PA says revenue generation at 2.6% higher than expected, still within forecast range

04 March 2024- Pennsylvania collected $2.8 billion in General Fund revenue in February, which was $69.5 million, or 2.6 percent, more than anticipated, Revenue Secretary Pat Browne reported today. Fiscal year-to-date General Fund collections total $26.5 billion, which is $76.1 million, or 0.3 percent, above estimate. This amount is within the range (2 percent) the Department of Revenue strives for with its year-to-date revenue forecasts.

“Our revenue collections for the current fiscal year are currently above estimate, which is a great place to be in as budget negotiations get underway. We’re also seeing many positives with specific tax collections that bode well for the future,” said Secretary of Revenue Pat Browne. “At the same time, many economic forecasters who were predicting the U.S. economy to fall into a recession have shifted their viewpoints and now have much more optimistic outlooks. This is all positive news that reinforces the fact that now is the time to act on the important investments Governor Shapiro is proposing.”

Sales tax receipts totaled $1.0 billion for February, $36.7 million above estimate. Year-to-date sales tax collections total $9.5 billion, which is $9.5 million, or 0.1 percent, more than anticipated. Sales tax receipts are over estimate in part due to a larger than expected effect of a change in payment frequency. At the start of each calendar year, the Department can make changes to how often entities are required to pay sales & use tax based on their remittances the prior year.

Personal income tax (PIT) revenue in February was $1.2 billion, $40.6 million above estimate. This brings year-to-date PIT collections to $10.5 billion, which is $265.4 million, or 2.5 percent, below estimate. PIT withholding receipts also had a larger than expected impact from the change in filing frequency.   

February corporation tax revenue of $205.9 million was $42.9 million below estimate. Year-to-date corporation tax collections total $3.2 billion, which is $88.8 million, or 2.9 percent, above estimate.

Inheritance tax revenue for the month was $140.7 million, $0.5 million below estimate, bringing the year-to-date total to $1.0 billion, which is $48.1 million, or 5.0 percent, above estimate.

Realty transfer tax revenue was $37.6 million for February, $11.9 million above estimate, bringing the fiscal-year total to $338.6 million, which is $2.6 million, or 0.8 percent, more than anticipated.

Other General Fund tax revenue, including cigarette, malt beverage, liquor, and gaming taxes, totaled $141.2 million for the month, $5.4 million below estimate, bringing the year-to-date total to $1.1 billion, which is $52.6 million, or 4.5 percent, below estimate.

Non-tax revenue totaled $66.0 million for the month, $29.1 million above estimate, bringing the year-to-date total to $805.3 million, which is $245.1 million, or 43.7 percent, above estimate.

In addition to the General Fund collections, the Motor License Fund received $235.6 million for the month, $3.4 million above estimate. Fiscal year-to-date collections for the fund – which include the commonly known gas and diesel taxes, as well as other license, fine and fee revenues – total $2.0 billion, which is $14.4 million, or 0.7 percent, above estimate.