators. More Virginians are working, and that is having a positive impact on the Commonwealth’s bottom line.
Sales tax receipts registered an increase at 0.2 percent reflecting deteriorating consumer confidence and softer retail sales during the holiday season. Sales tax collections, adjusted for the partial repeal of the accelerated sales tax program, have grown 2.1 percent year to date and are now trailing the forecasted growth of 3.2 percent. January is a significant month for revenue collections
On a year-to-date basis, total revenue collections rose 6.2 percent through January, ahead of the annual forecast of 3.6 percent growth. Adjusting for the accelerated sales tax program, total revenues grew 5.8 percent through January, ahead of the adjusted forecast of 3.4 percent growth.