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State tax collections up, per capita share increases

Tax collections in Pennsylvania totaled $27.3 billion in 2005, an increase of $1.9 billion or 7.6 percent over 2004, according to the U.S. Census Bureau's "2005 Annual Survey of State Government Tax Collections."

Since 2000, tax revenue in Pennsylvania has risen $4.8 billion, or 21.3 percent.

Pennsylvanians paid an average of $2,193.32 to the state in 2005, slightly above the national average ($2,192.27) and a per capita increase of $148.23 from the previous year.

The commonwealth ranks 17th nationally in per capita tax revenue growth since 2000 (+$363.92 per resident), but just 30th in per capita increase last year.

Total tax revenue for all states grew 9.7 percent between 2004 and 2005, and since 2000, revenue has grown by 20.2 percent.

Components of Pennsylvania tax revenue

Pennsylvania's largest source of tax revenue is sales and gross receipts ($13.2 billion).

The commonwealth took in 5.6 percent more in sales and gross receipts tax revenue last year and since 2000, revenue has increased by more than 26 percent. A little over 60 percent of the total ($8.1 billion) are general sales and gross receipts taxes; the remainder ($5.2

billion) are selective sales taxes (alcoholic beverage, insurance premiums, tobacco products, etc.). Pennsylvanians paid $1,064.14 per person in sales and gross receipts taxes last year.

Income taxes brought in close to $ 10 billion in 2005, an increase of 10.9 percent over 2004 and 17.9 percent since 2000. Individual income taxes accounted for 83 percent of all income tax revenue, while taxes on corporate net income comprised the other 17 percent. Individual income taxes now average $665.78 per person.

License and other tax revenue also increased in 2005, totaling $2.7 billion and $ 1.3 billion, respectively. License tax revenue is up 19.9 percent since 2000, and other taxes brought in an additional 10.9 percent.

In contrast, state property taxes (made up primarily of utility property and domestic and foreign corporation taxes) have declined 51 percent since 2000.Totaling $117.4 million in 2000, state property taxes brought in just $58 million in 2005.

Per capita national comparison

Pennsylvania ranked 22nd nationally in total per capita tax collections in 2005 and 5th in total tax revenue. The commonwealth also ranked 5th in per capita licensing tax income, 24th in tax revenue from sales and gross receipts, and 32nd in individual income tax. Pennsylvania's individual income taxes averaged $81.43 less than the states as a whole.

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