State General Fund revenue collections continued their strong performance for another month, rising 5.7 percent in March. On a fiscal year-to-date basis, total GF revenue collections grew 4.6 percent, ahead of the 2.9 percent annual growth forecast. Growth in March was driven primarily by individual income tax withholding, which comprises 63 percent of total GF revenues and grew 6.8 percent this month. Year-to-date individual withholding receipts have grown by 5.3 percent; the forecast for this category is 3.6 percent growth.
As was the case in February, sales tax revenues grew, but continue to lag the annual estimate. Adjusted for the accelerated sales tax program, revenues have grown by 1.6 percent on a year-to-date basis; the annual forecast projects 2.7 percent growth.
Governor McAuliffe noted in his statement that although the last three months of the fiscal year are significant months for revenue collections (with estimated and final income tax payments due from corporations and individuals in April and May and estimated payments due again in June), the healthy collections thus far provide the state with a “cushion” in meeting the official revenue forecast. Secretary of Finance Ric Brown’s March revenue letter may be found here.
VACo Contact: Katie Boyle