September 2014 General Fund Revenue Collections Up 5.3% From Previous Year Fiscal-Year-To-Date Collections up 6.7%
~All Major Sources Accounted for the Gain~
Today, Governor McAuliffe announced that the September General Fund revenue increased 5.3% from the previous year with all major sources contributing to the increase. This is the first time revenues have increased for three consecutive months since April-June of 2013. The Governor also stated that September completes the first quarter of fiscal year 2015 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.
“I am pleased to see that our revenue collections are up, however, we must remain cautious because the Commonwealth has only collected about one-quarter of its general fund revenue estimate to date. My administration will continue to take a prudent approach to help ensure that Virginia remains fiscally strong,” said Governor McAuliffe.
On a fiscal year-to-date basis, total revenue collections rose 6.7%, well ahead of the revised annual forecast of 2.9% growth. The main drivers of the revenue increase were the individual income tax, the corporate income tax, and sales tax. With an additional deposit day compared with last year, collections of payroll withholding taxes rose 8.3% in September. September is a significant month for collections in non-withholding, since the first estimated payment for fiscal year 2015 is due. Collections rose 2.8% in September from last year. Collections of sales and use taxes, reflecting August sales, rose 3.5% in September. As with non-withholding, 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 grew 6.9% in September from September of last year. Finally, collections of wills, suits, deeds, and contracts – mainly recordation tax collections – were $26.4 million in September, compared with $25.9 million in September of last year. The 1.9% growth in September ended 13 consecutive months of negative growth.
On a year-to-date basis, collections of payroll withholding taxes – 64% of General Fund revenues -- increased 6.3%, ahead of the revised annual forecast of 2.7% growth. Year-to-date non-withholding collections were $427.7 million compared with $372.8 million in the same period last year, rising by 14.7% and ahead of the annual estimate of 6.3% growth. Sales tax collections – 19% of General Fund revenues – increased 4.6% through September, ahead of the annual forecast calling for a 4.4% increase. Through the first quarter of the fiscal year, corporate income tax collections have grown 12.4% from the same period last year, ahead of the annual estimate of a 0.9% decline.
Read the full report here.