Virginia Posts 2.6% Revenue Increase in September

Governor of Virginia Bob McDonnell  Gage Skidmore . (Photo credit: Wikipedia)

– Significant Month for Revenue –

September Revenues All Pre-Federal Government Shutdown

RICHMOND - Governor Bob McDonnell announced today that September revenue collections increased by 2.6 percent from September of last year. September is a significant month for revenue collections because in addition to normal collections, the state also receives the first estimated income tax payment from individuals and corporations. On a year-to-date basis, total revenue collections rose 2.8 percent through September, ahead of 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 3.5 percent through September, ahead of the adjusted forecast of 1.4 percent growth.

The increase in September revenue was driven by growth in individual withholding, corporate income taxes and individual nonwithholding. Individual withholding rose 2.9 percent and individual nonwithholding grew by 2.1 percent. Corporate income tax collections increased by 16.7 percent. At the same time, sales and use taxes, reflecting sales made in August, fell 2.7 percent.

Speaking about the September numbers, Governor Bob McDonnell noted, “September was a positive revenue month for the Commonwealth, and we continue to run well ahead of our forecasted fiscal growth for the year. This is empirical evidence that the bipartisan steps we’ve taken here in Richmond to help the private-sector grow and create good jobs for our people are working. Unfortunately, the efforts we’ve undertaken in Virginia to make government function better, and use limited state resources wisely to improve the quality of life of our citizens, are being undermined daily by the dysfunction in Washington D.C. The ongoing federal government shutdown will have a direct negative impact on state revenues in the months ahead, just as it is already having a direct, negative impact on Virginians in their daily lives. The success of our Commonwealth is being threatened by the ineptness of Washington. I continue to call on leaders in both parties to reopen the federal government immediately, and come together to find solutions to the challenges facing our great nation.”

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

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Tax Holiday for Energy-Efficient Appliances Returns to Virginia October 11-14

Look for this logo when considering your new roofing materials (Photo credit: Wikipedia)

~ It’s a great time to replace old, inefficient washers, AC units, etc. ~

RICHMOND – If your old appliances are on their last legs, it’s a great time to replace them with energy-efficient products while saving some money.  Virginia’s seventh Energy Star and WaterSense Sales Tax Holiday returns Friday, Oct. 11, and lasts through Monday, Oct. 14.

Energy Star and WaterSense products are better for the environment, and have the added benefit of lowering your home’s energy bills.

Each qualifying product must cost $2,500 or less, have either an Energy Star or WaterSense label affixed, and be purchased for personal or noncommercial use.  Qualifying Energy Star products include air conditioners, ceiling fans, washing machines, dishwashers, dehumidifiers, refrigerators and compact fluorescent light bulbs (CFLs). WaterSense-labeled bathroom sink faucets, faucet accessories, toilets, showerheads, urinals and landscape irrigation controllers will also be tax-exempt. Certain used Energy Star and WaterSense items will also qualify for tax-free status during the four-day exemption period.

“If there’s one thing most of us can relate to this time of year, it’s a desire to lower our energy bills,” said Governor Bob McDonnell.  “Not only is it a good way to save some money, it’s also good for the environment.  For the past several years, Virginians have had the opportunity to save money by replacing their old, outdated appliances with Energy Star or WaterSense products. Even if you’re not in the market for new appliances, everyone needs light bulbs – and CFLs are included in the holiday. I urge everyone who needs these products to go out and take advantage of this long money-saving weekend.”

The Department of Taxation has posted guidelines, frequently asked questions, and a list of approved Energy Star and WaterSense items on its website at tax.virginia.gov.

Online purchases of qualifying Energy Star and WaterSense products will also be exempt from the sales tax as long as the orders are placed during the Oct. 11-14 exemption period and the sellers have the items available for immediate shipment.

In addition to exempting certain Energy Star and WaterSense products from the sales tax during the four-day tax holiday, retailers may also offer non-exempt merchandise sales-tax free.  Retailers who choose to do this must pay the tax themselves to the Department of Taxation.

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Virginia's Back-to-School Sales Tax Holiday Returns August 2-4

English: Governor of Virginia at CPAC in . (Photo credit: Wikipedia)

– Many Clothing Items and School Supplies Will be Tax-Free –

RICHMOND - It's the end of July, and you've still got a whole month left to play in the pool, grill outdoors, and visit Virginia's beautiful state parks with your kids. Back-to-school shopping might be the last thing on your mind at the moment. You may want to slip your flip-flops back on and hit the stores, however, because it's time once again for Virginia's annual back-to-school sales tax holiday.
This year's holiday begins on Friday, Aug. 2, and runs through Sunday, Aug. 4. Items that will be exempt from sales tax during the holiday include most articles of clothing and footwear priced at $100 or less each, and school or office supplies that cost $20 or less per item. There is no limit to the number of items you can purchase without paying the sales tax, provided each item meets the holiday restrictions.

"After four straight years of revenue surpluses, it is evident that Virginia's economy continues to strengthen," said Governor Bob McDonnell. "I hope Virginians will go out and take advantage of this holiday by spending their back-to-school dollars at Virginia retailers. Not only will this continue to benefit our state's economy and employers, it will save Virginians some money at the same time."

A list of qualifying items, guidelines for the holiday, and answers to frequently asked questions are available on the Virginia Department of Taxation's website at http://www.tax.virginia.gov/site.cfm?alias=SchoolSuppliesAndClothingHoliday. Anyone can buy tax-exempt items during the holiday; it is not limited to purchases for students. During the tax holidays, retailers may elect to pay the sales tax themselves on any non-qualifying items that they want to offer tax-free to customers. This means great deals can likely be found on many other items as well.