Ahead of the most important tax collection months of the year fo states, Virginia is seeing signs that people are earning and spending more.
Tax revenue was up 7.6 percent in March compared to last year, including increases in the sales and income taxes. Overall, revenue collections are exceeding expectations, with year-to-date increase of 5.3 percent compared to the forecasted 4.6 percent.
With Tuesday’s tax-filing deadline, April and May are typically the most important months for states to assess their fiscal health. But Monday’s announcement, coupled with the state’s relatively low 5.7 percent unemployment rate, provided further proof that the economy is turning around.
“More Virginians are working today, and this is a bipartisan accomplishment,” Gov. Bob McDonnell said. “It is good news, but there is much work left to be done before all Virginians will have the good work they need and deserve.”
Sales tax collections were up 11.1 percent over last year and have risen 5.7 percent in 2012, significantly higher than the projected growth rate of 1.8 percent. Corporate income tax revenue is up 16 percent compared to last March and individual income taxes improved by 5.9 percent in the same timeframe.
