Jun 3, 2016 - to the sale price, which three percent goes to the. City and one ... and Business Income tax revenues were
Economic Report Financial Forecast & Snapshot
Office of the City Controller
Monthly Feature:
Snapshot Highlights Tax revenues (City & PICA) for June totaled $209 million, which is a three percent increase over last June. A breakdown of the total revenues included $174 million into the General Fund and $35 million as the PICA portion.
The Wage/Earnings and Business Income tax categories posted increases over FY12 of 16.2 percent and 28.2 percent, respectively. A breakdown of these yearly tax revenues indicated that Wage/Earnings were up by almost $200 million and Business Income tax revenues were up almost $110 million.
Page 3 Phila.
Yearly Unemployment Rate
10
MSA U.S.
8 6 4 2
Jun-15 Jul-15 Aug-15 Sep-15 Oct-15 Nov-15 Dec-15 Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16
May-16 City - 6.7% MSA - 5.3% June-16 US - 4.9%
Monthly sales tax revenues for June totaled $11.9 million. This is a less than one percent decrease over the same month last year. Yearly revenues totaled almost $159 million, which is an almost five percent increase over last year.
Apr-16 6.3% 5.0% May-16 4.7%
Change 0.4 0.3 Change 0.2
May-15 7.1% 5.6% June-15 5.3%
Millions of Dollars
unemployment rates are non-seasonally adjusted FY14
170
FY15
140
FY16
110 80
July
Aug.
Sept.
Oct.
Wage/NPT/Earnings (City & PICA Yearly) 28 26 24 22 20 18 16 14 12 10 8
FY13
Monthly City & PICA Wage/Earnings/NPT Receipts
200
(in millions)
Millions of Dollars
The most significant revenue increase over FY12 was realized by the almost doubling of the Realty Transfer Tax collections from $119 million to more than $236 million. This is a direct result of the strong home sales that have occurred in various sections of the City. This tax is levied on the sale or transfer of real estate and applied to the sale price, which three percent goes to the City and one percent to the Commonwealth.
June 2016
Realty Transfer Tax revenues climbs 98% since FY2012; result of significant spike in home sales
Wage/Earnings/NPT (City & PICA) collections for the month totaled $144.7 million, a 5.7 percent increase over the same month last year. Yearly revenues totaled almost $1.9 billion, a six percent increase over FY2015.
Along with reviewing monthly General Fund collections, the economic report reviewed total annual tax collections over the last five years. Total Fiscal Year (FY) 2016 tax revenues were above $3 billion, an increase of $430 million over FY12. Every major tax category posted a double-digit increase over the five-year period, excluding the Sales Tax which the City’s portion was reduced by half to provide additional funds for the School District of Philadelphia.
Alan Butkovitz
Nov.
Dec.
Jan.
Feb.
FY2016 $1,851.8
Mar.
Apr.
May
June
FY2015 $1,752.4
Change 5.7%
Monthly City Sales Tax Receipts FY13 FY14 FY15 FY16
July
Aug.
Sept.
Oct.
(in millions)
Sales (Yearly) -
Nov.
Dec.
Jan.
FY2016 $158.9
Feb.
Mar.
Apr.
FY2015 $151.9
May
June
Change 4.6%
According to PICA, collections for a single month can be a misleading indicator due to monthly variability in collections
Key Indicators 5.7% = increase in 4.6% = Yearly Sales yearly Wage/NPT/ Tax increase over Earnings revenues last year over FY15
13% = monthly home sales up over last June
46.3 = Index up 10 points for future growth among non-manufacturing firms pg.1
Economic Report Financial Forecast & Snapshot
Office of the City Controller
Alan Butkovitz June 2016
Current Employment Data & Forecasted Conditions Nonmanufacturing Business Outlook Survey According to the Philadelphia Federal Reserve’s latest Nonmanufacturing Business Outlook Survey, firms reported significant changes in the hiring of part-time employees and the rising costs associated with wages and benefits.
The Wage and Benefit Costs Index jumped almost eight points from 26.7 to 34.4 over the last month. Almost 38 percent of firms reported an increase in these costs compared to only three that reported a decrease. The majority reported no The Part-Time Employment Index change. increased from 10.3 to 22 over the last month. While the majority of In addition, firms continued to firms indicated no change, more be optimistic about future acthan 32 percent reported an increase tivity over the next six months Chart from the July 2016 Federal Reserve Bank of in part-time hiring compared to 10 as the Diffusion Index for Fu- Philadelphia’s Nonmanufacturing Business Outlook Survey who reported a decrease. The Full- ture Activity at the fir level inTime Index decreased from 18.3 to creased by 10 points from 36.7 to 1.9 over the same period, with the 46.3. This is the highest reading majority of firms also reporting no over the last three months. change. Total Non-Farm Employment (latest data available) May 2016 698,900
April 2016 702,200
Construction
11,700
11,500
Manufacturing
20,900
20,800
Trade, Trans. & Utilities
93,900
93,200
Information
10,800
11,900
Financial Activities
43,700
43,500
Prof. & Business Srvs.
94,300
92,800
Educ. & Health Srvs.
222,500
227,500
Leisure & Hospitality
71,400
70,500
Other Services
27,900
28,200
Government
101,800
102,300
City Total
% Chg.
-0.5% 1.7% 0.5% 0.8% -9.2% 0.5% 1.6% -2.2% 1.3% -1.1% -0.5%
May 2015 684,800 11,500 21,200 91,800 11,700 42,300 90,000 216,900 69,800 27,400 102,200
City of Philadelphia Demographics
Demographic data was compiled from the 2014 American Community Survey
pg.2
Economic Report Financial Forecast & Snapshot
Office of the City Controller
Alan Butkovitz June 2016
City Tax Revenues Up by Double Digits Almost $430 million more into the City’s General Fund Over FY2012 The City of Philadelphia’s economic growth since the Great Recession has not only boosted jobs, wages and leisure spending but it has increased tax revenues by almost 17 percent for the City’s General Fund. Total Fiscal Year (FY) 2016 tax revenues were just above $3 billion, an increase of $430 million over FY12. Every major tax category posted a double-digit increase over the five-year period, excluding the Sales Tax which the City’s portion was reduced by half to provide additional funds for the School District of Philadelphia. The most significant revenue increase over FY12 was realized by the almost doubling of the Realty Transfer Tax collections from $119 million to more than $236 million. This is a direct result of the strong home sales that have occurred in various sections of the City. This tax is levied on the sale or trans-
fer of real estate and applied to the sale price, which three percent goes to the City and one percent to the Commonwealth. The Wage/Earnings and Business Income tax categories posted increases over FY12 of 16.2 percent and 28.2 percent, respectively. A breakdown of these yearly tax revenues indicated that Wage/ Earnings were up by almost $200 million and Business Income tax revenues were up almost $110 million. These types of increases imply strong job growth and profitability. In addition, Real Estate Tax revenues were up by 16 percent over FY12. During this time period, the tax rate was raised for FY14 and FY16 which can be attributed to the increase in overall revenues collected.
City General Fund Tax Revenues FY12 vs FY16 (amounts in thousands) FY12 FY16 % Diff. Major Tax Type Wage, Earnings & Net Profits
$1,211,444
$1,407,292
16.2%
Real Estate
$500,721
$581,853
16.2%
Business Income & Receipts
$389,386
$499,232
28.2%
Sales
$253,523
$158,940 -37.3%
Realty Transfer
$119,364
$236,282
98.0%
$96,007
$116,504
21.3%
$2,570,445
$3,000,103
16.7%
Other Total
Total Revenues by Major Tax Categories FY12 to FY16 $1,600,000 $1,400,000
Wage, Earnings & Net Profits
$1,200,000
Real Estate
$1,000,000
Business & Income & Receipts
$800,000
Sales
$600,000 $400,000
Realty Transfer
$200,000
Other
$0 FY12
FY13
FY14
FY15
FY16*
M onthly H ome S ale D ata June 2016 - Top 10 Sales by Zipcode ZIP Code
Sales
% of Sales from Bank Owned
% of Sales from Short Sales
19146
120
3.30%
0.00
19128
93
2.20%
1.10%
19147
86
0.00%
0.00%
19148
85
1.20%
0.00%
19125
70
0.00%
0.00%
19149
68
4.40%
1.50%
19111
66
4.50%
1.50%
19130
63
1.60%
0.00%
19145
56
3.60%
0.00%
19119
53
5.70%
1.90%
Based on information from TREND for June 2016.
19128
19111
19119
19149
19130
19125
19146 19147 19145 19148
1,738 = Total monthly real estate sales in Philadelphia 13% = increase in monthly sales compared to June 2015 pg.3
