Pennsylvania posts historically strong state revenue collections
Pennsylvania’s Independent Fiscal Office is reporting historically strong state revenue collections through the first quarter of the fiscal year.
The state generated over $200 million more than was expected since July.
Much of the growth came from an overachieving September, when corporate net income tax, and sales and use tax each generated much more than expected.
Matthew Knittle, Director of the IFO, cites the federal tax overhaul as a key reason.
“The way we see that at the state level, is we see a large gain in our tax revenues, because although the income shifted, the state income tax rate did not change,” he said. “So we see a pickup, we think, from corporations shifting money from one year to the next.”
Through the first quarter, the corporate net income tax performed 31.6% higher than expected, with the sales and use tax coming in 8.9% higher.
Knittle says Pa. has not seen quarterly figures this large in over a decade, though he expects the numbers to come back down to estimated levels at next check.
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