“Even though February is not a significant month for state revenue collections, continued growth is a great sign that our economy is continuing to build momentum,” said Governor McAuliffe. “These are encouraging signs, but we cannot let our guard down now. Increasing uncertainty and dysfunction in Washington pose a real threat to Virginia’s economic health that we must mitigate by continuing to create new jobs and economic activity for families in every corner of the Commonwealth.”
Collections of payroll withholding taxes rose 5.0 percent in February, despite one less deposit day than February of last year. Collections of sales and use taxes reflecting January sales rose 5.3 percent in February. As the individual income tax filing season enters into full swing, the Department of Taxation issued $429.5 million in individual refunds in February compared with $396.0 million last year.
On a year-to-date basis, collections of payroll withholding taxes – 63 percent of General Fund revenues — increased 5.0 percent, ahead of the annual forecast of 3.6 percent growth. Sales tax collections – 18 percent of General Fund revenues – increased 1.4 percent through February, behind the annual forecast calling for a 2.7 percent increase. Total revenues rose 4.5 percent through February, ahead of the annual forecast of 2.9 percent growth.
Click here to view February Revenue Letter: finance.virginia.gov/key-documents/master-reports-list.