Total Virginia General Fund revenues rose 41.9 percent in April, representing the largest monthly increase in the 21st century.
In addition to regular collections of withholding and sales taxes, final payments for the previous tax year and the first estimated payment for the current tax year are due from corporations on April 15. This is the first revenue report that compares results with last year when the coronavirus pandemic took hold and economic shutdowns began.
“Virginia is posting the largest monthly revenue increase in the 21st century this month, in sharp contrast with many other states,” Gov. Ralph Northam said. “Make no mistake—this is the result of strong fiscal management and Virginians doing the right things to put this pandemic behind us. People are getting back to work, businesses are investing, and we expect this surge to continue in the months ahead as our economy returns to full strength.”
Collections of payroll withholding taxes increased 3.4 percent for the month. Collections of sales and use taxes, reflecting March sales, grew 24.8 percent in April. More than 80 percent of monthly increase is due to a return to normal filing dates for most corporate and individual taxpayers.
“As always, the fourth quarter collections will be highly dependent on individual estimated and final payments,” said Secretary of Finance Aubrey Layne. “Because of the extension of the filing date last year for all corporate and individual tax payment dates in April and May to June 1, the entire fourth quarter of fiscal year 2020–2021, April through June, will be needed to accurately assess revenue performance this year.”
On a year-to-date basis, collections of payroll withholding taxes—62 percent of General Fund revenues—are up 3.7 percent ahead of the 2.7 percent estimate. Sales tax collections—17 percent of General Fund revenues—increased 8.7 percent and are ahead of the 4.7 percent annual estimate.
On a fiscal year-to-date basis, total revenue collections have increased 12.8 percent through April, above the annual forecast of 2.7 percent growth.
The full report is available here.
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