RICHMOND, Va. (WWBT) - Virginia ended the fiscal year with a budget surplus of more than $700 million.
Gov. Ralph Northam announced revenue collections rose by 7.2 percent for the fiscal year, outpacing the forecasted increase of 3.3 percent.
Northam said preliminary numbers indicate a total budget surplus in the general fund of approximately $778 million.
The reason for the increase is largely due to nonwithholding income tax collections and lower individual income tax refunds. As a result of the federal Tax Cuts and Jobs Act, $450 million that was not anticipated was included in the forecast was collected in the general fund. Despite not being included in the forecast, that revenue was expected.
State tax refunds were $272.9 million below expectations due to the changes in the federal tax law. That change also resulted in a 9.5 percent increase in corporate income tax collections.
The official certification of revenue will be Aug. 20.
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