Governor McAuliffe announced today that September general fund revenue increased 9.7% from September a year ago with payroll withholding and individual nonwithholding contributing to the increase. September completes the first quarter of fiscal year 2016 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.
On a fiscal year-to-date basis, total revenue collections rose 2.4 percent, well ahead of the annual forecast of a 0.1 percent decline. Speaking to the increase, Governor McAuliffe said, “The Virginia economy continues to improve as we have stepped up our efforts on the economic development front over the last year. While I remain cautious about the challenges and risks associated with federal activity in Virginia, it is nice to see positive results from our hard work to attract new businesses to the Commonwealth and to diversify the Virginia economy.”
On the plus side, collections of payroll withholding taxes, with an additional deposit day compared with last year, rose 11.9 percent in September. Collections in nonwithholding, driven by the first estimated payment for fiscal year 2016, rose 23.8 percent in September from last year. Collections of sales and use taxes, reflecting August sales, rose 3.7 percent in September. And, collections of wills, suits, deeds, and contracts – mainly recordation tax collections – were up 11.7 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 fell 15.2 percent in September from September of last year.
On a year-to-date basis, collections of payroll withholding taxes – 64 percent of General Fund revenues -- increased 4.4 percent, ahead of the annual forecast of 2.1 percent growth. Year-to-date nonwithholding collections rose 10.3 percent versus the annual estimate of a 8.4 percent decline. Sales tax collections - 19 percent of General Fund revenues – decreased 5.1 percent through September, behind the annual forecast calling for a 2.7 percent increase. Corporate income tax collections fell 17.0 percent through the first quarter of this fiscal year as compared with the annual estimate of a 1.3 percent decline.
To view the full revenue report click here.