State General Fund revenue down only 0.2% in August

Sales and use tax collections saw increase

Published September 11, 2020 by Sydney Lake

Despite the pandemic, Gov. Ralph Northam announced Thursday that August General Fund revenue collections decreased only 0.2% compared to the same time last year.

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

Payroll withholding tax collections decreased 4% in August and sales and use tax collections (which reflect July sales) increased 1.2%. Recordation taxes from real estate transactions increased by 31.3%.

“September collections will complete the first quarter of fiscal year 2021,” Secretary of Finance Aubrey Layne said in a statement. “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, payroll withholding tax collections (which make up 64% of General Fund revenues) were down by 1.9%, less than the estimated 2.4% annual increase. Sales tax collections (which comprise 16% of General Fund revenues) increased 15%, greater than a forecast 9.7% decline. Total revenue collections rose 11.6% in August on a year-to-date basis. Those collections were forecast to have a 1.8% decline.

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