Virginia posted a 7.8 increase in revenues in August compared to last year, Gov. Bob McDonnell announced Thursday.
Individual income tax withholding jumped by 13.3 percent, while non-withholding — or final payments based on 2010 tax liabilities — increased nearly 25 percent.
August, though not a significant month for revenue collections, was the 17th month out of the last 18 months that Virginia saw an increase in collections over the previous year.
As he has in the past, the governor tempered the news with words of caution.
“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,” he said. “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. More than 250,000 Virginians are still out of a job, and that is tragic and unacceptable. There are tough days still ahead, and we know that the road back to economic prosperity for all our citizens will be a long and winding one.”