December revenue collections down from previous year

Governor McAuliffe announced today that December General Fund revenue fell 1.0 percent from December 2015 collections. The drop was largely due to one less payroll deposit day for payroll withholding. On a fiscal year-to-date basis, total revenue collections rose 4.0 percent, ahead of the annual forecast of a 2.9 percent increase.

Speaking about revenue collections, Governor McAuliffe stated, “December revenue collections were in line with expectations given the loss of a payroll deposit day. The fiscal year-to-date numbers are encouraging and continue to progress on a favorable course. Long term we still need to keep our focus on diversifying our economic base and building the New Virginia economy if we want to ensure economic stability and future economic growth.”

Collections of payroll withholding taxes fell 5.8 percent in December. Collections of sales and use taxes, reflecting November sales, rose 10.4 percent for the month. November represents the beginning of the holiday shopping season and a clearer assessment of the season will be possible after receiving December sales tax payments due in January.

Collections of corporate income taxes were $144.9 million in December, compared with receipts of $149.4 million in December of last year, a 3.0 percent decline. December is a significant month for corporate income tax collections as quarterly estimated payments are due for most corporations.

Finally, collections of wills, suits, deeds, and contracts – mainly recordation tax collections – were $35.1 million in December, compared with $33.3 million in December of last year for growth of 5.6 percent.

On a fiscal year-to-date basis, total revenue collections rose 4.0 percent through December, ahead of the revised annual forecast of 2.9 percent growth. Year-to-date, withholding collections are 4.5 percent ahead of the same period last year and ahead of the revised annual estimate of 3.6 percent growth. Sales tax collections have fallen 0.2 percent year to date, trailing the annual estimate of 2.7 percent growth. Corporate income tax collections for the first half of the fiscal year have risen 9.5 percent from the same period last year and are ahead of the annual estimate of a 3.8 percent increase.

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