Virginia posts 2.2 percent revenue increase in April
Gov. Bob McDonnell announced today that April revenue collections increased by 2.2 percent over the prior year. April is a significant month for revenue collections, because, in addition to regular revenue collections, final payments for tax year 2012 and the first estimated tax payment for tax year 2013 were due from corporations April 15. On a year-to-date basis, total revenue collections rose 4.1 percent through April, ahead of the annual forecast of 3.6 percent growth.
The revenue increase in April was primarily driven by a 5.5 percent increase in net individual income tax collections, which included a 7.0 percent increase in individual income tax withholding tax revenues. Sales tax revenues were flat in April and slightly trail the annual estimate of 4.1 percent. Year-to-date collections of corporate income tax have fallen 8.2 percent, lagging the estimate of a 4.5 percent decline.
Adjusted for the accelerated sales tax program, total state revenues grew 3.8 percent through April, slightly ahead of the forecast of 3.4 percent growth.
“April is a significant month for economic indicators and tax collections,” said Governor McDonnell. “While positive numbers in April make March’s revenue declines look less ominous and speak to our overall economic recovery in Virginia, the trends still dictate the need for a conservative economic approach and caution going forward. We have much more work to do before economic prosperity and security are the norm for all Virginia families. Virginia’s unemployment rate is the lowest in four years, the lowest in the Southeast, and the second-lowest east of the Mississippi, and we have added over 160,900 net new jobs since February 2010. Overall increases in revenue and reductions in unemployment are signs that Virginia’s fiscally responsible management is making a positive impact on our economic recovery. Still, more than 225,000 Virginians are unemployed and the sequester is threatening up to 200,000 additional jobs in Virginia. We have much more work to do to get Virginians back to work and to continue growing our economy.”
The April revenue numbers are available at this link: http://www.finance.virginia.