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Virginia revenues surge 20.5 percent in May
June 13, 2013 / 10:16 PM / 4 years ago

Virginia revenues surge 20.5 percent in May

June 13 (Reuters) - Governor Bob McDonnell said on Thursday that revenues in Virginia rose 20.5 percent in May from the same month a year before, mostly due to a big jump in individuals’ payments of taxes that are not withheld from paychecks.

Virginia is particularly vulnerable to federal budget fights given its proximity to the nation’s capital. In February its revenues fell for the first time in more than a year and a half, followed in March by its biggest decline in more than two years.

The May revenue jump will help Virginia meet its budget forecast for the fiscal year ending June 30. To end in line with forecast it will need to bring in $1.7 billion this month. Last June, it collected $1.9 billion.

The “nonwithholding payments” increased 74.7 percent to $776.1 million from $444.2 million in May 2012, according to the governor’s office. The self-employed, such as the contractors and sub-contractors who make up a large part of Virginia’s labor force, do not have taxes taken from their paychecks, and instead directly send regular payments.

McDonnell said that in May taxpayers had to make their final payments for the 2012 tax year and the first estimated payment for the 2013 tax year.

Sales and use tax collections also grew, by 2.7 percent, while individual income tax withholding fell 1.8 percent.

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