Virginia ends fiscal year 2017 with surplus of $132 million
Total revenue collections rose by 3.6 percent in fiscal year 2017, ahead of the revenue forecast of 2.9 percent growth.
The main drivers of the revenue increase were growth in payroll withholding and corporate income tax collections.
Total general fund revenue collections, excluding transfers, exceeded the official budget forecast by $132 million (+0.7 percent variance) in fiscal year 2017.
The fiscal year 2017 revenue surplus is largely due to stronger payroll withholding with corporate income tax collections also making a contribution.
Payroll withholding and sales tax collections, 85 percent of total revenues, and the best indicator of current economic activity in the Commonwealth, finished $152.4 million or 1.1 percent ahead of forecast.
Corporate income tax collections increased 8.1 percent for the year, ahead of the annual forecast of 3.8 percent due to continued strength in estimated payments.
Nonwithholding income tax collections finished the year slightly below expectations, a 1.7% decline as opposed to the official forecast of a 0.7% decline.
The slowdown in this source can likely be tied to investor uncertainty surrounding future changes in the tax code. ■