Va. tax revenues up 4.1 percent last month over one year ago
Tax revenues continued to slowly grow in September, state officials said Wednesday, a sign that the state's economy is perking up after the deep economic downturn.
Collections grew by 4.1 percent in September 2010, compared to September a year ago, making September the sixth out of the last seven months in which revenue grew this year over last. State officials said withholding taxes grew 6.8 percent over last year's numbers, while corporate income tax grew 13.8 percent. Sales taxes grew at a more modest 2.1 percent.
Adjusting for the accelerated sales tax program in June, total state revenues through September have grown 3.6 percent for the year, trailing projections of 4.2 percent.
In a statement, McDonnell said the revenue contained good news about the state's economy.
"The growth in revenue derived from withholding, corporate income and sales taxes is good news for the Commonwealth," he said in a statement. "It demonstrates increased activity in key areas of our economy. While year-to-date revenue growth slightly lags the base forecast, that difference has narrowed over the past few reports."
But McDonnell cautioned against too much optimism.
"This monthly report has a number of positive components, but it in no way indicates that we have emerged from the economic downturn that has impacted every Virginian over the past two years," he said. "Credit remains too tight and the unemployment rate remains too high. Any true and lasting economic recovery will only be possible through sustained private-sector job creation and investment. Our Administration is committed to creating the policy environment in which that can occur."
| October 13, 2010; 6:10 PM ET
Categories: Robert F. McDonnell, Rosalind Helderman
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