Gov. Terry McAuliffe announced today that May revenue collections increased 5.8 percent from a year ago, and that year-to-date revenue collections are up 7.3 percent from last year, ahead of the revised annual forecast of 4.7 percent growth contained in the budget bill.
May is a significant month for revenue collections. In addition to collections of withholding and sales taxes, estimated and final payments for individuals are due May 1.
Speaking from Europe where he is on a marketing mission to bring new jobs and investment to Virginia, Governor McAuliffe said, “Our Commonwealth’s continued solid revenue performance is more evidence that our efforts to build a new Virginia economy are paying off. While this is great progress from where we were just a year ago, there is much work yet to be done to diversify our economy and better insulate Virginia from federal spending cuts and poor congressional decision-making. If we are going to build on this momentum we must work together to bring new jobs and commerce to the Commonwealth, strengthen our education and workforce development systems and use every taxpayer dollar wisely to develop the infrastructure our businesses and families need to succeed.”
With respect to the details of May general fund revenue collections, payroll withholding taxes rose 3.5 percent for the month even though there was one less deposit day in May this year than last year. Collections of sales and use taxes, reflecting April sales, rose 1.2 percent in May. A total of $513.8 million in nonwithholding was collected in May compared with $433.2 million in May of last year, an increase of 18.6 percent. Combined April and May nonwithholding collections were up 19.0 percent. May is a significant month for collections in nonwithholding as final payments for tax year 2014 and the first estimated payment for tax year 2015 are both due May 1.
Collections of taxes on wills, suits, deeds, and contracts – mainly recordation tax collections – were $32.6 million in May, compared with $25.7 million in May of last year for growth of 26.6 percent. Collections in this source have increased by double-digits over the last six months.
On a year-to-date basis, collections of payroll withholding taxes – 63 percent of General Fund revenues — increased 4.6 percent, ahead of the revised annual forecast of 4.0 percent growth. Individual nonwithholding collections – 16 percent of the General Fund – have increased 19.6 percent on a year-to-date basis, ahead of the same period last year and ahead of the estimate of 7.9 percent annual growth. Sales tax collections – 19 percent of General Fund revenues – increased 3.9 percent through May. Adjusting for the accelerated sales tax program and the 0.1 percent sales tax transfer to transportation required by the provisions of HB 2313, total revenues rose 7.3 percent through April, ahead of the adjusted forecast of 4.5 percent growth.
To view the full revenue report click here.
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