The growth was largely due to payroll withholding and sales taxes, with recordation taxes and insurance company premiums also contributing to the growth. Because a number of factors can influence the flow of payments and monthly growth rates at this time of year, December and January receipts must be considered together to get a clear picture of revenue growth. On a fiscal year-to-date basis, total revenue collections rose 1.6 percent, behind the annual forecast of a 3.2 percent increase.
Speaking to December general fund revenue collections, Governor McAuliffe said, “General fund revenue collections continue to be positive for Virginia as our economy continues to find its footing in the wake of sequestration. I am encouraged by our ongoing revenue growth, but we cannot be complacent during the two year grace period we now have before sequestration is revisited at the federal level. We must take advantage of this opportunity to diversify our economic base and create a new Virginia Economy.”
Below are the details of general fund revenue collections for December:
- Collections of payroll withholding taxes grew 3.5 percent for the month, topping last December’s record as the largest collections month ever.
- Nonwithholding collections dropped .6% from the collections in this source during December 2014. However, December and January are significant months for collections of nonwithholding, and receipts can be distorted by the timing of payments. Taxpayers have until January 19 to submit their fourth estimated payment for tax year 2015 and only a portion of these payments are received in December. A clearer assessment of growth will be possible at the end of January, when all quarterly payments have been received.
- Collections of sales and use taxes, reflecting November sales, rose 4.1 percent in December. November only represents the beginning of the holiday shopping season. The bulk of holiday shopping occurs in December and those collections will not occur until January.
- Collections of corporate income taxes were $149.4 million in December, compared with receipts of $166.4 million in December of last year, a 10.2 percent decline. December is a significant month for Corporate income tax collections as quarterly estimated payments are due for most corporations.
- Collections of wills, suits, deeds, and contracts – mainly recordation tax collections – were $33.3 million in December, compared with $28.8 million in December of last year for growth of 15.6 percent.
- Finally, collections of taxes on insurance premiums were $87.4 million in December, compared with $75.5 million in December 2014.
To view the full revenue report list click here.
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