Virginia March revenue up from last year from payroll withholding timing, increase in sales tax revenue

(The Center Square) – Virginia’s revenue in March was up 18.5% from last year, primarily because of payroll withholding timing and a growth in sales and recordation taxes, the governor’s office announced.

March 2021 had one more deposit day than March 2020, which contributed to a 23.7% increase in payroll withholding taxes this year. Sales and use taxes saw an 8.1% increase, which reflect February sales. Recordation taxes were up 58.3%, which was partially because of low interest rates and refinancing causing growth in the housing market.

“As always, the fourth quarter collections will be highly dependent on individual estimated and final payments,” Secretary of Finance Aubrey Layne said in a statement. “The last three months of the fiscal year are significant collections months. In addition to estimated and final payments from both corporations and individuals due in April and May, estimated payments are again due in June. I remind individual taxpayers that their final payment for tax year 2020 is due on May 17th, in tandem with the federal due date. However, the first individual estimated payment for tax year 2021 remains May 1st.”

Total general revenue fund collections are 9% higher this march on a year-to-date basis. This is ahead of the 3% projected growth.

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