Virginia's August revenue up 18.9 percent, fiscal year 2021 in historic $2.6 billion surplus
“August's revenue numbers show that our roaring economic recovery is continuing,” said Governor Northam.
“Thanks to fiscally responsible stewardship, Virginia ended fiscal year 2021 with an historic $2.6 billion surplus—the largest in the Commonwealth’s history, despite the pandemic. I am proud of what August’s numbers say about our work to support the economic recovery by helping Virginians who need it and making strategic investments in our future.”
This increase shows the strength of Virginia’s economy, even in a month that traditionally is not significant for revenue collections, with collections mainly from withholding, sales taxes, and other sources that have regular monthly payments.
Collections of payroll withholding taxes increased 12.7 percent in August. Collections of sales and use taxes, reflecting July sales, grew 20.2 percent in August. Recordation taxes from real estate transactions increased by 8.9 percent. There was one more deposit day this August than there was August of last year. The first estimated payments from individuals, corporations and insurance companies are due in September.
“September collections will complete the first quarter of fiscal year 2022 and provide a clearer assessment of fiscal year 2022,” said Secretary of Finance Joe Flores. “We expect growth to continue as we prepare for the next budget cycle.”
On a year-to-date basis, collections of payroll withholding taxes—62 percent of General Fund revenues—were up 9.6 percent, above the annual estimate of a 1.7 percent increase. Sales tax collections—17 percent of General Fund revenues—grew 14.3 percent year-to-date, ahead of the forecast of a 4.2 percent decline. On a fiscal year-to-date basis, total revenue collections rose 5.2 percent in August, above the annual forecast of an 8.0 percent decline. ■