March 2024 – Municipal Money Matters

Report Categories
  • Financial

Executive Summary

Philadelphia Beverage Tax Eclipses $500 Million in Revenue

As 2024 begins, the Philadelphia Sweetened Beverage Tax starts its eighth year of existence. To date, the Philadelphia Beverage Tax (PBT) has raised over $518M in revenue for the city. The City has collected more than $73M in revenue each year from the PBT, except in FY20 and FY21 when the city collected about $70M each year. The yearly average is $73.8M.

The largest program supported by the Philadelphia Beverage Tax is PHLPreK. In the first six months of the program, there were 2,000 slots at a cost of $5,100 per slot. The first full year of the program started on July 1, 2017. That year there were again 2,000 slots but the cost increased to $8,500 per slot. By this fiscal year FY24, it has grown to $10,000 a slot with 5,250 slots. The yearly cost covers ten months of schooling. Office of Philadelphia Controller Christy Brady Additionally, Rebuild has completed 17 total projects. In 2018, Philadelphia issued a$79M bond for Rebuild and is expected to pay back an additional $47M over 20 years indebt service for a total of $126.4M in total costs.

Municipal Money Matters is a monthly report from the City Controller’s Policy Unit aimed at highlighting where and how Philadelphia spends its dollars. This March edition is focused on the PBT’s revenue and expenditures since its inception in 2017 through January 2024.