Virginia revenue collections up in January
Governor Terry McAuliffe announced today that January General Fund revenues rose 7.4 percent from the previous January. On a fiscal year-to-date basis, total revenue collections rose 4.6 percent through January, ahead of the revised annual forecast of 2.9 percent growth.
“Although we are slightly ahead of the forecast in payroll withholding collections, about 43 percent of the total general fund estimate remains to be collected,” said Governor McAuliffe. “Since 2000, the Commonwealth has collected about 57.1 percent of fiscal year collections through January. As of today, we have collected 57.0 percent of the revenue estimate I released in December with my budget amendments. Even though there is still plenty of time left on the fiscal year clock, the good news is that we are above the forecast at this point. We continue to be cautiously optimistic about revenue collections.”
January is a significant month for revenue collections. Besides the normal monthly payroll withholding and sales tax collections, estimated payments from individuals are due in January.
The growth in January was due to payroll withholding and sales tax collections. Collections of payroll withholding taxes grew 8.0 percent for the month, with one more deposit day than January of last year. Collections of sales and use taxes, reflecting December sales, rose 6.3 percent in January.
Also, December and January are significant months for collections of nonwithholding and receipts can be distorted by the timing of payments. Taxpayers had until January 17 to submit their fourth estimated payment for tax year 2016 and some of these payments are received in December. Receipts of nonwithholding for the two-month period rose 1.8 percent from last year.
Year-to-date, withholding collections are 5.0 percent ahead of the same period last year, above the revised annual estimate of 3.6 percent growth. On a year-to-date basis, sales tax collections have risen 0.9 percent, trailing the annual estimate of 2.7 percent growth. Nonwithholding collections for the first seven months of the fiscal year rose by 1.2 percent, ahead of the annual estimate of a 0.7 percent decline.
Click here to read full January report: finance.virginia.gov/media/8695/january-2017-revenue-letter-2-13-17.pdf.