On June 1, the Department of Revenue reported state revenue in May was $439.7 million, or 17.3 percent, less than anticipated. Fiscal year-to-date General Fund collections total $29.6 billion, which is $2.6 billion, or 8.2 percent, below estimate.

The department estimates that approximately $199.8 million of the $439.7 million shortfall in May can be attributed to moving due dates for various taxes.

The remaining $239.9 million of the May shortfall is due to reduced economic activity during the COVID-19 pandemic.

“Although we are certainly seeing the effects of the pandemic reflected in the commonwealth’s revenue collections, it’s also important to recognize that a significant portion of the shortfall in May can be attributed to moving several tax deadlines to provide relief to Pennsylvania taxpayers during the pandemic,” Revenue Secretary Dan Hassell said. “We expect to receive much of this revenue in the next fiscal year, which means we’ll have a clearer picture of the pandemic’s effect later in the year.”

The Independent Fiscal Office released a similar report showing May revenue was below their estimates by $502.6 million of which $430 million was the result of lost economic activity, $70 million loss due to the extended tax due dates.  Read more here.

Dept. Of Revenue

Here is a full overview of May revenues by tax type:

Sales tax receipts totaled $699.1 million for May, $282.9 million below estimate. Year-to-date sales tax collections total $9.8 billion, which is $576.1 million, or 5.5 percent, less than anticipated.

Personal income tax (PIT) revenue in May was $947.2 million, $44.8 million above estimate. This brings year-to-date PIT collections to $11.8 billion, which is $1.5 billion, or 11.2 percent, below estimate.

May corporation tax revenue of $145.6 million was $164.7 million below estimate. Year-to-date corporation tax collections total $4.4 billion, which is $560.9 million, or 11.2 percent, below estimate.

Inheritance tax revenue for the month was $69.1 million, $26 million below estimate, bringing the year-to-date total to $1 billion, which is $3.7 million, or 0.4 percent, above estimate.

Realty transfer tax revenue was $33 million for May, $18.1 million below estimate, bringing the fiscal-year total to $464.7 million, which is $31.5 million, or 6.4 percent, less than anticipated.

Other General Fund tax revenue, including cigarette, malt beverage, liquor and gaming taxes, totaled $159.6 million for the month, $20.1 million below estimate and bringing the year-to-date total to $1.4 billion, which is $55.3 million, or 3.8 percent, below estimate.

Non-tax revenue totaled $51.9 million for the month, $27.2 million above estimate, bringing the year-to-date total to $629.5 million, which is $69.8 million, or 12.5 percent, above estimate.

In addition to the General Fund collections, the Motor License Fund received $220.9 million for the month, $59.4 million below estimate. Fiscal year-to-date collections for the fund — which include the commonly known gas and diesel taxes, as well as other license, fine and fee revenues — total $2.4 billion, which is $180.3 million, or 6.9 percent, below estimate.

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[Posted: June 1, 2020]

6/8/2020