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YEAR IN REVIEWFY2016
DEPARTMENT OF REVENUECITY OF PHILADELPHIA
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about.The Department of Revenue collectstaxes, water charges, and other fees and fines to provide funding for the School District of Philadelphia and City of Philadelphia.
2
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tax. water. legal enforcement.
Taxes and fees
Water, sewer, and stormwater
charges
Delinquent collections with the
Law Department
542 full‐time employees
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General Fund Taxes$3 billion
Fees, etc.$295 million
School Taxes$961 million
Water$605 million
$4.9 billion collected in FY 2016less than one penny of every dollar
collected is spent on revenue collection
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Business Income & Receipts Tax
*preliminary data, to be adjusted for credit balances
*
$289.2m
$291.7m$311.4m
$414.6m $400.7m$356.8m
$388.3m
$468.9m $471.7m
$0m$50m
$100m$150m$200m$250m$300m$350m$400m$450m$500m
FY2000
FY2001
FY2002
FY2003
FY2004
FY2005
FY2006
FY2007
FY2008
FY2009
FY2010
FY2011
FY2012
FY2013
FY2014
FY2015
FY2016
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collections increased by over $100 million since 2015
reach record high of $1.85 billion
Wage, Earnings, and Net Profit Tax
$1.24b$1.28b
$1.30b$1.31b
$1.35b$1.38b
$1.42b
$1.50b$1.55b
$1.49b$1.48b
$1.52b$1.55b
$1.62b$1.67b
$1.75b
$1.85b
FY2000
FY2001
FY2002
FY2003
FY2004
FY2005
FY2006
FY2007
FY2008
FY2009
FY2010
FY2011
FY2012
FY2013
FY2014
FY2015
FY2016
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Real Estate Tax Collectionsincreased over $100 million since FY2015
$0.8b $0.8b$0.9b
$0.9b$1.0b $1.0b
$1.1b $1.2b$1.3b
$0.0b
$0.2b
$0.4b
$0.6b
$0.8b
$1.0b
$1.2b
$1.4b
FY2000
FY2001
FY2002
FY2003
FY2004
FY2005
FY2006
FY2007
FY2008
FY2009
FY2010
FY2011
FY2012
FY2013
FY2014
FY2015
FY2016
*
*preliminary data, to be adjusted for credit balances
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$78.4m
$78.1m
$95.1m
$102.6m
$137.5m
$194.8m
$234.5m
$219.1m
$186.1m
$115.7m
$118.4m
$117.3m$118.9m
$146.9m
$167.8m
$203.1m
$236.3m
$50m
$70m
$90m
$110m
$130m
$150m
$170m
$190m
$210m
$230m
$250m
FY2000
FY2001
FY2002
FY2003
FY2004
FY2005
FY2006
FY2007
FY2008
FY2009
FY2010
FY2011
FY2012
FY2013
FY2014
FY2015
FY2016
8
Realty Transfer Tax Collectionsincrease $33 million
from more home sales and higher sales prices
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water fund.
With over 530,000 billed water accounts, the Water Revenue Bureau is
responsible for creating water bills, collecting all water, stormwater, and sewer rents
due to the City, and administering water assistance programs.
Water Revenue Bureau
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Water Revenue Collectionsexceed $600 million
$306.4m $307.0m$355.4m
$405.9m$437.8m
$470.6m$520.1m
$569.7m$605.5m
$0m
$100m
$200m
$300m
$400m
$500m
$600m
$700m
FY2000
FY2001
FY2002
FY2003
FY2004
FY2005
FY2006
FY2007
FY2008
FY2009
FY2010
FY2011
FY2012
FY2013
FY2014
FY2015
FY2016
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$961 million in School Taxes Collections
Real Estate Tax$710 million (74%)
School Income Tax$41 million (4%)
Use & Occupancy Tax$139 million (14%)
Liquor Tax, etc.$71 million (8%)
in addition to nearly $200 million in local taxes directly collected by the State to fund the School District of Philadelphia from the
Cigarette Tax and Sales & Use Tax
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$21.63m
$19.16m
$17.15m
$16.90m
$14.52m
$17.09m
$20.26m
$22.06m
$29.19m
$25.16m
$21.78m
$24.51m
$27.76m
$27.94m
$37.00m
$43.66m
$40.48m
FY2000
FY2001
FY2002
FY2003
FY2004
FY2005
FY2006
FY2007
FY2008
FY2009
FY2010
FY2011
FY2012
FY2013
FY2014
FY2015
FY2016
School Income Tax Collections improvements in IRS data matching led to a peak in FY15
that leveled off in FY16
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$41.7 million
$40.9 million$42.9 million
$44.3 million
$49.1 million
$53.0 million
$61.4 million$60.5 million
$66.0 million
$0m
$10m
$20m
$30m
$40m
$50m
$60m
$70m
FY2008 FY2009 FY2010 FY2011 FY2012 FY2013 FY2014 FY2015 FY2016
Liquor Tax Collections Grew 58%
third year of collections greater than $60 million
from FY08 – FY16, due to better enforcement
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enforcement.
14
MOST TAXPAYERS PAY, AND PAY ON TIME
Across all Business and Real Estate taxpaying accounts; about 1‐in‐10
were delinquent at the close of Fiscal Year 2016
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percen
t of d
elinqu
ent a
ccou
nts
Lowest Number of Delinquent Accountssince FY11 the number of delinquent accounts decreased 25%
the amount those accounts owed decreased 20%
20%
16%15% 15%
14%
13%
$408.9m $402.8m$397.2m
$374.1m
$380.2m$328.7m
0%
5%
10%
15%
20%
25%
FY2011 FY2012 FY2013 FY2014 FY2015 FY2016$0m
$50m
$100m
$150m
$200m
$250m
$300m
$350m
$400m
$450m
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$61.86m
$13.22m$4.06m
$1.47m
$9.68m
$64.09m
$3.21m
$46.31m
$7.38m$0.06m $3.50m
$9.13m
$14.25m
$26.19m
$16.48m
$61.42m
$‐
$10,000,000
$20,000,000
$30,000,000
$40,000,000
$50,000,000
$60,000,000
$70,000,000
PaymentAgreement
Sheriff Sale Bankruptcy Appeal CALRevocation/SequestrationReceivership
CollectionAgency
NewDelinquency
InternalCollections
Real Estate Business Taxes
Active Principal Balance ($342 million) by Enforcement Category
Selecting the Right Toolfor the right delinquency ‐ at the right time
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Improving the Customer Experience
+$309 milliononline payments
+2.6 millionwebsite visits
+130,000 in‐person visits
+900,000 calls received
+13 million letters sent
Last year we sent more letters, answered more calls, and saw more customers. By making echeck FREE, online payments increased 82%.
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totaling $106 milliona Real Estate Tax discount in 2015
nearly 25%.
Senior Tax Freeze, Homestead, LOOP
+230,000 homeowners received
and lowering their average bill by
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Owner-Occupied Payment Agreements
More than doubled the number of delinquent homeownersparticipating in OOPA and the amount they have under agreement
20155,036 properties
$34.5 million under agreement
20142,456 properties
$17.0 million under agreement
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Earned Income Tax CreditOver 17,000 tax returns were prepared for free in FY2016 with the
City’s support, an increase of 240% from the year before; resulting in $19.3 million in refunds (including $7.5 million in EITC
refunds).
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Water Revenue Assistance Programs
Getting help to those who need it most—WRAP enrollment increases 56% from Fiscal Year 2006.
$1,229 $1,602$3,218
$5,550$7,044
$5,409 $4,263$3,169
$3,540$4,011 $3,653
6,974 6,689 6,461 6,317
8,553 9,798 10,023
10,743
10,104
10,913 10,865
$0
$1,000
$2,000
$3,000
$4,000
$5,000
$6,000
$7,000
$8,000
‐
2,000
4,000
6,000
8,000
10,000
12,000
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Average Delinqu
ency
Approved
Accou
nts
Average Delinquency Approved Accounts
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Senior Citizen Water Discount
over 22,000 eligible seniors received a water discount in FY2016; totaling $3.6 million
in assistance.
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looking ahead to
FY17.
Data warehouse to improve collections
eBilling for Water
Philadelphia Beverage Tax
Liquor License Sheriff Sales
Improving benefit and assistance programs to make them easier to access
Income-based water affordability plan, iWRAP
Automated payment withdrawals for payment plans
Tax Lien Sales
Improved Employee Indebtedness Program
Lender Payments on Delinquent Property Taxes and Fees
Business Tax Debt Sales
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