Virginia’s revenue dips in October
Virginia’s revenue dropped 5.4 percent in October compared to October 2012.
The decrease was driven by declines in corporate, sales and recordation taxes and an increased in individual refunds. Collections of payroll withholding taxes grew by only 0.5 percent in October, which was likely weak because of the federal government shutdown.
The commonwealth is home to more than 170,000 federal employees. Sales and use tax receipts fell 1.7 percent, which reflects sales in September.
So any impact of the shutdown on sales taxes won’t be reflected until November revenues. On a year-to-date basis, total revenue collections rose 0.6 percent through October, trailing the annual forecast of 1.5 percent growth.
“Despite our work in the commonwealth, we increasingly face headwinds that while not of our making, are having a detrimental impact on our people and our economy,” Gov. Bob McDonnell said in a statement. “The federal government continues to fail at the most basic of functions, including most recently failing at just the simple act of remaining open.”