Economic Report – City Tax Revenues Up $200 Million Over Last Year

Audit Date: July 29, 2013
Audit Categories
  • Financial
Controller: Alan Butkovitz

Executive Summary

For Immediate Release:
July 29, 2013

Contact: Brian Dries

City Tax Revenues Up $200 Million Over Last Year
City Controller’s economic report includes review of fiscal year-end
general fund tax revenues

June 2013 Economic Report

PHILADELPHIA – City Controller Alan Butkovitz today released his latest economic report that indicates City General Fund tax revenues for fiscal year 2013 (FY2013) totaled more than $2.7 billion, an increase of $200 million over the previous fiscal year.

The FY2013 tax revenues were an eight percent increase over the FY2012 collection of just over $2.5 billion. Almost every city tax increased over the prior fiscal year, including the realty transfer tax by almost $28 million, or 24 percent. The increase is reflective of the boost in home sales over the same period, as the tax is levied on the sale or transfer of real estate located in Philadelphia.

Other tax revenue increases came from the business privilege tax (19 percent), tobacco (16 percent), and real estate (eight percent).

While the majority of tax revenues increased over the prior fiscal year, a few revenues did decline such as the amusement tax and valet tax with decreases of 14 percent and two percent, respectively. The lower amusement tax can be attributed to Philadelphia’s professional sports teams not entering post-season play, which results in less ticket sales. The five percent tax is imposed on the admission fee charged for attending any amusement event in the City, including concerts, movies and athletic events.

Along with including a review of the city general fund tax revenues, the Controller’s economic report showed that there were 1,200 total monthly home sales for June 2013. This was an increase of almost 19 percent over last year. The majority of sales occurred in South Philadelphia, Fairmount, Roxborough and Fishtown.

The Controller’s economic report indicates is compiled on a monthly basis and includes an Economic Snapshot and Forecast, as well as real estate information and other local statistics. These reports are circulated every month to assist key decision makers in understanding and anticipating local and national economic trends.