Gov. Abigail Spanberger announced that August revenues increased 2.8 percent compared to last August. On a fiscal year-to-date basis through the first two months of Fiscal Year 2027, collections have grown 5.4 percent.
Growth has been driven by strong sales tax receipts. Compared to the official forecast, revenues are ahead of expectations by 1.8 percent.
“Revenue remains generally in line with our forecast through the first two months of the fiscal year, though continued national economic uncertainty means we must stay vigilant,” said Spanberger. “With high costs driven by the President’s reckless war and an uncertain labor market remaining areas of concern nationwide, particularly given persistently high inflation, we will continue to responsibly manage the Commonwealth’s finances. Our disciplined fiscal approach will make sure Virginia is prepared to navigate any future challenges as we focus on lowering costs for families, strengthening our business climate, and bringing continued investment to every region of Virginia.”
“August is a light month for revenue collections, with no major quarterly deadlines affecting sources like nonwithholding or corporate income tax,” said Secretary of Finance Mark D. Sickles. “Withholding collections came in $37.3 million below forecast for the month, though that is well within the normal range of monthly variance for that source. Sales and use tax collections continued to outperform, growing 4.0 percent for the month. We are concerned by persistently high core inflation and the resulting increased likelihood of a Federal Reserve rate hike.”
Fiscal year-to-date through August 31, General Fund revenues are up 5.4 percent, or $236.5 million, over the same period last year, and are 1.8 percent, or $81.5 million, ahead of the official forecast.
