Virginia government revenue collections for September, the final month in the first quarter of fiscal year 2023, exceeded budget estimates, according to a release from the Office of Gov. Glenn Youngkin on Friday.
September revenues reflected the nearly $900 million of tax rebates delivered to Virginians in recent weeks as a result of Youngkin’s first budget. In addition to the tax rebate, year-to-date revenues reflect the repeal of the Accelerated Sales Tax, which took effect in June.
Adjusting for these tax reductions, first quarter general fund revenues were up 7.6 percent, and 10.7 percent in September, year-over-year.
For the month, payroll withholding increased by 0.3 percent (11.0 percent adjustment for the timing of deposit days). Wage growth and a strong labor market drove growth in payroll withholding.
There were 128,000 more Virginians employed in August 2022 than there were in August 2021, an increase of 3.1 percent year-over-year. Virginia, however, has yet to recover more than 118,000 jobs that were lost during the pandemic (now at 97.2 percent of pre-pandemic levels) while our key competitor states have all exceeded pre-pandemic employment levels.
The full September 2022 revenue report is available here.
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Chris Graham
