Pennsylvania Taxes

Municipal Distress Getting Worse In Pennsylvania, According To New Data

Sep 13, 2017
Pennsylvania Economy League

The Pennsylvania Economy League released a report on Tuesday showing predictions in its last study have borne out.

That's not a good thing.

The league warned in 2007 that the struggles of distressed communities would worsen where they already existed and emerge anew elsewhere — unless local government codes were updated by state lawmakers.

Gov. Tom Wolf / Flickr

The revenue component of the state budget still isn’t done, more than a month past its due date.

But that doesn’t mean Pennsylvania has stopped doing business. It’s still spending and taking in money, and it’s still releasing monthly reports on how state collections are stacking up against projections.

The only problem? Because there’s no revenue plan, analysts can’t estimate exactly how much the state should be taking in.

Sarah Kovash / 90.5 WESA

A portion of the state Senate’s latest, tax-heavy plan to balance the commonwealth's budget is likely to prompt some legal entanglement.

Senators’ proposal to expand how the commonwealth’s sales tax is applied to online transactions is modeled on similar attempts by other states.

Those states are already facing lawsuits.

If the measure passes the House and governor, it would require online marketplaces—like Amazon—to charge sales tax on items they sell via third-party vendors.

The move is expected to net more than $40 million annually.

Jay LaPrete / AP

Time is running out for the millions of Pennsylvania eligible for a delinquent tax amnesty program being offered by the state.

The state legislature created the program as part of the 2016-17 budget with the expectation of collecting an additional $100 million in back taxes.  That’s on top of the roughly $600 million in back taxes collected each year by the Pennsylvania Department of Revenue.

Under the program, the state will waive the 5 percent penalty and half of the interest.

Pennsylvania Sees Biggest Shortfall Since Recession

May 2, 2017
Sarah Kovash / 90.5 WESA

Pennsylvania is heading into the 2017 budget season with its biggest revenue shortfall since the recession.

The state Department of Revenue is reporting that it has a shortfall in excess of $1 billion, now 10 months into the fiscal year. That's more than 4 percent, a bigger margin than at any point since 2010.

It leaves budget makers with an even bigger budget gap than expected with just nine weeks left in the fiscal year.

The Department of Revenue attributes April's poor tax collections, in part, to the U.S. economy recording its slowest quarter in three years.

Daveynin / Flickr

The House GOP-led budget proposal—which passed on to the Senate last week—has drawn criticism from legislative Democrats, and Democratic Governor Tom Wolf for its austere tax cuts.

But it’s also seeing pushback from a more bipartisan group: the Pennsylvania County Commissioners Association.

For the last few budget cycles, state funding has stayed largely flat for a number of county-level programs—including probation services, behavioral health services, and the multi-use Human Services Development Fund.