Summary
Philadelphia’s Amusement Tax applies a 5.0 percent levy on in-person entertainment like sporting events, concerts, and clubs, generating the vast majority of its revenue from professional sports teams. After a sharp pandemic-era drop, collections rebounded with a compound annual growth rate of 9.4 percent from FY16 to FY25 and are projected to grow more modestly at 3.2 percent annually through FY30, boosted by upcoming major events like the World Cup and All-Star Game. Although the tax is small in scale, accounting for just 1.0 percent of General Fund tax revenues, it remains a noteworthy example of how entertainment trends and event calendars shape local revenue collections.