RICHMOND—Governor Northam announced today that October general fund revenues rose 10.2 percent in October, driven mainly by solid gains in payroll withholding and individual estimated payments. Regular monthly collections are due in withholding, sales taxes and most minor sources. On a fiscal year-to-date basis, total revenue collections rose 4.5 percent, ahead of the annual forecast of a 1.5 percent increase.
“Our efforts to build the foundation for long-term economic growth are bolstered by this continued trend of positive revenue collections,” said Governor Northam. Whether it’s securing a new Amazon headquarters or supporting local entrepreneurs, Virginia is focused on our work to grow and diversify the economy in every corner of the Commonwealth.”
With an additional deposit day compared with last year, collections of payroll withholding taxes rose 12.8 percent in October. October is not typically a significant month for collections of individual income tax nonwithholding, however payments were up 20.3 percent for the month. Collections of sales and use taxes, reflecting September sales, fell 1.7 percent in October. Finally, collections of wills, suits, deeds, and contracts—mainly recordation tax collections—were $33.3 million in October, compared with $34.0 million in October of last year, a 2.0 percent decrease.
On a year-to-date basis, total revenues are up 4.5 percent through October, well ahead of the annual forecast of 1.5 percent growth. Collections of payroll withholding taxes—64 percent of General Fund revenues—increased 4.1 percent, ahead of the annual forecast of 2.6 percent growth. Sales tax collections—18 percent of General Fund revenues—increased 4.7 percent through October, ahead of the annual forecast calling for a 2.5 percent increase.
The Joint Advisory Board of Economists (JABE) met on October 11 to assess recent economic developments and the economic outlook for the current and next biennium. The Governor’s Advisory Council on Revenue Estimates (GACRE) will meet on November 19 to evaluate both the JABE economic recommendations and revenue collections through October. GACRE members’ recommendations will be incorporated into the general fund revenue forecast to be released on December 18 when the Governor meets with the money committees of the General Assembly to introduce his budget recommendations.
To view the full report, click here.
# # #