WASHINGTON, July 10 Virginia's revenues fell in
the fiscal year that ended on June 30, missing expectations and
creating a $438.5 million shortfall, the governor's office said
Virginia survived the 2007-2009 economic downturn relatively
unscathed, and the fiscal year 2014 marks the first time its
income has dropped outside of a national recession, according to
the office of Governor Terry McAuliffe.
Total general fund revenue collections were down 1.6 percent
from fiscal 2013, compared with the forecast of 1 percent
growth, mostly because of an unexpected decline in capital gains
Federal tax breaks expired at the end of 2012, prompting
many taxpayers to sell off investments and otherwise
"accelerate" their income into that year. Virginians "shifted
more realized capital gains from 2013 into 2012 than expected,"
said the office. Altogether, the non-wage income taxes missed
estimates by $401.1 million.
Meanwhile, withheld individual income taxes, which make up
nearly two-thirds of Virginia's revenues, rose from the previous
year by 2.3 percent. That was still $66 million, or 0.6 percent,
lower than expected. Sales and use taxes, 19 percent of total
revenues, were $12.9 million, or 0.4 percent, below estimates.
(Reporting By Lisa Lambert; Editing by Mohammad Zargham)