The Bulletin

Virginia revenue collections top projections

By: - October 12, 2018 3:11 pm

The sun rises over the Virginia Capitol. (Ned Oliver/Virginia Mercury)

Virginia’s revenue collections are higher than projected so far this year, Gov. Ralph Northam’s office announced in a news release.

The state projected a 1.5 percent increase in tax collections for Virginia’s general fund. Collections have instead risen 2.7 percent, according to the governor’s office.

“The positive trends in this report indicate that our approach to growing and diversifying Virginia’s economy is working,” Northam said in a statement. “We have worked to strengthen our reserves, and as we move into Virginia’s next budget period, I’m committed to managing our revenues to continue our progress and ensure that our commonwealth can sustain long-term economic growth for years to come.”

The increase in revenue came from payroll and sales taxes, Northam’s office said.

Non-withholding payroll tax payments collected last month increased 15.4 percent over September 2017 and sales tax, based on August sales, grew 7.5 percent compared to the same time last year.

But not every revenue source increased: Corporate income tax collection fell 13.3 percent compared to last year.

That particular revenue stream is volatile, said Secretary of Finance Aubrey Layne, and a relatively small part of the state’s total revenue. Corporations can operate on different fiscal years, so payment to the state comes at different times, he said.

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Mechelle Hankerson
Mechelle Hankerson

Mechelle, born and raised in Virginia Beach, is a graduate of Virginia Commonwealth University with a degree in mass communications and a concentration in print journalism. She covered the General Assembly for the university’s Capital News Service and was among 12 student journalists in swing states selected by the Washington Post to cover the 2012 presidential election. For the past five years, she has covered local government, crime, housing, infrastructure and other issues at the Raleigh News & Observer and The Virginian-Pilot, where she most recently covered the state’s biggest city, Virginia Beach. Mechelle was with the Virginia Mercury until January 3rd, 2019.