No Budget Impasse this Year
Yesterday, the General Assembly passed and the governor signed the remaining bills to enact the current fiscal year’s spending plan of $31.5 billion. To pay for the general appropriations bill, the Legislature adopted several tax increases and some new revenue streams. The cigarette tax was increased another $1/pack while e-cigarettes, roll-your-own cigarettes, and smokeless tobacco have now been added as taxable items.
Additionally, lottery winnings will now be assessed a PIT and a sales tax will be imposed on digital downloading of books, music, satellite radio, and streaming audio/video. The tax on table games was also increased by 2%, but will sunset in five years. Revenue streams for the fiscal year are also dependent upon several non-recurring sources; i.e., a number of transfers contained in the fiscal code such as transfers from:
- The tobacco settlement – $28.5 million;
- Recycling fund – $9 million;
- The Building Pennsylvania program – $12 million;
- The Volunteer Companies Loan Fund – $9 million;
- The Alternative Fuels Incentive Fund – $5 million; and
- Several gaming licensure fees.
Please contact Jack Phillips with any questions.
