August revenue report shows slight decrease in collections

August General Fund revenue collections decreased 0.2 percent from the previous year, according to a recent announcement by Gov. Ralph Northam.

“Despite trying economic conditions, collections from payroll withholding and sales taxes remained steady,” said Northam. “We look forward to September’s receipts, which will provide more insight into Virginia’s financial picture.”

With one less deposit day than August of last year, collections of payroll withholding taxes decreased 4.0 percent in August. Collections of sales and use taxes, reflecting July sales, grew 1.2 percent in August. Recordation taxes from real estate transactions increased by 31.3 percent.

“September collections will complete the first quarter of fiscal year 2021,” said Secretary of Finance Aubrey Layne. “Close to $250 million of July’s collections were from individual and corporate income tax payments that were originally due June 1. September receipts will provide a much clearer assessment of fiscal year 2021 collections and trends.”

On a year-to-date basis, collections of payroll withholding taxes—64 percent of General Fund revenues—were down 1.9 percent, below the annual estimate of a 2.4 percent increase. Sales tax collections—16 percent of General Fund revenues—grew 15.0 percent year-to-date, ahead of the forecast of a 9.7 percent decline. On a fiscal year-to-date basis, total revenue collections rose 11.6 percent in August, above the annual forecast of a 1.8 percent decline.

 

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