Virginia posts 0.8% revenue increase in December
Gov. Bob McDonnell announced Friday that December 2013 revenue collections for the Commonwealth of Virginia increased by 0.8 percent from December 2012.
On a year-to-date basis, total revenue collections rose 0.7 percent through December, lagging the annual forecast of 1.7 percent growth. Adjusting for the accelerated sales tax program and the 0.125 percent sales tax transfer required by last session’s historic transportation bill, total revenues grew 1.7 percent through December, trailing the adjusted forecast of 2.9 percent growth.
The increase in December revenue was driven by solid growth in collections of individual withholding and nonwitholding partially offset by an increase in refunds and declines in sales, corporate income tax, and recordation taxes. Individual withholding rose 3.1 percent. Year-to-date collections of individual nonwithholding through the first half of the fiscal year rose by 12.4 percent, well ahead of the annual estimate of a 6.3 percent increase. At the same time, sales and use taxes, reflecting sales made in November, fell 4.3 percent in December.
Because a number of factors can influence the flow of payments and monthly growth rates this time of year, December and January receipts must be considered together to get a clear picture of revenue growth.
“Over the last four years we have both projected revenue growth and budgeted conservatively,” Gov. McDonnell said. “In doing so, we have helped put Virginia in a more sound financial position for the future. Virginia’s economy continues to improve. Over the last four years we have worked in a bipartisan fashion to put in place policies that strengthen that give our private sector job-creators the tools they need to create jobs and opportunities for all Virginians.
“This approach has worked. Since the beginning of this Administration 177,300 net new jobs have been created. And, our unemployment rate has fallen two full percentage points, from 7.4% to 5.4%. I want to commend the great work of Virginia’s first chief jobs creation officer, Lieutenant Governor Bill Bolling, and the members of the General Assembly for putting in place pro-growth policies that have helped the Commonwealth emerge as an economic leader during tough fiscal times.”
The December revenue numbers are available at this link: www.finance.virginia.