March state revenues rose 11.8 percent

Published April 13, 2015 by Robert Powell, III

Virginia’s March revenue collections increased 11.8 percent.  On a fiscal year-to-date basis, total revenue collections rose 7.1 percent.

That pace is ahead of the revised annual forecast of 4.7 percent growth contained in the budget bill passed by in the last  the General Assembly session, according to Gov. Terry McAuliffe’s office. 

Collections of payroll withholding taxes rose 10.3 percent in March, with an additional deposit day in the month as compared to last year.  Because winter weather dampened retail sales, collections of sales and use taxes, reflecting February sales, rose only 0.8 percent in March. 

While March is not a significant month for nonwithholding, receipts in this source were $151.1 million compared with $124.3 million in March of last year.

The Department of Taxation issued $330.3 million in refunds in March compared with $336.4 million last year, a 1.8 percent decline. 

For the January-March period, the Department of Taxation ssued about 1.6 million refunds, the same amount as last year during the first three months of the year. 

On a year-to-date basis, collections of payroll withholding taxes – 63 percent of General Fund revenues — increased 4.9 percent, ahead of the revised annual forecast of 4 percent growth. 

Sales tax collections – 19 percent of General Fund revenues – increased 4 percent through March, behind the annual forecast calling for a 4.9 percent increase. 

Adjusting for the accelerated sales tax program and the 0.1 percent sales tax transfer to transportation as required by law, total revenues rose 7 percent through March, ahead of the adjusted forecast of 4.5 percent growth.