Virginia’s general fund revenues fell 0.7 percent in September compared to a year ago, primarily because of lower corporate income tax collections.
The corporate income tax fell 17.7 percent in September because of lower payments by large corporations. September is a significant month for corporate income tax collections because the first estimated payment for the fiscal year is due.
Through September, corporate tax collections are down 11.8 percent from the same period a year ago, behind an estimated 3 percent increase.
Individual income tax rose 0.2 percent over last September, but the budget assumed a 2.8 percent growth. Sales tax collections grew 3.6 percent during the month.
On a year-to-date basis, total revenue collections rose 1.3 percent through September, trailing the annual forecast of 2.9 percent growth.
“September’s decline in revenue is a stark reminder of the tenuous recovery our nation and our Commonwealth is undergoing,” Gov. Bob McDonnell said in a statement. “While Virginia continues to fare better than most other states in this difficult economy, we must remain vigilant in our efforts to encourage business investment and job growth, and foster economic activity whenever possible.”
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