Virginia revenues rose 2.6 pct in Sept from year ago

Reuters

WASHINGTON, Oct 11 (Reuters) - Virginia's revenues rose 2.6percent in September from the same month in 2012 as a result ofa strong inflow of corporate and individual income taxes,Governor Bob McDonnell said on Friday.

Corporate income taxes were up 16.7 percent from September2012, individual withholding rose 2.9 percent, and theindividual tax payments that are not withheld from paychecksgrew 2.1 percent. Conversely, sales taxes fell 2.7 percent.

Individuals and corporations make their first estimated taxpayments of the fiscal year in September.

For the fiscal year that started in July, revenues are up2.8 percent, ahead of the annual forecast of 1.5 percent growth.

Still, McDonnell sees storm clouds ahead. The state is hometo many federal workers who have been furloughed without pay asCongress fights over a spending resolution. They may receiveback pay after the shutdown ends.

"The ongoing federal government shutdown will have a directnegative impact on state revenues in the months ahead, just asit is already having a direct, negative impact on Virginians intheir daily lives," said McDonnell in a statement. "The successof our Commonwealth is being threatened by the ineptness ofWashington."

At the same time, the state is considered especiallyvulnerable to the federal spending cuts known as sequestrationbecause of the military presence there as well as heavy federalspending on contracts and salaries.

View Comments