Va. General Fund revenue dropped 2.4% in January
Total revenue collections rose 6%, however
Virginia’s General Fund revenue for January 2021 decreased 2.4% compared with January 2020, Gov. Ralph Northam announced Thursday.
Total revenue collections rose 6% through January on a fiscal year-to-date basis, which was well ahead of the 1.2% growth forecast.
“As we work to put this pandemic behind us, we must stay focused on positioning our commonwealth for broad-based and inclusive growth,” Northam said in a statement. “Our revenue picture remains stable, and I am confident that we can strengthen our cash reserves, provide Virginia families and businesses with the relief they need to get back on their feet, and meet our budget priorities, which includes giving our teachers a pay raise.”
Payroll withholding tax collections fell 12.6% during January, while sales and use tax collections (reflecting December 2020 sales) rose 5.6% in January.
“Collections have been strong for the first seven months of the fiscal year, especially in individual estimated payments, sales and use taxes, corporate income tax and recordation taxes,” Secretary of Finance Aubrey Layne said in a statement. “Besides the normal monthly payroll withholding and sales tax collections, estimated payments from individuals are due in January, making it a significant month for revenue collections.”
Corporate income tax collections increased 39.3% during January compared to January 2020, a jump from $29.8 million to $49.3 million.