City tax revenue jumps
The city's coffers received an estimated $3 billion in tax revenue, $88 million more than expected, for fiscal year 2016.
Editor's note: This story's online headline has been changed to reflect the correct amount of tax revenue.
The city's coffers received an estimated $3 billion in tax revenue, $88 million more than expected, for fiscal year 2016.
The added cash was a result of an increase in home sales and job growth, according to the city controller's monthly economic report, released Monday.
The report looked at June and also at the full fiscal year, which ended June 30, and compared it with five years prior. Since 2012, city tax revenues have increased 17 percent.
"The overall economic growth in Philadelphia has been the primary driver for the increase in city tax revenues," Controller Alan Butkovitz said in a statement. "Job gains and profitability have boosted wages and earnings, and the surge of home sales has generated record-setting collections for realty transfer taxes."
One of the biggest increases came from the realty transfer tax, which is applied to the sale price of a home when it is sold. (The city receives 3 percent and the state receives 1 percent.) The realty transfer collection went up 16 percent from last year to $236 million this year, double the $119 million that was collected in 2012.
Butkovitz said the increase is the "direct result of surging home sales in various sections of the city," especially in South Philadelphia and sections of the Lower Northeast. Home sales for fiscal year 2016 totaled 15,250, compared with 10,162 in 2012.
The city's predominant tax - the wage, earnings and net profit tax - increased by $64 million in 2016.
While the city's sales tax exceeded its budgeted amount of $149.4 million by almost $10 million, it is still well below the 2012 level of $253.5 million. The city has had to share an additional 1 percent sales tax with the School District since September 2014.
215-854-5520
@InqCVargas