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Tag: Sales tax

Pennsylvania’s General Fund revenue shows pluses, minuses in collections

Pennsylvania’s General Fund revenue in January was less than expected, but the good news is the state’s fiscal year-to-date General Fund collections are above estimate. 

Acting Revenue Secretary Pat Browne reported Thursday that Pennsylvania in January collected $3.6 billion in General Fund revenue, a total that was $205.6 million below what was anticipated. Browne also reported that the fiscal year-to-date collections totaling $23.3 billion are $297.5 million more than estimated. 

Sales tax receipts were higher than anticipated in both January and in fiscal year-to-date figures. January saw sales tax receipts reach $1.3 billion, $11.6 million over estimate.  Fiscal year-to-date sales tax collections climbed to $8.4 billion, $146.4 million more than expected. 

Revenue for personal income tax (PIT) was below expectations in January and for year-to-date (YTD). PIT for January was $1.3billion, $243.7 million below expectations, while PIT for YTD was $9.2 billion, $216.6 million lower than anticipated. 

Corporation tax revenue for January reached $223.4 million, $13.8 million more than expected, and YTD’s corporation tax total $3 billion also exceeds expectations, $342.4 million above estimate. 

January’s inheritance tax revenue was $125.9 million, $4 million above estimate, while YTD is $851.6 million, which is $12.3 million, below estimate. 

Realty transfer tax revenue was down for both the month and YTD. Its January total of $55.5 million is $17.1 million below estimate, bringing the fiscal-year total to $407.4 million, which is $43.8 million less than anticipated. 

Additional General Fund tax revenue, which includes cigarette, malt beverage, liquor, and gaming taxes, totaled $129.0 million for January, $0.2 million above estimate. The YTD total is $1.1 billion, which is $32.3 million, below expectations. 

January’s non-tax revenue totaled $37.9 million, $25.7 million above estimate, and it brings the YTD total to $384.6 million, which is $113.7 million above estimate. 

Along with General Fund collections, the Motor License Fund received $222.2 million for the month, which stands $2.1 million below estimate. Fiscal YTD collections for the fund – which include gas and diesel taxes, as well as other license, fine and fee revenues – total $1.6 billion, which is $22.8 million more than expected.

State revenue in October exceeds expectations by 6.4%

Last month, Pennsylvania collected $3.1 billion in general fund revenue, 6.4% more than anticipated, the Department of Revenue reported.

Fiscal year-to-date general fund collections are $12.9 billion, or 3.1% above estimate.

Among the highlights for October:

· Sales tax receipts were $1.3 billion, or $94.2 million above estimate. Year-to-date sales tax collections total $4.8 billion, or 2.9 percent more than anticipated.

· Personal income tax revenue was $1.3 billion, or $68.7 million above estimate. Year-to-date collections total $5.0 billion, which is $0.5 million more than expected.

· Corporation tax revenue of $183.4 million was $17.4 million above estimate. Year-to-date collections come to $1.5 billion, or 16.1 percent more than anticipated.

· Inheritance tax revenue was $123.3 million, or $2.1 million below estimate. The year-to-date total of $478.4 million is 2.1 percent under estimate.

· Realty transfer tax revenue reached $64.3 million, $0.7 million below estimate, bringing the fiscal-year total to $250 million. That cumulative amount is 5.2 percent more than anticipated.

Other general fund tax revenue, including cigarette, malt beverage, liquor and gaming taxes, generated $156.8 million for the month, $2.1 million below estimate. The year-to-date total of $598.2 million is 1.7 percent less than anticipated.

Non-tax revenue totaled $45.4 million for October, $13.5 million above estimate, bringing the year-to-date total to $155.2 million, which is 35.9 percent more than expected.

In addition to general fund collections, the Motor License Fund received $217.6 million in October. Fiscal year-to-date collections for the fund – which include gas and diesel taxes and other license, fine and fee revenues – are $951.1 million, 0.9 percent above estimate.

Paula Wolf is a freelance writer

Gov. Wolf lifts sales tax prepayment requirements for 3 months

Businesses that collect Pennsylvania sales taxes will not have to make accelerated sales tax prepayments in April, May and June due to income shortfalls from social distancing requirements, Gov. Tom Wolf announced Tuesday.

Businesses that normally have a monthly prepayment requirement will not be charged penalties for missing the next three monthly prepayment deadlines, Wolf said. The state Department of Revenue is asking businesses to remit the sales taxes collected during each prior month on April 20, May 20 and June 22 as any other monthly filer would.

“The spread of COVID-19 has put a tremendous strain on many businesses throughout the commonwealth that collect Pennsylvania sales tax,” Wolf said. “Waiving this prepayment requirement will provide support to our businesses at a time when they are doing their part to help us prevent the spread of the virus.”

Business taxpayers with a tax liability greater than $25,000 in the third quarter of the preceding year are normally required to make monthly sales tax prepayments by the 20th of each month to the state. But since many businesses have had to cease operations if considered not “life-sustaining” under the governor’s emergency response to the coronavirus spread, the state revenue department has eased several tax deadlines this year to help businesses retain cash flow.

The state revenue department has extended the deadline to file state personal income tax returns to July 15, extended the deadline to file information returns related to S corporation, partnerships and estates to July 15 and extended the due date for corporations with tax returns due in May to Aug. 14.

“We will continue to work with Gov. Wolf and members of his administration to consider other steps that we can take to help the business community,” Revenue Secretary Dan Hassell said. “It’s important that we do everything that we can to help businesses during this unprecedented health crisis.”

State revenue up for the year, down for December

The state took in $2.9 billion in general fund revenue last month, which was $91.5 million short of projections, the Pennsylvania Department of Revenue reported.

But even though December’s numbers were roughly 3.1% below expectations, Revenue Secretary C. Daniel Hassell said year-to-date general fund collections of $15.6 billion, $75 million, or 0.5%, above estimates.

Highlights from the December report included:

  • Sales tax receipts: $981.4 million, $6.7 million below estimates. Year-to-date total: $5.8 billion, up $42.7 million, or 0.7%.
  • Personal income tax revenue: $1 billion, up $18.9 million. Year-to-date PIT collection: $6.2 billion, up $93 million, or 1.5%.
  • Corporation tax revenue: $542.2 million, $80.7 million below estimates. Year-to-date: $1.7 billion, down $126.7 million, or 7.1%.
  • Inheritance tax revenue: $94.7 million, $7.7 million below estimates. Year-to-date: $555.7 million, up $14.3 million, or 2.6%.
  • Realty transfer tax: $53.4 million, down $6.1 million. Fiscal-year total: $281 million, down $2.8 million, or 1%.
  • Cigarette, malt beverage, liquor and gaming taxes: $183.2 million, down $1.9 million. Year-to-date: $930.6 million, down $3.4 million, or 0.4%.
  • Non-tax revenue: $24.2 million, down $7.3 million. Year-to-date: $261.5 million, up $57.8 million, or 28.4.
  • In addition to the general fund collections, the Motor License Fund received $206.3 million, up $8.4 million. Year-to-date: the fund, which includes gas and diesel taxes, licenses, fines and fee revenues, $1.4 billion, down $5.8 million, or 0.4%.
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