May 13, 2010
Virginia's revenues increased very slightly in April, but overall collections this year are lagging behind the projected forecast.
The state's general-fund revenues increased by 0.4 percent last month over April 2009, as collections of sales and use taxes grew. The state also received several large one-time corporate income-tax payments during the month.
With March revenue growth of 3 percent, it's the first time revenue has grown in two consecutive months since March-April 2008.
Secretary of Finance Richard D. Brown's monthly revenue report also indicated that total revenues for the year so far fell 3.6 percent, trailing the 2.3 percent decline that had been projected.
Sales- and use-tax revenues totaled $250.4 million, up 7.3 percent from the same month last year, the highest monthly growth since May 2008. Brown attributed the growth to pent-up demand following the winter snowstorms and an early Easter this year.
But net individual income-tax collections - which make up about 64 percent of general-fund revenue - fell 11.9 percent for the month to $769.2 million.
Corporate income-tax collections, which make up 5 percent of general-fund revenue, grew 38.7 percent from April 2009 to $219.4 million.
Virginia must collect about $2.6 billion in May and June to meet the fiscal-year collection forecast, Brown said in his report. The fiscal year ends June 30.
A large portion of state tax payments are received in April, but the amount varies annually. Estimated and final payments will continue to be processed in May, after the May 1 deadline. Estimated payments for individuals, corporations and insurance companies are due June 15.
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