Strong corporate profits boost Pennsylvania tax collections
HARRISBURG, Pa. (AP) — Pennsylvania state government’s tax collections are running ahead of estimate through the fiscal year’s first quarter, and state officials point to strong corporate profits.
The state Department of Revenue said tax collections for the three months through Sunday were $210 million, or 3 percent, ahead of the official estimate.
Total collections of $7.6 billion for the state’s general operating account are 10 percent higher than last year at this point.
Most of the surplus is from strong corporate tax collections and Revenue Department officials point to a federal analysis that corporate profits grew 3 percent in 2018′s second quarter.
Revenue Department officials say they aren’t certain yet what’s driving corporate tax growth, but the state’s Independent Fiscal Office has said it expected the federal tax-cutting law to boost collections.