For Immediate Release:
Feb. 24, 2010
Contact: Brian Dries
Sales Tax Collections Fall Short of City’s Mark
Controller’s economic report shows $18.2 million
in sales tax collections not enough
PHILADELPHIA – City Controller Alan Butkovitz today released the monthly economic report that found the City collected $18.2 million in sales tax for January, falling short of the City’s projected figure by at least $2 million.
While the amount collected is a 60 percent increase from January 2009 due to the one percent sales tax increase, it should have been at or more than $20 million. The sales tax revenues now must average approximately $24 million a month through the end of the fiscal year to meet revised projections of $207 million.
Along with a look at sales tax collections, the economic report indicated that manufacturing is helping to lead Philadelphia’s economy out of the recession, and conditions will remain favorable as demand increases, exports gain momentum, and financial market conditions improve. Increases in capital expenditure plans and durable goods orders should gather momentum and ultimately translate into solid gains in equipment investment this year.
The Economic Snapshot and Monthly Forecast are compiled by the Financial and Policy Analysis staff. The City Controller’s office circulates these documents on a monthly basis to assist key decision makers in understanding and anticipating local and national economic trends.
The Monthly Economic Snapshot presents key economic data for the United States, the Greater Philadelphia Region, and the City of Philadelphia. The Monthly Economic Forecast Review is a collection of projections from prominent economic institutions and an analysis of their forecasts of future economic performance. These two documents together — the Snapshot and the Forecast Review — are a useful tool for policy makers and analysts in understanding our city’s and country’s economy.