Virginia state revenues up 8.7 percent in January

January General Fund revenues for the Commonwealth of Virginia were up 8.7 percent from the previous January.

Besides the normal monthly payroll withholding and sales tax collections, estimated payments from individuals are due in January. Collections of payroll withholding taxes grew 5.2 percent for the month. Collections of sales and use taxes, reflecting December sales, rose 9.9 percent in January. The combined December and January receipts was 7.7 percent above the same period last year, reflecting the bulk of the holiday shopping season.

December and January also are significant months for collections of nonwithholding, and receipts can be distorted by the timing of payments. Taxpayers had until January 15 to submit their fourth estimated payment for tax year 2019, and some of these payments are received in December. Receipts of nonwithholding for the two-month period of January-December increased 15.2 percent from last year. Collections of corporate income taxes were $29.8 million in January, compared with receipts of $23.2 million in January of last year.

“Our strong economy is generating growing revenues to fund services that Virginians expect, from public schools to salaries for public workers and much more,” Gov. Ralph Northam said. “This growth is encouraging, and we need to continue the economic momentum that enables investments in Virginia’s future.”

On a fiscal year-to-date basis, total revenue collections rose 8.4 percent through January, ahead of the forecasted 1.9 percent growth. Year-to-date, withholding collections are 5.7 percent ahead of the same period last year, above the annual estimate of 4.7 percent growth.

On a year-to-date basis, sales tax collections have risen 8.4 percent, ahead of the annual estimate of 6.0 percent growth. Nonwithholding collections for the first seven months of the fiscal year grew 18.1 percent, ahead of the annual estimate of a 7.7 percent decrease. On a fiscal year-to-date basis, corporate income tax collections rose 19.7 percent through January, ahead of the annual forecast of 2.2 percent growth.

The full report is available here.