Sept. Va. General Fund revenue increases 7.6%
Increase driven by payroll withholding, corporate, recordation tax collection growth
Virginia’s General Fund revenue for September increased 7.6% compared to September 2019, Gov. Ralph Northam announced Wednesday.
The increase was driven by growth in payroll withholding and corporate and recordation tax collections, according to the governor’s statement.
“Virginia’s General Fund revenues are increasing, and we have been able to avoid the major revenue shocks that other states are experiencing because of the ongoing pandemic,” Northam said in a statement. “This is the result of the proactive measures we have taken to mitigate the impacts of the virus on our economy and put the commonwealth on the path toward a strong recovery.”
Payroll withholding taxes grew 11.4% during September, and the first nonwithholding estimated payment for fiscal year 2021 was due in September. Nonwithholding collections grew 2.4% compared to last year, but sales and use tax collections (reflecting August sales) fell 3.2% in September.
Corporate income tax collections increased 17.4% during September compared to last year and collections of wills, suits, deeds and contracts (mainly recordation tax collections) were $56.6 million — $20 million more than the same time last year.
“September completes the first quarter of fiscal year 2021 and is a significant month for revenue collections,” Secretary of Finance Aubrey Layne said in a statement. “Overall, this quarter’s revenue performance confirms that we took a measured and prudent path in the updated Interim Forecast released in August.”
Ahead of a forecasted 1.8% decrease, total revenue collections rose 9.9% on a fiscal year-to-date basis. Payroll withholding tax collections (which comprise 63% of General Fund revenues) increased 2.4%, consistent with the annual estimate. Nonwithholding collections were $982.4 million (compared to $617.6 million during the same period last year) and sales tax collections (16% of General Fund revenues) increased 7.5% through September. Corporate income tax collections rose 36.1% from the same period last year and collections of wills, suits, deeds and contracts increased by 35.9% in the first quarter.