State revenue growth loses steam in April as income tax payments lag
Virginia is still likely to end the fiscal year in the black, but revenues dropped in April, including an unforeseen lag in income tax payments that aren’t withheld from paychecks.
Total revenues fell by 3.4 percent compared with the same month a year ago, but that’s not what most concerns budget officials. They’re wondering why estimated and final income tax payments from nonwithholding fell almost 18 percent in the month and 4.2 percent for the year to date.
“It’s probably weaker than we’d like to see,” Secretary of Finance Richard D. “Ric” Brown said in an interview.
State revenues had come out of March strong, growing 4.6 percent for the first nine months of the fiscal year compared with an annual projection of 2.9 percent. The results in April dropped the growth rate for the year to 3.6 percent.