Monthly Economic Report: Sales Tax Revenues Post Record-Setting Month

Audit Date: March 27, 2014
Audit Categories
  • Financial
Controller: Alan Butkovitz

Executive Summary

For Immediate Release:
March 27, 2014

Contact: Brian Dries

Sales Tax Revenues Post Record-Setting Month
City Controller’s economic report indicates almost $27 million
was collected in February

February 2014 Economic Report

PHILADELPHIA – City Controller Alan Butkovitz today released his latest monthly Economic Report that indicated sales tax revenues for February totaled almost $27 million, marking the highest single-month collection for the City.

The record-setting monthly collection outpaced the previous high by almost $2 million, which was recorded last February with $25 million. Since the increase in sales tax from seven to eight percent took effect in October 2009, the average monthly collection has been about $21 million.

Sales tax collections recorded in February are typically higher than other months as it reflects the revenues generated during the holiday season. Higher revenues can indicate a positive holiday shopping season for retailers, as well as an overall view that businesses in the region are doing better.

Through the first eight months of the Fiscal Year 2014 (FY2014), the City collected almost $179 million in sales tax revenues into its General Fund. Yearly collections are $6 million, or 3.5 percent, above last year’s collections.

The Controller’s economic report also showed that monthly Wage, Earnings and Net Profits taxes for both the City and PICA totaled almost $128 million, a seven percent increase over the same month last year. Total FY2014 revenues for this tax category totaled almost $1.1 billion, which is a three percent increase over the same period last year.

In addition to reviewing tax revenues, the report indicated that monthly homes sales were down 18 percent from the prior month. There were 601 homes sold with the majority of sales in the neighborhoods of South Philadelphia and the Lower Northeast.