August 2017 General Fund Revenue Collections Up 1.1% From The Previous Year
~Payroll withholding accounted for a majority of the gain~
RICHMOND – Governor McAuliffe announced today that August general fund revenue increased 1.1 percent from the previous year. On a fiscal year-to-date basis, total revenue collections rose 3.0 percent above the annual forecast of 2.7 percent growth. Collections of payroll withholding taxes increased 0.8 percent in August. Collections of sales and use taxes, reflecting July sales, fell 1.3 percent in August. Recordation taxes from real estate transactions also declined, falling by 3.4 percent.
Speaking to August revenue collections, Governor McAuliffe stated, “The 1.1 percent revenue growth we saw in the month of August is an impressive result given that it tops the 12 percent increase we experienced in August a year ago. Payroll withholding, which constitutes two-thirds of general fund revenue collections, has increased by 3.5 percent since the beginning of the fiscal year and continues to run ahead of forecast, as it did last fiscal year. These revenue numbers are a clear indication that Virginia’s economy is growing and creating jobs, but we must continue to work together to maintain the momentum we have built over the past four years.”
On a year-to-date basis, collections of payroll withholding taxes – 64 percent of general fund revenues – increased 3.5 percent, ahead of the annual forecast of 1.8 percent growth. Sales tax collections – 18 percent of general fund revenues – have grown by 1.1 percent year-to-date, trailing the forecast of 2.8 percent growth.
September collections will complete the first quarter of fiscal year 2018 and provide a clearer assessment of revenue growth. The first estimated payments from individuals, corporations and insurance companies are due in September.
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