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RICHMOND—Governor Ralph Northam today announced that May revenue collections increased 22.5 percent from a year ago. On a fiscal year-to-date basis, total revenue collections rose 7.9 percent, ahead of the annual forecast of 3.3 percent growth. Approximately $450 million of the additional revenue is needed to fund the Taxpayer Relief Fund.
“I am encouraged by these strong results in payroll withholding and sales tax collections, which continue to show that the Virginia economy is still growing and creating good-paying jobs,” Governor Northam said. “As we approach the end of the fiscal year, my team and I will remain focused on building on the gains we have made to ensure economic stability and long-term positive growth in the Commonwealth.”
May is a significant month for revenue collections. Individual nonwithholding payments are due May 1; nonwithholding payments posted a 55.1 percent gain in May. Due to strong non-wage income growth and the effects of the federal Tax Cuts and Jobs Act, a strong gain was expected. In addition, withholding, sales, and recordation tax collections all posted solid growth for the month while refunds fell. Collections of payroll withholding taxes rose 5.7 percent in May. Collections of sales and use taxes, reflecting April sales, rose 9.7 percent in May. Collections of wills, suits, deeds, and contracts—mainly recordation tax collections—were $42.0 million in May, compared with $36.9 million in May of last year for an increase of 13.8 percent.
On a year-to-date basis, collections of payroll withholding taxes—64 percent of General Fund revenues—increased 3.9 percent, ahead of the annual forecast of 3.8 percent growth. Sales tax collections advanced 4.0 percent on a fiscal year-to-date basis, above the annual forecast of 3.7 percent growth. Individual nonwithholding collections—17 percent of the General Fund—have increased 14.4 percent on a year-to-date basis, above the annual estimate. On a fiscal year-to-date basis, total revenue collections rose 7.9 percent in May ahead of the annual forecast of 3.3 percent growth. Collections in June must total $1.7 billion to attain the forecast, collections in June of last year were $2.4 billion.
To view the full report, click here.
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