January 2016 General Fund Revenue Collections Up 6.6 percent from the Previous Year and Fiscal-Year-To-Date Collections Up 2.4 percent
~Payroll Withholding, Nonwithholding and Lower Refunds Accounted for the Gain~
RICHMOND - Governor McAuliffe announced today that January general fund revenues rose 6.6 percent from the previous year. The growth was due to payroll withholding, individual estimated payments and fewer individual refunds being issued. On a fiscal year-to-date basis, total revenue collections rose 2.4 percent through January, below the revised annual forecast of 3.2 percent growth.
“January was a solid month for general fund collections, a demonstration that our economy is creating jobs and building momentum,” said Governor McAuliffe. “I am particularly pleased by the emphatic strength we are seeing in income collections, a reminder of our Commonwealth’s superior workforce and our innovative businesses, as well as an endorsement of the hard work we have done to build a new Virginia economy. We must press forward with strategic investments in education, workforce, research and infrastructure to maximize the opportunity that is clearly within our reach.”
The Governor noted that January is a significant month for revenue collections. Individual estimated payments, sales taxes on December sales, and corporate income taxes from large retailers are due in January.
Below are the details of general fund revenue collections for January:
- Collections of payroll withholding taxes grew 4.7 percent for the month, with one less deposit day than January of last year. Year-to-date, withholding collections are 2.6 percent ahead of the same period last year, trailing the revised annual estimate of 4.1 percent growth.
- Receipts of nonwithholding for the two-month period rose 5.8 percent from last year. December and January are significant months for collections of nonwithholding receipts. Taxpayers had until January 19 to submit their fourth estimated payment for tax year 2015, and some of these payments are received in December. Nonwithholding collections for the first seven months of the fiscal year rose by 5.8 percent, ahead of the annual estimate of 1.9 percent growth.
- Collections of sales and use taxes, reflecting December sales, fell 0.9 percent in January. On a year-to-date basis, sales tax collections have risen 0.8 percent, trailing the annual estimate of 5.0 percent growth.
- Corporate income tax collections rose 2.3 percent in January but year-to-date have fallen 18.7 percent from the same period last year, trailing the revised annual estimate of a 9.5 percent decline.
- Finally, on a fiscal year-to-date basis, total revenue collections rose 2.4 percent through December, versus the revised annual forecast of 3.2 percent growth.
- To view the full revenue report, click here.