Gov. Bob McDonnell announced Thursday that state tax collections in August increased by 7.8 percent over the previous year. It is the 17th month out of the last 18 in which revenue collections exceeded the previous year’s amount.
The rise was primarily driven by a growth in individual income tax withholding and an increase in non-withholding receipts.
But receipts for sales tax and corporate income tax fell.
Two months into the fiscal year, total revenue collections have risen 8.8 percent, ahead of the revised annual forecast of 3.7 percent growth.
“Following the closure of the fiscal year with our second straight surplus, revenue indicators continue to demonstrate that Virginia’s economy continues to gradually show some signs of improvement,” McDonnell (R) said in a statement. “The fact is, while Virginia’s economy continues to recover, we still have not fully turned the corner from the deep and long-lasting downturn that has impacted every Virginian.”