Showing posts with label Sales tax. Show all posts
Showing posts with label Sales tax. Show all posts

Thursday, November 20, 2014

October 2014 General Fund Revenue Collections Up

October 2014 General Fund Revenue Collections Up 4.4% From The Previous Year And Fiscal-Year-To-Date Collections up 6.1%

~ All Major Sources Accounted for the Gain ~

RICHMOND - Governor McAuliffe announced that General Fund revenue increased 4.4% from the previous year with all major sources contributing to the increase. October is not a significant month in terms of general fund revenue collection but regular monthly collections are due in withholding, sales taxes, and most minor sources. Corporate and individual income tax extension return processing begins in October as corporate extension returns are due October 15 and individual extension returns are due November 1.  

In speaking about the revenue collections, Governor McAuliffe said, “We have been blessed with good revenue performance since the beginning of this fiscal year. While I welcome this trend, I remain cautiously optimistic as much uncertainty still exists. Our continued efforts to diversify and to build a new Virginia economy are vital to our ongoing financial health and they constitute the proper course to improve the long term performance of the Virginia economy.”

On a fiscal year-to-date basis, total revenue collections rose 6.1%, well ahead of the revised annual forecast of 2.9% growth. The main drivers of the revenue increase were the individual income tax, the corporate income tax, and sales tax.

With one less deposit day compared with last year, collections of payroll withholding taxes rose 3.4% in October.  October is not a significant month for collections in nonwithholding, however collections rose 12.5% in October from last year. Collections of sales and use taxes, reflecting September sales, rose 1.8% in October.  October corporate income tax collections include estimated payments from corporations with a February through January fiscal year, including many retailers. Collections of corporate income taxes were down $11.8 million in October, which compares favorably with receipts of negative $17.2 million in October of last year. Finally, collections of wills, suits, deeds, and contracts – mainly recordation tax collections – were $28.9 million in October, compared with $26.4 million in October of last year for growth of 9.5%. Following 13 consecutive months of negative growth, October marked the second consecutive monthly increase in this source.

On a year-to-date basis, collections of payroll withholding taxes – 64% of General Fund revenues -- increased 5.5%, ahead of the revised annual forecast of 2.7% growth. Year-to-date nonwithholding collections increased by 14.2% and ahead of the annual estimate of 6.3% growth. Sales tax collections – 19% of General Fund revenues – increased 3.8% through October, ahead of the annual forecast calling for a 4.4% increase. Through the first four months of the fiscal year, corporate income tax collections have grown 16.6% from the same period last year, ahead of the annual estimate of a 0.9% decline.


Thursday, July 31, 2014

Virginia’s Popular Back-to-School Sales Tax Holiday Returns Friday

Money 2014 ...item 3d.. State worker ordered t...
(Photo credit: marsmet527)
~ School Supplies, Clothing and Footwear will be Exempt from Sales Tax ~

RICHMOND, Va. – It’s time to make your shopping list because Virginia’s popular sales tax holiday for clothing, footwear, and school and office supplies begins Friday.

For the ninth straight year, many clothing items, shoes, and school and office supplies will be sales tax-free during the first full weekend in August, which is Friday, Aug. 1, through Sunday, Aug. 3 this year.  It’s a great time to buy what you need while saving some money.

During the three-day event, most school and office supplies that cost $20 or less each, as well as clothing items and pairs of shoes priced at $100 or less each will be exempt from Virginia’s 5.3 percent state and local sales tax.  You’ll save even more in most Northern Virginia and Hampton Roads localities where the sales tax is 6 percent.  For example, if you spend $500 on qualifying items during the sales tax holiday, you’ll save $26.50 for tax exempt purchases.  You’ll save $30 in Northern Virginia and Hampton Roads.

The list of tax-exempt items is the same as last year.  It includes pens, pencils, loose leaf ruled notebook paper, scissors, binders, backpacks, construction paper, sneakers, hats, shirts, dresses, jeans, bathing suits, diapers, T-shirts, and many more items.  There is no requirement that the purchases be made for school purposes.

All retailers who sell the exempt items are required to participate.

The tax-exempt items are available to anyone shopping in the state and there is no limit on the number of products you can buy tax-free, as long as each one qualifies under the guidelines.

“This is an event that benefits both consumers and businesses in Virginia,” said Gov. Terry McAuliffe.  “Many families will be sending more than one child off to school soon and this gives them an opportunity to save money on purchases that are necessary to get them ready for class.  It also carries a universal appeal because everyone who wants to buy some clothes or office supplies can benefit during the three days of the holiday.  I urge all Virginians to go out and save some money, while supporting our retail community.”

If you can’t get out to the stores but still want to shop and save, online purchases of qualifying items are also tax-exempt during the sales tax holiday.

During the sales tax holiday, retailers may also choose to save taxpayers even more money by absorbing, or paying themselves, the sales tax on items that are not eligible for exemption.  In past years, many stores have taken advantage of this opportunity and some have sold everything in their stores tax-free.

An all-inclusive list of school and office supplies, a list of exempt clothing and footwear items, guidelines for shoppers and retailers, and answers to frequently asked questions are available on the Department’s Sales Tax Holiday Information Center at www.tax.virginia.gov.

Virginia’s other two sales tax holidays are for hurricane preparedness in May, and for energy-efficient appliances and water-saving items in October.

Tuesday, June 17, 2014

General Fund Revenue Collections Declined by 20.7% in May – The Biggest One Month Decline in 13 Years

This image depicts the total tax revenue (not ...
This image depicts the total tax revenue (not adjusted for inflation) for the U.S. federal government from 1980 to 2009 compared to the amount of revenue coming from individual income taxes. The data comes from the Office of Management and Budget's record of the 'Budget of the US Government FY 2011', specifically the 'Historical Tables, Table 2.1.' The information is also here. (Photo credit: Wikipedia)
Significant Decline Occurred in Individual Income Tax Payments

RICHMOND- Governor McAuliffe announced today that general fund revenue collections decreased by 20.7 percent in May, with large declines in individual nonwithholding, the corporate income tax, and the tax on wills, suits, deeds, and contracts (recordation tax).  On a year-to-date basis, total revenue collections were down 1.6 percent through May, behind the annual forecast of 1.0 percent growth. 

Speaking about this news, Governor McAuliffe noted that “May is a significant month for general fund revenue collections since individual income tax returns for income earned in 2013 are due May 1.  A significant amount of May’s collections are also from upper income individuals where a significant portion of their income is based on capital gains.  It now appears that the uncertainty of federal tax policy resulting Fiscal Cliff in December 2012/January 2013 shifted more capital gains from 2013 into 2012 than expected, lowering the amount of capital gains that would otherwise be realized in 2013.  Accordingly, Virginia like many other states that have income taxes are now seeing declining revenues from capital gains.” 

As for other sources of revenue, collections of payroll withholding taxes fell 5.4 percent in May, due to one less deposit day compared with May 2013.  Corporate income tax collections decreased by  33.2 percent from last year.  Collections of sales and use taxes, reflecting April sales, fell 1.6 percent in May. Finally, recordation taxes from real estate transactions were down 27.3 percent as home sales and refinancing activity remained weak. 

On a year-to-date basis, collections of payroll withholding taxes – 63 percent of General Fund revenues -- increased 2.5 percent, behind the annual forecast of 2.9 percent growth.  Sales tax collections - 18 percent of General Fund revenues – have declined 4.5 percent through May, trailing the annual forecast calling for a 4.4 percent decline.  Adjusting for the accelerated sales tax program and the tax policy changes, included in last year’s transportation funding legislation, total revenues are down 0.6 percent through May, behind the adjusted forecast of 2.1 percent growth. 

Wednesday, May 21, 2014

General Fund Revenue Collections Increased 10.0% in April

English:
English: (Photo credit: Wikipedia)
Solid Gains Occurred in Net Individual Income Tax and the Insurance Premiums Tax


RICHMOND- Governor McAuliffe announced today that general fund revenue collections increased 10.0 percent in April, with solid gains in individual withholding and nonwithholding as well as in the insurance premiums tax.  On a year-to-date basis, total revenue collections were up 1.3 percent through April, slightly ahead of the annual forecast of 1.0 percent growth. 

“April is generally a significant month for revenue collections, said Governor McAuliffe. “The revenue data being released today represent a step in the right direction.”

May will be a critical month since individual income tax returns are due May 1.  In addition, a significant amount of May’s payments are from upper income individuals where a significant portion of their income is based on capital gains.  Recent news from states across the nation that have April 15th filing deadlines indicate some disappointing news about non-withholding collections as the uncertainty arising from the federal Fiscal Cliff tax policy negotiations in the  December 2012/January 2013 timeframe appears to have shifted more capital gains from 2013 into 2012 than otherwise would be the case.  As a result, we must be cautious and continue our efforts to place a priority on creating jobs and diversifying our economy. 

Collections of payroll withholding taxes grew 8.0 percent in April, due to an extra deposit day compared with April 2013.  A significant month for individual nonwithholding and corporate income tax collections, these sources increased respectively by 15.0 percent and 0.4 percent.  The first estimated payment from insurance companies for tax year 2014 was due in April.  The insurance premiums tax totaled $113.8 million and increased by 11.0 percent.  Collections of sales and use taxes, reflecting March sales, fell 5.0 percent in April.  Finally, recordation taxes from real estate transactions were down 19.9 percent as home sales remained weak. 

On a year-to-date basis, collections of payroll withholding taxes – 63 percent of General Fund revenues -- increased 3.3 percent, ahead of the annual forecast of 2.9 percent growth.  Sales tax collections - 18 percent of General Fund revenues – have declined 4.8 percent through April, trailing the annual forecast calling for a 4.4 percent decline.  Adjusting for the accelerated sales tax program and the 0.125 percent sales tax transfer required by the provisions of HB 2313, total revenues grew 2.2 percent through April, slightly ahead of the adjusted forecast of 2.1 percent growth. 
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Tuesday, April 15, 2014

General Fund Revenue Collections Increased 7.8% in March

An assortment of United States coins, includin...
An assortment of United States coins, including quarters, dimes, nickels and pennies. (Photo credit: Wikipedia)
Solid Gains Occurred in Individual Nonwithholding, Corporate Income Tax and the Insurance Premiums Tax

 RICHMOND- Governor McAuliffe announced today that general fund revenue collections increased 7.8 percent in March, with solid gains in individual nonwithholding, corporate income tax and the insurance premiums tax.  On a year-to-date basis, total revenue collections were flat through March, lagging the annual forecast of 1.0 percent growth. 

Speaking about this news, Governor McAuliffe noted that March is not a significant month for revenue collections, in general.  However, he added “March revenues reverse the negatives of the last two months and have us now moving in the right direction.  From the very beginning of our budget deliberations, all involved have assumed that general fund revenue collections in the last quarter of fiscal year 2014, especially estimated and final payments of individual income taxes, would be key for the Commonwealth.  The revenue data for March, being released today, represent a step in the right direction toward realizing our budget estimates.  Longer term, we must continue to place a priority on creating jobs and diversifying our economy.  This is my highest objective and I will work diligently toward that end.”

Collections of payroll withholding taxes grew 0.8 percent in March.  Although not a significant month for individual nonwithholding and corporate income tax collections, these sources increased respectively by 17.7 percent and 35.1 percent.  Final payments from insurance companies for tax year 2013 were due in March.  The insurance premiums tax totaled $31.6 million and increased by 126.5 percent.  Collections of sales and use taxes, reflecting February sales, fell 4.2 percent in March – the weakness is due in part to the weather.  Finally, recordation taxes from real estate transactions were down 29.9 percent as severe winter weather dampened home sales. 

Collections of payroll withholding taxes – 63 percent of General Fund revenues -- increased 2.7 percent through March, slightly behind the annual forecast of 2.9 percent growth.  Sales tax collections - 18 percent of General Fund revenues – have declined 4.8 percent through March, trailing the annual forecast calling for a 4.4 percent decline.  Adjusting for the accelerated sales tax program and the 0.125 percent sales tax transfer required by the provisions of HB 2313, total revenues grew 1.1 percent through March, trailing the adjusted forecast of 2.1 percent growth. 
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Thursday, March 13, 2014

Governor McAuliffe Announces Revenue Collections Declined 3.4% in February

An assortment of United States coins, includin...
 (Photo credit: Wikipedia)
A Solid Gain in Withholding was Offset by Subpar Collections of the Sales and Insurance Premiums Taxes

RICHMOND- Governor McAuliffe today announced that state general fund revenue collections declined 3.4% in February.  There was a solid gain in individual income tax withholding but that was offset by declines in retail sales, insurance premiums tax and recordation taxes. The Governor noted that February is not generally a significant month for revenue collections and percentages can vary accordingly. 
Collections of payroll withholding taxes grew a solid 6.6 percent in February.  Collections of sales and use taxes, reflecting January sales, fell 12.7 percent in February.  The first significant snow storms since December 2010 occurred in January probably affecting sales tax receipts due in February. Also, the State Corporation Commission issued insurance companies refunds in February this year versus in January of 2013, distorting total monthly revenues.  Finally, recordation taxes from real estate transactions were down 38.4 percent, as severe winter weather dampened home sales. 
Speaking to the revenue trend, Governor McAuliffe said that withholding receipts posted a solid gain, perhaps reflecting more positive news on the labor market front.  However, he noted that the weak sales tax performance was probably influenced by the severe weather conditions this winter.  The Governor further indicated that going forward much will depend on final income tax payments due on or before May 1.  “My goal is to keep job creation up” he said.  “If that happens, I am hopeful that other variables such as sales tax collections will improve.”
On a year-to-date basis, total revenue collections fell 0.8 percent through February, lagging the midsession annual forecast of 1.0 percent growth.  Adjusting for the accelerated sales tax program and the 0.125 percent sales tax transfer required by the provisions of HB 2313, total revenues grew 0.3 percent through February, trailing the adjusted forecast of 2.1 percent growth.  Collections of payroll withholding taxes – 63 percent of General Fund revenues – increased 3.0 percent, slightly ahead of the midsession annual forecast of 2.9 percent growth.  Sales tax collections – 18 percent of General Fund revenues – have declined 4.9 percent, slightly trailing the annual forecast calling for a 4.4 percent decline.  
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Wednesday, January 15, 2014

Virginia Posts 0.8% Revenue Increase in December

English: The state seal of Virginia. Српски / ...
 (Photo credit: Wikipedia)
RICHMOND - Governor Bob McDonnell announced today that December 2013 revenue collections increased by 0.8 percent from December of 2012. On a year-to-date basis, total revenue collections rose 0.7 percent through December, lagging the annual forecast of 1.7 percent growth. Adjusting for the accelerated sales tax program and the 0.125 percent sales tax transfer required by last session's historic transportation bill, total revenues grew 1.7 percent through December, trailing the adjusted forecast of 2.9 percent growth.

The increase in December revenue was driven by solid growth in collections of individual withholding and nonwitholding partially offset by an increase in refunds and declines in sales, corporate income tax, and recordation taxes.  Individual withholding rose 3.1 percent. Year-to-date collections of individual nonwithholding through the first half of the fiscal year rose by 12.4 percent, well ahead of the annual estimate of a 6.3 percent increase.  At the same time, sales and use taxes, reflecting sales made in November, fell 4.3 percent in December.

Because a number of factors can influence the flow of payments and monthly growth rates this time of year, December and January receipts must be considered together to get a clear picture of revenue growth.

Speaking about the December numbers, Governor McDonnell noted, “Over the last four years we have both projected revenue growth and budgeted conservatively.  In doing so, we have helped put Virginia in a more sound financial position for the future.  Virginia’s economy continues to improve.  Over the last four years we have worked in a bipartisan fashion to put in place policies that strengthen that give our private sector job-creators the tools they need to create jobs and opportunities for all Virginians.  This approach has worked.  Since the beginning of this Administration 177,300 net new jobs have been created.  And, our unemployment rate has fallen two full percentage points, from 7.4% to 5.4%.  I want to commend the great work of Virginia’s first chief jobs creation officer, Lieutenant Governor Bill Bolling, and the members of the General Assembly for putting in place pro-growth policies that have helped the Commonwealth emerge as an economic leader during tough fiscal times.”

The December revenue numbers are available at this link:http://www.finance.virginia.gov/KeyDocuments/RevenueReports/MasterReportsList.cfm
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Saturday, November 16, 2013

Virginia Posts 5.4% Revenue Decrease in October

Governor of Virginia Bob McDonnell speaking at...
Governor of Virginia Bob McDonnell speaking at CPAC. Please attribute to Gage Skidmore if used elsewhere. (Photo credit: Wikipedia)
– Not a Significant Month for Revenue –
Minimal Growth in Withholding Most Likely Result of Federal Government Shutdown

RICHMOND - Governor Bob McDonnell announced today that October revenue collections decreased by 5.4 percent from October of last year. October is not a significant month for revenue collections. On a year-to-date basis, total revenue collections rose 0.6 percent through October, trailing the annual forecast of 1.5 percent growth. Adjusting for the accelerated sales tax program and the 0.125 percent sales tax transfer required by last session’s historic transportation bill, total revenues grew 1.6 percent through October, trailing the adjusted forecast of 2.7 percent growth.

The decrease in October revenue was driven by declines in corporate, sales and recordation taxes, along with an increase in individual refunds. Collections of payroll withholding taxes only grew by 0.5% in October, with the weakness in growth most likely attributable to the federal government shutdown. Sales and use tax receipts fell by 1.7%, but that number reflects sales in September, prior to the federal government shutdown. Any potential impact of the shutdown on sales in Virginia would be reflected in the upcoming November revenue report.

 Speaking about the October numbers, Governor Bob McDonnell noted, “Over the last four years we’ve worked together in Richmond to find common ground and put in place policies that will spur private sector job creation and economic growth. Those policies have gotten results. 158,000 new private sector jobs have been created in Virginia, and our unemployment rate has fallen from 7.4% to 5.8%, the lowest rate in the Southeast. However, despite our work in the Commonwealth, we increasingly face headwinds that while not of our making, are having a detrimental impact on our people and our economy. The federal government continues to fail at the most basic of functions, including most recently failing at just the simple act of remaining open. This is having a direct impact on the finances of Virginia’s residents and our state government. We must continue to take prudent and proactive steps in our state government to help prepare the Commonwealth for the continued uncertainty that lies ahead. I look forward to working with the incoming administration of Governor-elect Terry McAuliffe to ensure that there is continuity in the successful bipartisan efforts that have helped make Virginia a national economic leader, even in these difficult times.”

            The October revenue numbers are available at this link:http://www.finance.virginia.gov/KeyDocuments/RevenueReports/MasterReportsList.cfm
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