~Payroll Withholding Accounted for the Monthly Decline~
RICHMOND – Governor Northam announced today that, although March is not a significant month for collections, revenue decreased 3.5 percent as payroll withholding had one less deposit day than a year ago. On a fiscal year-to-date basis, total revenue collections rose 5.2 percent, ahead of the annual forecast of 3.4 percent growth.
“As we enter the fourth quarter of the fiscal year, we are above target. As always, the fourth quarter collections will be highly dependent on individual estimated and final payments due May 1st and June 15th,” said Governor Northam. “We are on a positive trend, but as we deliberate on a budget, we have a responsibility to be fiscally prudent and make use of every available resources to shore up our budget and strengthen our economy. That is why I am encouraged by the progress we are making toward a budget that expands health coverage, bolsters reserves and supports key priorities like education and workforce development.”
Collections of payroll withholding taxes fell 4.7 percent in March. Collections of sales and use taxes, reflecting February sales, rose 0.4 percent in March. Wills, suits, deeds, and contracts rose 6.1 percent in March.
On a year-to-date basis, collections of payroll withholding taxes – 64 percent of General Fund revenues — increased 4.2 percent ahead of the same period last year, and are above the estimate of 3.5 percent growth. Sales tax collections – 18 percent of General Fund revenues – increased 2.9 percent, slightly trailing the annual estimate of 3.0 percent growth. On a fiscal year-to-date basis, total revenue collections rose 5.2 percent in March, ahead of the annual forecast of 3.4 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: http://finance.virginia.gov/key-documents/master-reports-list/