RICHMOND—Governor Ralph Northam announced that August General Fund revenue collections decreased 0.2 percent from the previous year.
“Despite trying economic conditions, collections from payroll withholding and sales taxes remained steady,” said Governor Northam. “We look forward to September’s receipts, which will provide more insight into Virginia’s financial picture.”
With one less deposit day than August of last year, collections of payroll withholding taxes decreased 4.0 percent in August. Collections of sales and use taxes, reflecting July sales, grew 1.2 percent in August. Recordation taxes from real estate transactions increased by 31.3 percent.
On a year-to-date basis, collections of payroll withholding taxes—64 percent of General Fund revenues—were down 1.9 percent, below the annual estimate of a 2.4 percent increase. Sales tax collections—16 percent of General Fund revenues—grew 15.0 percent year-to-date, ahead of the forecast of a 9.7 percent decline. On a fiscal year-to-date basis, total revenue collections rose 11.6 percent in August, above the annual forecast of a 1.8 percent decline.
A special session is currently ongoing to address the state’s budget, as well as social justice issues touted by Democrats, which has no apparent end in sight.