September Revenues Up; 1st Fiscal Quarter Ends Big
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RICHMOND, Va. — Virginia’s September tax collections finished up 2.6 percent over the same month last year, ending the state’s first fiscal quarter comfortably ahead of its budgeted growth forecast.
For the first three months of fiscal year 2014, Virginia has collected $3.7 billion in general taxes that fund core services such as education, health care and public safety. The total is 2.8 percent ahead of last year’s $3.6 billion.
Budgeted spending is based on 1.5 percent revenue growth.
It marks the 12th consecutive quarter of revenue growth dating to the fall of 2010 for Virginia government.
The most broadly paid tax withheld from paychecks was up by nearly 3 percent from the same month last year. Individual income tax withholdings account for about two-thirds of all general revenues. Corporate income taxes for the month were up by 16.7 percent.
September also marked the second month in a row that collections of the tax paid to record wills, lawsuits, contracts and, most notably, real estate deeds lapsed behind collections for the same month a year earlier. Total collected for the tax which has been a reliable gauge for the home mortgage market were down 3.8 percent for the month after a 1.9 percent drop last month.
August and September represent the first back-to-back monthly declines in the “recordation tax” since the spring of 2011.
What September’s figures don’t reflect is slowing in Virginia’s economy from furloughs or layoffs resulting from the federal government shutdown that began Oct. 1 after Congress failed to agree on a temporary funding measure.
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