April 2015 General Fund Revenue Collections Up 10.2% From the Previous Year and Fiscal-Year-To-Date Collections Up 7.5%
~Receipts of Withholding and Nonwithholding Drove the Gain as Virginia’s Economy Strengthens~
Governor McAuliffe announced today that April revenue collections increased 10.2 percent. On a fiscal year-to-date basis, total revenue collections rose 7.5 percent, ahead of the revised annual forecast of 4.7 percent growth contained in the budget bill recently enacted in the 2015 Session of the General Assembly.
Noting the growth in revenue, Governor McAuliffe said, “April was a strong month across virtually all of our major revenue sources. The positive trend we have sustained over recent months puts Virginia in a solid position to build our new Virginia economy. I’m particularly pleased by the positive results we’re seeing from our housing market, small business owners and investors. These are all great signs because these trends put money back into the economy to create jobs and opportunities for all Virginians.”
With respect to personal income taxes, collections of payroll withholding taxes rose 3.5 percent in April even though the month had one fewer deposit day compared with last year. In addition, April is a significant month for individual nonwitholding, as final payments for tax year 2014 and the first estimated payment for tax year 2015 are both due May 1. A total of $838.3 million in nonwithholding was collected in April, compared with $703.1 million in April of last year – an increase of 19.2 percent.
Also in April, corporations made their first estimated payment for tax year 2015, and made either a final or extension payment for tax year 2014. Collections of corporate income taxes were $145.5 million in April, compared with receipts of $146.5 million a year ago – a 0.7 percent decrease.However, year-to-date, collections are up 14.4 percent, versus the annual forecast of 11.0 percent.
Collections of sales and use taxes, reflecting March sales, rose 5.9 percent in April. Collections of wills, suits, deeds, and contracts – mainly recordation tax collections – were $31.1 million in April, compared with $24.7 million in April of last year for growth of 25.9 percent. Collections in the latter source have increased at double-digit rates for five consecutive months.
On a year-to-date basis, collections of payroll withholding taxes – 63 percent of General Fund revenues -- increased 4.7 percent, ahead of the revised annual forecast of 4.0 percent growth. Individual nonwitholding collections – 16 percent of the General Fund – have increased 19.8 percent on a year-to-date basis, ahead of the same period last, andahead of the estimate of 7.9 percent annual growth. Sales tax collections - 19 percent of General Fund revenues – increased 4.2 percent through April. Adjusting for policy changes associated with the accelerated sales tax program and the 0.1 percent sales tax transfer to transportation required by the provisions of HB 2313, total revenues rose 7.4 percent through April, ahead of the adjusted forecast of 4.5 percent growth.
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