Virginia tax revenues spike upwards sharply in May

Virginia tax revenues spike upwards sharply in May

RICHMOND—Governor Ralph Northam today announced that total General Fund revenues rose 66.2 percent in May, the largest monthly revenue increase in more than 50 years. Over 85 percent of the growth in May can be attributed to a return to normal tax filing dates for estimated payments and a shorter extension this year for individual final payments. Governor Northam also announced the appointment of Joe Flores as Secretary of Finance and Carter Hutchinson as Deputy Secretary of Finance.
May is typically a significant month for revenue collections. In addition to regular collections of withholding and sales taxes, estimated and final payments for individuals are normally due May 1, however, last year the filing date was extended to June 1. This year, the due date for final payments was moved to May 17 to align with the federal due date. To accurately assess growth, data for the entire quarter of April through June will be needed.
“Virginia’s economy is roaring back to life thanks to hard work following the science and one of the strongest pandemic responses in the country,” said Governor Northam. “New COVID-19 cases are at record lows, our vaccination rates are among the nation’s highest, and Virginians  are heading back to work—and these record revenue gains are the result. Our responsible governance is paying off, and we will keep this up as we approach a new budget year and face major decisions about how to best use federal funding from the American Rescue Plan.

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