August 2016 General Fund Revenue Collections Up 12.0 Percent from the Previous Year
~Payroll withholding accounted for all of the gain~
RICHMOND – Governor McAuliffe announced today that August General Fund revenue increased 12.0 percent from the previous year with two additional deposit days boosting receipts in withholding and recordation taxes. The Governor welcomed the good news but cautioned that August is not a significant month for revenue collections. September collections will complete the first quarter of fiscal year 2017 and provide a clearer assessment of revenue growth. The first estimated payments from individuals, corporations and insurance companies are due in September.
Speaking to the trend in collections, Governor McAuliffe said, “I am pleased that we have started the new fiscal year off on a positive note with two months of above average collections. However, we still have work to do to grow and diversify our economy to ensure that our revenue picture continues to improve regardless of external forces like sequestration. I am committed to working with the General Assembly to respond to the shortfall we are facing in the current budget while protecting investments that are essential to the foundation we are building for a new Virginia economy.”
Collections of payroll withholding taxes increased 17.7 percent in August. Collections of sales and use taxes, reflecting July sales, rose 1.1 percent in August. Recordation taxes from real estate transactions were up 24.9 percent.
On a year-to-date basis, collections of payroll withholding taxes – 64 percent of General Fund revenues – increased 9.5 percent, ahead of the annual forecast of 3.0 percent growth. Adjusting for the accelerated sales tax program, sales tax collections – 18 percent of General Fund revenues – have grown by 2.7 percent year-to-date, trailing the forecast of 3.7 percent growth. On a fiscal year-to-date basis, total revenue collections rose 8.1 percent in August, ahead of the annual forecast of 1.7 percent growth.
To view the full revenue report list, click here.