General Fund Revenue Report - March 2022

By Eric Dice , Assistant Executive Director | one month ago

General Fund revenues in March exceeded the official estimate by $659.1 million. With nine months of the fiscal year now complete, year-to-date revenues are $2.66 billion above the official estimate, or 8.5 percent.

March is a major month for business taxes, as several specific taxes on certain businesses are almost entirely paid in March, as well as the first quarterly payment for many corporate net income taxpayers.

Of the special business taxes collected last month, insurance premiums tax collections were $49.2 million above estimate, while financial institutions taxes were $26.6 million higher than expected. The largest of these taxes, the gross receipts tax, was $30.3 million below estimate for March; however, some revenue arrived a little early in February. Total gross receipts tax collections for the year to date right in line with the official estimate, 0.4 percent higher than expected, or $4.2 million.

Sales tax and the personal income tax both continued to outperform the official estimate in March. Sales taxes were $208.1 million higher than expected, and the personal income tax was $158.6 million more than projected.

Looking Ahead

Looking ahead, many Pennsylvanians will file their annual tax returns in April, so PIT final payments are the big thing to watch next month. Corporations will also file their annual returns for the CNIT, with those final payments being primarily spread across April and May. Quarterly estimated payments for the PIT are also due in April. These large tax collections will help solidify the revenue picture through the end of the 2021/22 fiscal year as policymakers continue to work on next year’s budget.

On the expenditure side, the current expiration of the federal public health emergency is April 16, which affects the enhanced FMAP received by the commonwealth to pay for Medical Assistance costs. We continue to await word on whether the emergency will be extended again. The governor’s executive budget assumes that enhanced FMAP will sunset on June 30, 2022, so additional extensions have the potential to impact next year’s budget.

For March

  • Total General Fund collections were $659.1 million higher than expected (13.5 percent)
  • General Fund tax revenues were $617.2 million higher than anticipated (13.0 percent)
  • The corporate net income tax was $141.4 million higher than expected (28.8 percent)
    • Quarterly estimated payments were $115.8 million higher than expected (35.7 percent)
  • Sales and use tax collections exceeded projections by $208.1 million (22.5 percent)
    • Non-motor collections were $166.4 million higher than projected (21.5 percent)
    • Motor vehicle collections were $41.8 million above estimate (28.2 percent)
  • Personal income tax collections were $158.6 million higher than the official estimate (11.2 percent)
    • Employer withholdings on wages and salaries were $92.6 million higher than anticipated (7.7 percent)
    • Non-withheld collections on other income were $66.0 million above estimate (29.9 percent)
  • Realty transfer tax revenues were $21.8 million above estimate (41.1 percent)
  • Inheritance tax collections were $31.4 million higher than estimated (24.6 percent)
  • Non-tax revenues were $42.0 million above the official estimate (27.9 percent). Escheats revenue was the key driver of non-tax performance last month, exceeding estimate by $38.8 million.

For the 2021/22 Fiscal Year to Date

  • Cumulative General Fund revenues are $2.66 billion higher than expected (8.5 percent)
  • General Fund tax revenues were $2.5 billion higher than projected (9.3 percent)
  • Corporate net income tax revenues are $726.7 million more than expected (28.8 percent)
  • Sales and use taxes are $767.7 million more than expected (8.1 percent)
  • Personal income tax collections are $687.6 million higher than anticipated (6.5 percent)
  • Realty transfer taxes are $114.2 million above estimate (22.4 percent)
  • Inheritance taxes are $122.2 million better than projected (11.7 percent)
  • Non-tax revenues are $126.3 million above the estimate (3.0 percent)

 

General Fund Revenues - Year-to-Date Performance vs Official Estimate
Through February 2021
  YTD Estimate YTD Revenues Difference
Corporation Taxes
Accelerated Deposits $0.0 −$1.3 −$1.3
Corporate Net Income Tax $2,522.6 $3,249.3 $726.7
Gross Receipts Tax $1,014.3 $1,018.5 $4.2
Utility Property Tax $2.1 $1.9 −$0.2
Insurance Premiums Taxes $415.2 $456.5 $41.3
Financial Institutions Taxes $393.2 $433.1 $39.9
Subtotal - Corporation Taxes $4,347.4 $5,158.0 $810.6
Consumption Taxes
Sales and Use Tax $9,513.3 $10,281.0 $767.7
Cigarette Tax $742.7 $727.6 −$15.1
Other Tobacco Products $106.5 $111.5 $5.0
Malt Beverage Tax $17.0 $16.4 −$0.6
Liquor Tax $325.3 $325.5 $0.2
Subtotal - Consumption Taxes $10,704.8 $11,462.0 $757.2
Other Taxes
Personal Income Tax $10,538.5 $11,226.1 $687.6
Realty Transfer Tax $510.1 $624.3 $114.2
Inheritance Tax $1,041.3 $1,163.5 $122.2
Gaming $211.9 $230.5 $18.6
Minor and Repealed −$97.1 −$71.8 $25.3
Subtotal - Other Taxes $12,204.7 $13,172.6 $967.9
 
Non-Tax Revenue $4,221.0 $4,347.3 $126.3
General Fund Total $31,477.9 $34,140.0

 

General Fund Revenue Report - March 2022

By Eric Dice , Assistant Executive Director | one month ago

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