January 2017 general fund revenue collections up 7.4% in Virginia
On a fiscal year-to-date basis, total revenue collections rose 4.6 percent through January, ahead of the revised annual forecast of 2.9 percent growth.
January is a significant month for revenue collections. Besides the normal monthly payroll withholding and sales tax collections, estimated payments from individuals are due in January.
The growth in January was due to payroll withholding and sales tax collections.
Collections of payroll withholding taxes grew 8.0 percent for the month, with one more deposit day than January of last year. Collections of sales and use taxes, reflecting December sales, rose 6.3 percent in January.
Also, December and January are significant months for collections of nonwithholding and receipts can be distorted by the timing of payments.
Taxpayers had until January 17 to submit their fourth estimated payment for tax year 2016 and some of these payments are received in December.
Receipts of nonwithholding for the two-month period rose 1.8 percent from last year.
Year-to-date, withholding collections are 5.0 percent ahead of the same period last year, above the revised annual estimate of 3.6 percent growth.
On a year-to-date basis, sales tax collections have risen 0.9 percent, trailing the annual estimate of 2.7 percent growth.
Nonwithholding collections for the first seven months of the fiscal year rose by 1.2 percent, ahead of the annual estimate of a 0.7 percent decline. ■