philadelphia's 2016 revenue report · pdf file$468.9m $471.7m $0m $50m $100m $150m $200m...

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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

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ccou

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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

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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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philadelphia's 2016 revenue report · pdf file$468.9m $471.7m $0m $50m $100m $150m $200m...

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