May 2018 General Fund Revenue Collections Up 1.4% From the Previous Year and Fiscal-Year-To-Date Collections Up 6.1%
~ Individual withholding collections posted a strong gain ~
RICHMOND—Governor Northam announced today that May revenue collections increased 1.4 percent from a year ago. On a fiscal year-to-date basis, total revenue collections rose 6.1 percent, ahead of the annual forecast of 3.4 percent growth.
“This positive report indicates that we are making great progress in growing Virginia’s economy, and shows that our efforts to lay a solid foundation for long-term economic growth are paying off,” said Governor Northam. “Our primary revenue source, payroll withholding, is strengthening, and we have bolstered Virginia’s financial position by directing additional revenues into our cash reserves. This prudent approach has allowed us to pass a strong budget that expands health care to more Virginians and invests in priorities like education, workforce training, and public safety. As we move forward, my administration will remain focused on building on this success, diversifying our economy and bringing new jobs to every corner of our Commonwealth.”
May is a significant month for revenue collections. In addition to collections of withholding and sales taxes, estimated and final payments for individuals are due May 1. Collections of payroll withholding taxes rose 12.6 percent in May. Collections of sales and use taxes, reflecting April sales, rose 0.8 percent in May. May is a significant month for collections in nonwithholding as final payments for tax year 2017 and the first estimated payment for tax year 2018 are both due May 1. A total of $493.3 million in nonwithholding was collected in May compared with $588.8 million in May of last year, a decrease of 16.2 percent, following a strong 39.6 percent gain in the previous month. Collections of wills, suits, deeds, and contracts—mainly recordation tax collections—were $36.9 million in May, compared with $38.4 million in May of last year for decline of 4.1 percent.
On a year-to-date basis, collections of payroll withholding taxes—64 percent of General Fund revenues—increased 5.1 percent, ahead of the annual forecast of 3.5 percent growth. Sales tax collections advanced 3.0 percent on a fiscal year-to-date basis, on par with the annual forecast. Individual nonwithholding collections—16 percent of the General Fund—have increased 15.0 percent on a year-to-date basis, above the annual estimate. On a fiscal year-to-date basis, total revenue collections rose 6.1 percent in May ahead of the annual forecast of 3.4 percent growth. Collections in June must total $1.8 billion to attain the forecast, collections in June of last year were $2.2 billion.
To view the full report, click here.