Virginia posted a 16.7 percent increase in revenue collections in February compared to last year, as the state continues to climb out of the throes of the economic downturn.
February marked the eleventh month in the last 12 in which revenue collections have increased over the previous year. Year-to-date, collections are up 4.1 percent, slightly ahead of the revised annual forecast of 4 percent.
“We are continuing to see clear signs that Virginia’s economy has begun to turn the corner,” said Gov. Bob McDonnell. “Last week, we announced that the seasonally adjusted unemployment rate in Virginia has fallen to a two-year low. Today, we are announcing another month of positive revenue numbers. The economic trend in the commonwealth is positive and it is increasingly consistent.”
The increase was driven primarily by a 10.6 percent increase in withholding and a 6.4 percent increase in sales tax collections.
“While we recognize the recent good news, we cannot lose sight of the fact that this recovery is still fragile and early,” McDonnell said. “Until every Virginian can find a good-paying job to support their family, our work is not over.”
