State revenues collections decline in February

Virginia’s February revenue collections declined by 2 percent from the same the prior year mainly because of one fewer deposit day.

On a year-to-date basis, total revenue collections rose 5.5 percent through February, ahead of the annual forecast of 3.6 percent growth. February is not generally a significant month for revenue collections, state officials said.

The revenue decrease was primarily driven by withholding (a decline of 5.7 percent) and nonwitholding (down 14.5 percent) collections.
Sales tax revenues, which include the final post-holiday sales and gift card purchases, rose 10.3 percent in February. Adjusted for the accelerated sales tax program, total state revenues grew 5.1 percent through February, slightly ahead of the forecast of 3.4 percent growth.

“While overall economic indicators continue a trend of progress and recovery, this month’s decline in revenue reminds us that our future economic growth is still insecure and uncertain,” Gov. Bob McDonnell said in statement. “Virginia continues to fare better than neighboring states. Our unemployment rate is the lowest in the state in four years, the lowest in the Southeast, and the second-lowest east of the Mississippi.”