Sixth Month out of Last Seven with Increase in Revenue Collections over Prior YearWithholding, Corporate Income, Sales Taxes Drive Growth
RICHMOND- Governor Bob McDonnell announced today that September revenue collections increased by 4.1% over the prior year. This is the sixth month out of the last seven in which state revenue collections exceeded the previous year's amount. The revenue increase was primarily driven by withholding (+6.8%), corporate income (+13.8%) and sales tax (+2.1%) collections. Adjusted for the accelerated sales tax program, total state revenues grew 3.6% through September, lagging the economic-base forecast of 4.2% growth. However, adjusted total state revenue growth was 3.3% through August, demonstrating a positive direction in that number.
Speaking about the latest revenue report, Governor McDonnell noted, "The growth in revenue derived from withholding, corporate income and sales taxes is good news for the Commonwealth. It demonstrates increased activity in key areas of our economy. While year to date revenue growth slightly lags the base forecast, that difference has narrowed over the past few reports. This monthly report has a number of positive components, but it in no way indicates that we have emerged from the economic downturn that has impacted every Virginian over the past two years. Credit remains too tight and the unemployment rate remains too high. Any true and lasting economic recovery will only be possible through sustained private sector job creation and investment. Our Administration is committed to creating the policy environment in which that can occur. We will keep taxes, litigation, and regulation at a minimum, and make state government smaller and more efficient. That is how we will ensure Virginia's economy gets back on track, and our citizens can find the high-paying jobs they deserve, in every city and county in the Commonwealth."
The September revenue numbers are available at this link:
http://www.finance.virginia.gov/KeyDocuments/RevenueReports/FY2010-2011/2011ReportsList.cfm
###