Governor Tom Wolf announced that Pennsylvania’s strong fiscal standing continues to improve month after month, paving the way for investments that will lower costs for Pennsylvanians.
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Pennsylvania collected $6.5 billion in General Fund revenue in April, which was $1.8 billion, or 38.7 percent, over estimate, and the most tax revenue ever collected in a single month. Fiscal year-to-date General Fund collections total $40.7 billion, which is $4.5 billion, or 12.4 percent, above estimate.
“After this month’s collections, Pennsylvania revenues are so far ahead of estimate that we already have the money in the bank to pay for the historic investment I want to make in K-12 education, as well as the Corporate Net Income Tax cut and reforms I have proposed to bolster Pennsylvania businesses,†said Governor Wolf.
“My administration has done a lot of work to get the Commonwealth of Pennsylvania in a good place financially. It has taken a lot of hard work and a lot of years, but our state government is frankly swimming in cash right now and we need to reinvest it in things that will make Pennsylvanians’ lives better.â€
“Frankly, the most irresponsible thing we can do right now is hoard this money when we should use it to help lower costs for Pennsylvanians. I want to make a historic investment in education so local districts have the ability to lower property taxes, and reduce and reform the Corporate Net Income Tax to make Pennsylvania a hub for innovative businesses that will drive further economic growth. I also want to use our state’s federal American Rescue Plan dollars to put money in Pennsylvanians’ pockets right now.â€
If the governor’s proposed budget were implemented in its entirety, there would still be at least a $3.3 billion surplus at the end of Fiscal Year 2022-23. That surplus is on top of and entirely separate from the $2.87 billion that would remain in the state’s Rainy Day Fund and the $2.2 billion in American Rescue Plan funding that Pennsylvania must spend before 2024 or send back to the federal government.
Sales tax receipts totaled $1.2 billion for April, $120.7 million above estimate. Year-to-date sales tax collections total $11.5 billion, which is $888.5 million, or 8.4 percent, more than anticipated.
Personal income tax (PIT) revenue in April was $4.1 billion, $1.4 billion above estimate. This brings year-to-date PIT collections to $15.4 billion, which is $2.1 billion, or 15.4 percent, above estimate.
April corporation tax revenue of $676.1 million was $306.4 million above estimate. Year-to-date corporation tax collections total $5.8 billion, which is $1.1 billion, or 23.7 percent, above estimate.
Inheritance tax revenue for the month was $133.0 million, $22.0 million above estimate, bringing the year-to-date total to $1.3 billion, which is $144.2 million, or 12.5 percent, above estimate.
Realty transfer tax revenue was $77.6 million for April, $25.9 million above estimate, bringing the fiscal-year total to $701.8 million, which is $140.0 million, or 24.9 percent, more than anticipated.
Other General Fund tax revenue, including cigarette, malt beverage, liquor and gaming taxes, totaled $39.8 million for the month, $13.8 million below estimate and bringing the year-to-date total to $1.4 billion, which is $19.7 million, or 1.4 percent, above estimate.
Non-tax revenue totaled $230.6 million for the month, $4.0 million below estimate, bringing the year-to-date total to $4.6 billion, which is $122.3 million, or 2.7 percent, above estimate.
In addition to the General Fund collections, the Motor License Fund received $247.2 million for the month, $36.1 million below 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 $2.3 billion, which is $19.5 million, or 0.8 percent, above estimate. ■