Monthly Economic Report – Monthly Tax Revenues Slightly Weaker than Prior Years

Audit Date: March 3, 2015
Audit Categories
  • Financial
Controller: Alan Butkovitz

Executive Summary

For Immediate Release
March 3, 2015

Contact: Brian Dries

Monthly Tax Revenues Slightly Weaker than Prior Years
City Controller’s economic report includes review of City General Fund
Tax Revenues for January

January 2015 Economic Report

PHILADELPHIA – City Controller Alan Butkovitz today released the latest monthly economic report that indicated monthly City General Fund tax revenues totaled $222 million, a decrease of $2.4 million, or 1.1 percent, from last January.

The combined monthly revenues for the Wage, Earnings and Net Profits tax for the City General Fund totaled almost $124 million, almost $11 million less than January of last year. Sale Tax revenues recorded a drop of almost $9 million over last January, which is a result of additional funding being dedicated to the School District of Philadelphia.

Although there were declines in monthly collections, Business Privilege Tax revenues totaled almost $24 million, a $14 million increase over last January. Realty Transfer Tax revenues also posted an increase of almost $2 million over last year, signaling a stronger home sales market in the city.

This is the second-consecutive January where revenues were below the prior year’s monthly totals. When compared to January 2013, the current monthly total collection is down almost $11 million, or five percent.

In addition to reviewing monthly tax revenues, the Controller’s monthly economic report includes a Neighborhood Spotlight, which reviewed the change in economic conditions in Bridesburg, Frankford and Port Richmond. The number of people employed in these neighborhoods has decreased by more than 2,000 and has lead to an increase of outflow to other parts of the city for work.

Each day 27,862 people leave these neighborhoods to work while 21,788 commute into the neighborhoods. This is an outflow of 6,000 people each day, an increase of 1,150 people since 2002. There are 2,620 people who both live and work in these neighborhoods, which is a decline of 900 people during the same period.