Publications

Philadelphia’s Real Estate Tax and Realty Transfer Tax together generate about one-fifth of General Fund revenues, making them the City’s second largest revenue source. While the Real Estate Tax grows relatively steadily with property values and revaluations, the Realty Transfer Tax is far more volatile, responding sharply to interest rates, transaction volume, and high-value commercial…

Philadelphia’s smaller taxes, including the Mechanical Amusement Device, Outdoor Advertising, Tobacco, and Development Impact Taxes, collectively generate less than 0.1 percent of General Fund revenues but serve targeted policy purposes. Although collections grew at a 10.0 percent annual rate from FY16 to FY25, total revenue remains modest, with the Development Impact Tax now accounting for…

The PICA Board approved the second one-year renewal of its engagement with Ballard Spahr LLP to provide General Counsel services, effective February 20, 2026. The renewal is authorized under the terms of the original agreement, which allows for additional one-year extensions at the Authority’s discretion. The resolution also ratifies prior related actions and takes effect…

The PICA Board approved the retention of Charles Swanson to conduct an independent review of the City’s revenue assumptions and projections in the FY2027–FY2031 Five-Year Financial Plan. The engagement, for a fee not to exceed $9,000, supports PICA’s statutory responsibility to evaluate the reasonableness of the Plan’s underlying assumptions. The resolution authorizes the necessary actions…

The PICA Board approved and adopted the Authority’s operating budget for the fiscal year ending June 30, 2027, as required under the PICA Act. The resolution authorizes the Chairperson or Vice Chairperson to submit the approved budget to the Governor and General Assembly of the Commonwealth of Pennsylvania.

The Board received updates on the City’s FY25 Annual Financial Report, which showed a record $1.19 billion General Fund balance driven by higher-than-expected BIRT and Realty Transfer Tax revenues and underspending from staffing vacancies. Members also heard about the passage of the state budget, staffing gains across City departments, and plans to establish a Federal…

Philadelphia’s local Sales Tax provides a stable and growing source of General Fund revenue, supporting City operations, the School District of Philadelphia, and long-term pension funding. From FY16 to FY25, Sales Tax collections grew at a 7.0 percent annual rate, outpacing overall General Fund revenue growth. Looking ahead, Sales Tax revenue is projected to continue…

At this meeting, the Board will receive updates from the City, along with reports from the Executive Director and Treasurer. Members will consider three resolutions, including approval of General Counsel, renewal of revenue analysis services, and adoption of PICA’s FY27 Budget.

The Philadelphia Beverage Tax was enacted in 2017 to help fund Pre-K, community schools, and capital improvements, with the understanding that it would supplement rather than fully sustain these programs. Collections have declined steadily over time, with a compound annual growth rate of -1.8 percent from FY18 to FY25, reflecting reduced sugary drink consumption and…

As the City of Philadelphia prepares its FY27–31 Five-Year Financial Plan, PICA outlines five recommendations to strengthen the Plan’s transparency and accuracy and to improve the City’s fiscal condition. These include maintaining reserves and pension funding commitments, scoping initiatives more accurately, ensuring an adequate labor reserve, publishing capital spending data, and making staff vacancy assumptions…

Overtime spending from Philadelphia’s General Fund grew 75.6 percent from FY18 to FY25, with total spending reaching $315 million in FY25. This growth was largely driven by persistently high vacancy rates, pandemic-related staffing challenges, and expanded services in departments such as Fire and Sanitation. As staffing levels recover, the report highlights the need for careful…

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…

Revenues from Other Funds reflect transfers into the General Fund from other City funds, most notably the Grants Revenue, Water, and Aviation Funds, to pay for services more efficiently managed centrally. Federal COVID-19 relief caused a dramatic spike in ROF from FY22 to FY25, but these revenues are projected to return to historical levels—about one…

PICA is hiring! PICA seeks a thoughtful and curious Research and Policy Analyst to conduct financial and public policy research and analysis in support of PICA’s mission. The Research and Policy Analyst will contribute to improving the City of Philadelphia by monitoring and reporting on Philadelphia’s financial condition, evaluating the City’s Five-Year Financial Plans and…

Locally Generated Non-Tax revenue includes fines, fees, permits, and investment earnings collected by City departments and plays an important role in diversifying Philadelphia’s General Fund. From FY16 to FY25, LGNT revenues grew steadily at a compound annual rate of 5.4 percent, though they are projected to decline slightly through FY30 due to reduced interest earnings…

Philadelphia relies on more than $1B in intergovernmental revenue each year, with the largest share coming from the PICA Tax, which supports flexible General Fund spending. Over the past decade, ROG grew at a compound annual rate of 5.9 percent, driven primarily by economic growth and wage gains, though non-PICA sources like federal and state…