Despite supply chain challenges and inflationary pressures, the state has never collected more tax revenues, according to the Pennsylvania Department of Revenue in its announcement of April 2022 collections. April is the biggest tax collection month as individuals and businesses file their annual tax returns.
According the Revenue, the state collected $6.5 billion in general fund revenue last month, more than $1.8 billion, or nearly 39 percent, above estimate. This is the most revenue the state has ever collected in a single month. Year-to-date General Fund collections total $40.7 billion, which is $4.5 billion, or 12.4 percent, above estimate. Sales tax receipts and collections for personal income tax, corporate tax, inheritance tax and realty transfer tax were all substantially above estimate for the month and year.
In a statement, Gov. Wolf pointed to the above-estimate receipts as providing sufficient revenue to cut the Corporate Net Income tax, in addition to his proposed budget which would significantly increase education spending and other entitlements. A spokesman for the House GOP cautioned that a contracting national economy and inflation point to potential future economic troubles, and that with that in mind, the legislature and Governor will have to come together this June on a “fiscally responsible spending plan.”
The news on record tax collections come on the heels of the House of Representative passing legislation, 195-8, in the final week of April that would provide for an immediate one-point reduction in the CNI, with an additional point by 2025 pending sufficient revenue collections.