October 2015 General Fund Revenue Collections Down 5.1% From The Previous Year And Fiscal-Year-To-Date Collections Up 0.5%
~One less deposit day for Payroll Withholding and Corporate Refunds Accounted for the Decline~
RICHMOND - Governor McAuliffe announced today that October General Fund revenue fell 5.1% from the previous year. One less deposit day for payroll withholding compared with last year and corporate refunding activity contributed to the decrease. On a fiscal year-to-date basis, total revenue collections rose 0.5 percent, ahead of the annual forecast of a 0.1 percent decline.
“While this month’s revenue decline is mainly reflective of one less collection day and an uptick in corporate refunds, I am encouraged by increases in our sales and recordation taxes, which indicate that Virginians are buying homes and products,” said Governor McAuliffe. “I am proud of the success we are having building a new Virginia economy and I look forward to releasing a budget and legislative agenda that will strengthen those efforts.”
October is not a significant month for revenue collections. Regular monthly collections are due in withholding, sales taxes and most minor sources. Corporate and individual income tax extension return processing begins in October as corporate extension returns are due October 15 and individual extension returns are due November 1.
With one less deposit day compared with last year, collections of payroll withholding taxes fell 5.4 percent in October. Collections of sales and use taxes, reflecting September sales, rose 4.2 percent in October. Collections of corporate income tax were negative for the month due largely to significant refunding activity. Finally, collections of wills, suits, deeds, and contracts – mainly recordation tax collections – were $31.8 million in October, compared with $28.9 million in October of last year.
On a year-to-date basis collections of payroll withholding taxes – 64 percent of General Fund revenues -- increased 1.7 percent, behind the annual forecast of 2.1 percent growth. Sales tax collections - 19 percent of General Fund revenues – decreased 2.5 percent through October, behind the annual forecast calling for a 2.7 percent increase. However, adjusting for the accelerated sales tax program, sales tax revenues are up 4.4 percent as compared to the economic base forecast of 2.7 percent. Through the first five months of the fiscal year, corporate income tax collections have fallen 28.0 percent from the same period last year, behind the annual estimate of a 1.3 percent decline. Adjusting for the accelerated sales tax program, total revenues are up 1.8 percent through October, ahead of the adjusted forecast.
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