PA tax haul for December is less than anticipated BUT still within expected forecasts

03 January 2024- Pennsylvania collected $3.7 billion in General Fund revenue in December, which was $69.6 million, or 1.8 percent, less than anticipated, Revenue Secretary Pat Browne reported today. Fiscal year-to-date General Fund collections total $19.8 billion, which is $70.7 million, or 0.4 percent, below estimate. This amount is within the range (2 percent) the Department of Revenue strives for with its year-to-date revenue forecasts.

Sales tax receipts totaled $1.2 billion for December, $9.1 million above estimate. Year-to-date sales tax collections total $7.2 billion, which is $116.2 million, or 1.6 percent, less than anticipated.

Personal income tax (PIT) revenue in December was $1.3 billion, $32.6 million below estimate. This brings year-to-date PIT collections to $7.5 billion, which is $122.7 million, or 1.6 percent, below estimate.         

December corporation tax revenue of $889.5 million was $50.4 million below estimate. Year-to-date corporation tax collections total $2.7 billion, which is $83.5 million, or 3.2 percent, above estimate. Corporation Tax collections in December are primarily Corporate Net Income Tax (CNIT) estimated payments from tax year 2023, which is the first year of the CNIT rate phasedown. The year-over-year growth rate of -12% is slightly larger than the effect from the 10% cut in the rate (to 8.99% from 9.99%). This could imply that taxpayers had overpaid earlier in the year or that profits for 2023 were weaker than expected.

Inheritance tax revenue for the month was $117.9 million, $0.8 million above estimate, bringing the year-to-date total to $769.7 million, which is $62.1 million, or 8.8 percent, above estimate.

Realty transfer tax revenue was $45.4 million for December, $0.8 million below estimate, bringing the fiscal-year total to $253.5 million, which is $14.4 million, or 5.4 percent, less than anticipated.

Other General Fund tax revenue, including cigarette, malt beverage, liquor and gaming taxes, totaled $162.1 million for the month, $2.9 million below estimate and bringing the year-to-date total to $865.6 million, which is $42.9 million, or 4.7 percent, below estimate.

Non-tax revenue totaled $55.5 million for the month, $7.1 million above estimate, bringing the year-to-date total to $553.7 million, which is $79.8 million, or 16.8 percent, above estimate.

In addition to the General Fund collections, the Motor License Fund received $235.7 million for the month, $15.4 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 $1.6 billion, which is $5.4 million, or 0.3 percent, above estimate.