December state revenue increased 0.8 percent

Published January 10, 2014 by Robert Powell, III

Virginia’s revenue collections in December rose 0.8 percent from same month in 2012, according to the governor’s office.

On a year-to-date basis, total collections increased 0.7 percent through December, lagging a forecast of 1.7 percent growth.

Adjusting for the state’s accelerated sales tax program and the 0.125 percent sales tax transfer required by a major transportation bill approved in last year’s General Assembly session, total revenue grew 1.7 percent through December, trailing the adjusted forecast of 2.9 percent growth.

The increase in December revenue was driven by growth in collections of individual withholding and nonwitholding partially offset by an increase in refunds and declines in sales, corporate income tax and recordation taxes.

Individual withholding rose 3.1 percent. Year-to-date collections of individual nonwithholding through the first half of the fiscal year rose by 12.4 percent, ahead of the annual estimate of a 6.3 percent increase. 

At the same time, sales and use taxes, reflecting sales made in November, fell 4.3 percent in December.