Pennsylvania’s December Revenue Falls Short, But Fiscal Outlook Remains Steady

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HARRISBURG, PA — Pennsylvania’s General Fund revenue for December came in at $3.8 billion, falling short of projections by $87.2 million, or 2.3 percent, according to Revenue Secretary Pat Browne. Despite the slip, the year-to-date collections of $20.2 billion are just 0.5 percent under estimates, leaving state officials optimistic about the fiscal year ahead.

“Six months into the current fiscal year, our revenue collections are nearly right on our estimate,” said Browne. “Our goal is typically to be within 2 percent of our projections, so we are in a very strong position heading into the second half of the fiscal year.”

Key Tax Revenue Breakdown
  • Sales Tax: December collections hit $1.2 billion, $6 million below estimate, but the fiscal year-to-date total of $7.3 billion is 0.3 percent above projections.
  • Personal Income Tax (PIT): December PIT revenue came in $36.6 million under estimates at $1.3 billion. Year-to-date PIT collections of $7.8 billion are 1.3 percent below expectations, the largest gap among key tax categories.
  • Corporation Tax: Business tax revenue for December exceeded projections by $29.7 million at $882.5 million, though year-to-date totals still lag by 1.5 percent.
  • Inheritance Tax: December revenue was $129 million, coming in $31 million short. However, annual collections are still slightly above target by 0.7 percent.
  • Realty Transfer Tax: At $50.5 million for December, it fell $3.4 million below estimates but remains 4.6 percent ahead for the fiscal year.
Other Revenues

Non-tax income took a hit, falling $43 million below December expectations. Meanwhile, revenues from cigarette, liquor, gaming, and other taxes totaled $167.4 million, exceeding monthly projections.

The Motor License Fund, which fuels infrastructure projects through gas and diesel taxes, brought in $211.7 million for December, narrowly missing estimates by $1.5 million. Year-to-date, the fund is 3.8 percent above projections at $1.5 billion.

What It All Means

Though December’s numbers reveal shortfalls in some areas, the state’s overall fiscal position remains steady, with collections mostly aligning with projections. The solid performance in business and realty taxes, along with steady growth in other categories, offsets weaker areas like personal income tax and non-tax revenue.

The slight dip below estimates serves as a wake-up call, but with the fiscal year’s second half ahead, state officials remain confident in Pennsylvania’s budgetary resilience and economic strength.

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