Governor McAuliffe Announces May 2016 General Fund Revenue Collections Up 6.4% from the Previous Year and Fiscal-Year-to-Date Collections Up 1.9%
~All major sources grew, despite marked weakness in individual withholding and sales tax collections~
RICHMOND – Governor McAuliffe announced today that May revenue collections increased 6.4 percent from a year ago. On a fiscal year-to-date basis, total revenue collections rose 1.9 percent, behind the annual forecast of 3.2 percent growth.
Governor McAuliffe stated “Although collections were positive for the month, payroll withholding and sales tax collections continue to underperform estimates, underscoring the need to continue creating new, high-paying jobs across the Commonwealth. As we near the end of the fiscal year, my team is working to mitigate any potential revenue shortfall by asking state agencies to conserve discretionary funds and implement budget strategies to save money in June for use in the next biennial budget. If we work together, we can offset a potential shortfall while protecting the investments we need to build a new Virginia economy.”
May is a significant month for revenue collections. In addition to collections of withholding and sales taxes, estimated and final payments for individuals are due May 1. Collections of payroll withholding taxes rose 1.4 percent in May. Collections of sales and use taxes, reflecting April sales, rose 1.1 percent in May. May is a significant month for collections in nonwithholding as final payments for tax year 2015 and the first estimated payment for tax year 2016 are both due May 1. A total of $556.6 million in nonwithholding was collected in May compared with $513.8 million in May of last year, an increase of 8.3 percent. Collections of wills, suits, deeds, and contracts – mainly recordation tax collections – were $34.3 million in May, compared with $32.6 million in May of last year for growth of 5.3 percent.
On a year-to-date basis, collections of payroll withholding taxes – 63 percent of General Fund revenues -- increased 2.5 percent, behind the annual forecast of 4.1 percent growth. Individual nonwithholding collections – 17 percent of the General Fund – have increased 1.9 percent on a year-to-date basis, equal to the annual estimate. Adjusting for the accelerated sales tax program, sales tax collections - 18 percent of General Fund revenues – have grown by 2.4 percent year-to-date, trailing the forecast. On a fiscal year-to-date basis, total revenue collections rose 1.9 percent in May trailing the annual forecast of 3.2 percent growth. Collections in June must total $2.4 billion to attain the forecast.
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