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Date published: 10/16/2002
By BOB LEWIS
Associated Press Writer RICHMOND, Va. (AP) - Virginia revenues took an unexpected 10.2 percent jump in September over collections the same month in 2001 as a result of strong income tax withholding collections buoyed in part by an anomaly from last year’s anthrax scares. The one-month spike was announced the day after Gov. Mark R. Warner cut 1,837 state jobs in trimming $858 million from the state budget. The worst revenue downturn on record has left the state with a budget shortfall exceeding $1.5 billion. It was only the second time in 10 months that monthly revenues have grown and ends the first quarter of the fiscal year that began July 1 with a 1.1 percent rate of growth in general fund receipts over the same period the previous year. September is a key month because that’s when the first estimated quarterly payments of both individual and corporate income taxes are due. Last month’s figures, however, do not account for an additional deposit day over the same month last year and delays in September 2001 resulting from terrorism. Some payment checks did not arrive until October last fall because fears of anthrax spores being sent through the mail caused postal delays. The first quarter growth rate also remains well below the 3.5 percent growth forecast on which the current state budget is based, and far more robust growth will be necessary to meet that target, Finance Secretary John M. Bennett said in his monthly report to Warner. September’s individual income tax withholding receipts, which account for 62 percent of the general fund revenue, grew 10.5 percent, from $457.7 million last September to $505 million, buoyed by the additional deposit day. Nonwithholding estimated individual income tax payments filed by people who do not have taxes withheld by employers, however, decreased by 2.3 percent for the month. Sales tax receipts for the month increased 3.1 percent, and corporate income tax collections increased by about 19 percent.
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