City of Philadelphia Tax Revenue Update for
Through May, FY16 General Fund tax collections increased 7.2 percent compared to the same period in FY15. For all major City taxes, with the exception of the sales tax, year-to-date revenue growth exceeds the currently-projected growth rate for FY16
According to the City’s preliminary revenue report, FY16 General Fund tax collections through May totaled $2.826 billion, an increase of 7.2 percent from the same period in FY15. The current estimate for FY16 General Fund tax revenue is $2.936 billion, an increase of 5.7 percent from FY15. (See Table 1.)
Year-to-date growth for the City’s share of the local sales tax is somewhat below the currently-projected growth rate for the fiscal year. Through May, revenue increased 5.1 percent compared to the prior year, below the currently projected FY16 growth of 14.3 percent. This gap likely reflects accounting policies and the allocation of revenue between the City and School District of Philadelphia (SDP). Actual City sales tax revenue in FY16 will reflect revenues received through the end of August, due to accruals. In addition, the City’s share of the tax should increase after the SDP share for FY16 reaches the maximum annual allocation of $120 million.
Read the full report here.