State revenues rose 7.6 percent in December, driven by solid growth in payroll withholding, sales and use taxes, and recordation tax collections.
On a fiscal year-to-date basis, total revenue collections rose 8.3 percent through December, well ahead of the annual forecast of 1.9 percent growth.
“This continued strong revenue performance gives us confidence that we can achieve the forward-looking agenda I have laid out, while also putting money into our cash reserves,” Gov. Ralph Northam said Monday in a news release. “As the General Assembly session gets underway in Richmond, we have a unique opportunity to invest in our shared future, grow and diversify our economic base, and continue building on our progress.”
Collections of payroll withholding taxes rose 9.2 percent in December, with an additional deposit day compared with last year. Collections of sales and use taxes, reflecting November sales, rose 5.1 percent in December. November represents the beginning of the holiday shopping season and this year had fewer shopping days after Thanksgiving than last year.
“A clearer assessment of the season will be possible after receiving December sales tax payments due in January,” said Secretary of Finance Aubrey Layne. “January nonwithholding payments will also give us a better indication of taxpayer behavior for calendar 2019 tax returns.”
Collections of wills, suits, deeds, and contracts—mainly recordation tax collections—were $40.4 million in December, compared with $32.0 million in December of last year.
December is a significant month for corporate income tax collections as quarterly estimated payments are due for most corporations and refunds from extension returns are processed. With the main refunding season completed and the first two estimated payments received, collections of corporate income taxes grew 19.2 percent on a year-to-date basis, compared with the forecast of 2.2 percent growth.
Fiscal-year-to-date, payroll withholding collections have grown 5.8 percent, well ahead of the annual estimate of 4.7 percent growth. Collections of sales and use taxes have risen 8.1 percent, ahead of the annual estimate of 6.0 percent growth and recordation tax collections are up 29.0 percent, far ahead of the annual forecast of 13.2 percent growth. On a fiscal year-to-date basis, total revenue collections rose 8.3 percent through December, well ahead of the annual forecast of 1.9 percent growth.
The full report is available here.
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