August 2018 General Fund revenue collections up 4.5% from previous year

RICHMOND—Governor Northam announced today that August General Fund revenue of $1.446 million increased 4.5 percent from the previous year. August is not a significant month for revenue collections.

“The positive revenue growth in this report is a clear sign that our economy is on the right track and our Commonwealth remains in a strong financial position,” said Governor Northam. “While this progress is encouraging, we cannot let up now in our efforts to grow and diversify Virginia’s economy. My administration will stay focused on bringing jobs and opportunity to Virginia citizens in every part of the Commonwealth.”

Collections of payroll withholding taxes increased 5.1 percent in August. Collections of sales and use taxes, reflecting July sales, grew 7.5 percent in August. Recordation taxes from real estate transactions declined by 1.4 percent.

September collections will complete the first quarter of fiscal year 2019 and provide a clearer assessment of revenue growth. The first estimated payments from individuals, corporations and insurance companies are due in September.

On a year-to-date basis, collections of payroll withholding taxes—64 percent of General Fund revenues—were flat, trailing the annual estimate of 2.6 percent growth, as a timing anomaly pushed some July payments into June. Sales tax collections—18 percent of General Fund revenues—have grown by 7.5 percent year-to-date, ahead of the forecast of 2.5 percent growth. On a fiscal year-to-date basis, total revenue collections rose 1.9 percent in August, above the annual forecast of 1.5 percent growth.

To view the full report, click here.