May revenue collections increased 22.5 percent from a year ago, according to a release from Gov. Ralph Northam’s office. On a fiscal year-to-date basis, total revenue collections rose 7.9 percent, ahead of the annual forecast of 3.3 percent growth. Approximately $450 million of the additional revenue is needed to fund the Taxpayer Relief Fund.

“I am encouraged by these strong results in payroll withholding and sales tax collections, which continue to show that the Virginia economy is still growing and creating good-paying jobs,” Northam said. “As we approach the end of the fiscal year, my team and I will remain focused on building on the gains we have made to ensure economic stability and long-term positive growth in the Commonwealth.”

May is a significant month for revenue collections. Individual nonwithholding payments were due May 1; nonwithholding payments posted a 55.1 percent gain in May. Due to strong non-wage income growth and the effects of the federal Tax Cuts and Jobs Act, a strong gain was expected. In addition, withholding, sales, and recordation tax collections all posted solid growth for the month while refunds fell. Collections of…

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