March 2016 General Fund Revenue Collections Up 7.5% From the Previous Year and Fiscal-Year-To-Date Collections are Up 2.7%
~Both Payroll Withholding and Sales Taxes Accounted for the Gain~
Governor McAuliffe announced today that general fund revenue increased 7.5 percent in March as payroll withholding and sales tax collections increased. On a fiscal year-to-date basis, total revenue collections rose 2.7 percent, behind the annual forecast of the 3.2 percent growth.
“As we enter the fourth quarter of the fiscal year, we believe we are where we need to be to attain the revenue forecast in the budget,” said Governor McAuliffe. “The fourth quarter collections will be highly dependent on individual estimated and final payments due May 2nd and June 15th. Working with the General Assembly money committee’s we reduced the risk of this highly volatile revenue source by adopting a very conservative forecast for nonwitholding income tax collections. This cautious approach, coupled with our ongoing economic growth, should provide a cushion in attaining the overall revenue forecast.”
Collections of payroll withholding taxes rose 10.4 percent in March, with one more deposit day than March of last year. Collections of sales and use taxes, reflecting February sales, rose 8.5 percent in March.
On a year-to-date basis, collections of payroll withholding taxes – 63 percent of General Fund revenues -- increased 3.3 percent ahead of the same period last year, trailing the estimate of 4.1 percent growth. Sales tax collections - 18 percent of General Fund revenues – increased 1.6 percent, trailing the annual estimate of 4.1 percent growth. On a fiscal year-to-date basis, total revenue collections rose 2.7 percent in March, trailing the annual forecast of 3.2 percent growth. Adjusting for the accelerated sales tax program, total revenues rose 3.1 percent through March, close to the 3.3 percent annual forecast.
The last three months of the fiscal year are significant collections months. In addition to estimated and final payments from both corporations and individuals due in April and May, estimated payments are again due in June. Fiscal year 2016 fourth quarter collections must total $5.9 billion to attain the forecast, compared with $5.7 billion collected in the fourth quarter of last year – a 3.5 percent increase.
To view the full revenue report, click here.