Virginia ends fiscal year in record-breaking $2.6 billion surplus

Published: Jul. 14, 2021 at 3:30 PM EDT
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RICHMOND, Va. (WWBT) - Virginia has ended the fiscal year 2021 with a $2.6 billion surplus which is the largest in the state’s history.

“We have effectively managed Virginia’s finances through the pandemic, and now we are seeing the results-record-breaking revenue gains, a recovery that has outpaced the nation, and recognition as the best place to do business,” stated Governor Ralph Northam.

Compared to 2020 total revenue collected was 14.5 percent over and the forecast growth percent is 2.7.

About half of the surplus can be attributed to non-withholding taxes, however, collection in payroll withholding, sales and corporate income taxes were above their expected forecast.

“We expected a strong revenue performance and this surplus is even larger than initially anticipated,” said Secretary of Finance Joe Flores. “We are encouraged that for the fiscal year, payroll withholding and retail sales taxes increased by 6.4 percent signifying that Virginia’s underlying economic foundation is strong.”

Virginia’s revenue decreased in June by $180.8 million which is attributed to the extension of the individual income tax filing deadline to May 17.

The final fiscal year figures will be released on Aug. 18.

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