Gov. Ralph Northam announced today that September General Fund revenue increased 4.0 percent from the previous year—largely due to payroll withholding taxes, nonwithholding, and sales tax collections.
The governor also stated that September completes the first quarter of fiscal year 2019 and is a significant month for revenue collections. Estimated payments from individuals, corporations, and insurance companies are all due in September, along with regular monthly collections in withholding, sales taxes, and other sources.
“The positive trends in this report indicate that our approach to growing and diversifying Virginia’s economy is working,” said Gov. Northam. “We have worked to strengthen our reserves, and as we move into Virginia’s next budget period, I’m committed to managing our revenues to continue our progress and ensure that our Commonwealth can sustain long-term economic growth for years to come.”
Payroll withholding grew 3.6 percent in September. September is a significant month for collections in nonwithholding, since the first estimated payment for fiscal year 2019 is due. Collections in nonwithholding grew 15.4 percent in September from last year. Collections of sales and use taxes, reflecting August sales, grew 7.5 percent in September. As with nonwithholding, September is a significant month in corporate income tax collections, since the first estimated payment for the fiscal year is due in September. Collections of corporate income tax decreased 13.3 percent in September from September of last year. Finally, collections of wills, suits, deeds, and contracts—mainly recordation tax collections—were $27.1 million in September, compared with $32.4 million in September of last year.
On a fiscal year-to-date basis, total revenue collections rose 2.7 percent, well ahead of the annual forecast of a 1.5 percent increase. On a fiscal year-to-date basis, collections of payroll withholding taxes—64 percent of General Fund revenues—increased 1.1 percent, however adjusting for $120 million due to a timing issue it would have increased 5.3 percent fiscal-year-to-date. Year-to-date nonwithholding collections were $530.3 million compared with $463.8 million in the same period last year, increasing by 14.4 percent, ahead of the annual estimate of a 3.0 percent decline. Sales tax collections—18 percent of General Fund revenues—increased 7.5 percent through September, ahead of the annual forecast calling for a 2.5 percent increase. Through the first quarter of the fiscal year, corporate income tax collections fell 10.0 percent from the same period last year, behind the annual estimate of a 5.8 percent increase.
To view the full report, click here.
Share
Contributors
