Governor McAuliffe Announces March 2017 General Fund Revenue Collections Up 5.7% From the Previous Year and Fiscal-Year-To-Date Collections are Up 4.6%
~Monthly Payroll Withholding Hits a New High and Accounts for Most of the Gain~
RICHMOND – Governor McAuliffe announced today that general fund revenue collections for March increased 5.7 percent as payroll withholding increased 6.8 percent for the month and sales tax collections rose 2.8 percent. On a fiscal year-to-date basis, total revenue collections rose 4.6 percent, ahead of the annual forecast of the 2.9 percent growth.
In making this announcement, Governor McAuliffe said, “Virginia’s strong economy and job market are continuing to drive revenue collections into positive territory. As a result, we enter the fourth quarter of the fiscal year with a cushion to attain the revenue forecast in the budget. We are making progress building a new Virginia economy, but factors like the uncertainty and dysfunction we are seeing out of Washington mean we cannot afford to let up now.”
The Governor added, “Revenue collections for the fourth quarter will be highly dependent on individual income tax estimated and final payments due May 2nd and June 15th. While these payments have been volatile in the past, we worked with the General Assembly money committees to adopt a conservative forecast for these collections which should prove helpful in attaining the overall revenue forecast the fiscal year.”
Collections of payroll withholding taxes for March were $1.184 billion, the largest monthly amount ever recorded, topping last year’s record setting March by $76 million.
On a year-to-date basis, collections of payroll withholding taxes – 63 percent of General Fund revenues -- increased 5.3 percent ahead of the same period last year, ahead of the estimate of 3.6 percent growth. Sales tax collections - 18 percent of General Fund revenues – increased 1.5 percent, trailing the annual estimate of 2.7 percent growth.
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.
To view the full revenue report, click here.