January 13, 2011
Governor Bob McDonnell announced Thursday that December revenue collections increased by 9.5% over the prior year when adjusted for the December 2009 one-time tax amnesty program.
This is the ninth month out of the last ten in which state revenue collections exceeded the previous year’s amount. It is the second month in a row in which year over year revenue growth was greater than 9%.
The revenue increase was primarily driven by withholding (+3.9%), corporate income (+3.4%) and sales tax (+8.6%- adjusted for tax amnesty) collections. Adjusted for the accelerated sales tax program, total state revenues grew 4.1 percent through December, slightly lagging the economic-base forecast of 5.2 percent growth.
Speaking about the latest revenue report, Governor McDonnell noted, “In a tough economy we are beginning to see real signs of progress and recovery. We have just posted two months of back to back 9% revenue growth, in the midst of a string of nine out of the last ten months featuring increases in state revenue. These are positive demonstrations of economic progress."
The December revenue numbers are available here.