Corporate net income tax collection down for Q2, up for year to date
Corporate net income tax collections in Pennsylvania missed the mark by $80 million in the second quarter, according to a report from the state Independent Fiscal Office.
However, those collections for the year to date are above projections by about $42 million, according to the report from the office, which makes revenue projections for use in the state budget process along with impartial and timely analysis of fiscal, economic and budgetary issues to assist commonwealth residents and the General Assembly in their evaluation of policy decisions.
The state took in $855 million in corporate net income taxes for the quarter on a projection of $935 million. For the year so far, the state has collected $2.5 billion in corporate net income taxes on a projection of $2.4 billion, according to the report.
“Despite strength in estimated payments, a substantial decline in final payments resulted in a negative quarterly growth rate,” according to the IFO. “Estimated payments were weak early in the fiscal year, but they recovered enough in the last quarter to display a modest increase for the fiscal year. Final payments demonstrated growth for the fiscal year despite the drop in the last quarter.”
On the whole, the state’s general fund stood at about $8.1 billion for the second quarter, missing the $8.4 billion estimate by about $349 million. But for the fiscal year, the fund was at about $28.6 billion, about $547 million below the projection.
In addition to corporate net income, the report looked at all other tax revenues, including sales and use and personal income, according to the report.