State revenue collections increased by 9.5 percent in December over the prior year when adjusted for the December 2009 one-time tax amnesty program. This is the ninth month out of the last 10 in which state revenue collections exceeded the previous year’s amount. It is the second month in a row in which year over year revenue growth was greater than 9 percent.
The revenue increase was primarily driven by withholding (+3.9 percent), corporate income (+3.4 percent) and sales tax (+8.6 percent – adjusted for tax amnesty) collections. Adjusted for the accelerated sales tax program, total state revenues grew 4.1 percent through December, slightly lagging the economic-base forecast of 5.2 percent growth.
“In a tough economy we are beginning to see real signs of progress and recovery,” Gov. Bob McDonnell said of the numbers, before talking down the good news.
“Over 280,000 Virginians are still unemployed. Clearly there is much more work to be done before all Virginians can find the good work they deserve,” said McDonnell, touting initiatives from his administration in higher education and transportation.
“Progress is being made, but we still have a long ways to go before economic prosperity and vitality have truly returned to every corner of the Commonwealth,” McDonnell said.
Edited by Chris Graham. Chris can be reached at [email protected].
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