March 14, 2012
Governor Bob McDonnell announced Wednesday that February revenue collections rose 17.2 percent over the same month a year ago.
February is typically not a significant month for revenue collections, but an extra deposit day created by the leap year observance bolstered the numbers and all major sources except insurance premiums contributed to February’s growth.
“Virginia continues to gradually recover from the extremely difficult economic period of the past several years,” Governor McDonnell said. “The bipartisan effort to put in place a pro-business, job-creation agenda in the Commonwealth is paying dividends."
On a year-to-date basis, total revenue collections have risen 5.0 percent, slightly ahead of the revised annual forecast of 4.6 percent growth. Adjusted for the accelerated sales tax program, state revenues have grown 4.6 percent, close to the economic base forecast of 4.7 percent growth.
The revenue gains this year compared to last February were reflected across all major revenue sources except wills, suits, deeds and contracts, and insurance premiums. These include, individual income tax withholding which rose 16.0 percent, collections of income tax non-withholding which rose 35.7 percent, sales and use tax collections which rose 5.7 percent, and collection of corporate income taxes which rose 28.8 percent.
This overall 17.2 percent growth rate was the highest since last May when revenue growth registered 17.9 percent buoyed by final income tax payments. February is typically not a significant month for revenue collections. An extra deposit day created by the leap year observance bolstered the numbers.
The Commonwealth issued its general fund revenue forecast in December, revising total general fund revenues to grow by 4.6 percent in fiscal year 2012.
To view the February revenue numbers, click here.