Treasury: Revenue Collections Higher by 2.2 Percent in October
TRENTON - The Department of the Treasury reported that October revenue collections for the major taxes totaled $3.037 billion, up $64.1 million, or 2.2 percent over last year. Revenues grew mainly due to a $195.0 million multi-year settlement payment received under the Corporation Business Tax (CBT), which more than offset a decline in the Gross Income Tax (GIT). Year-to-date, total revenue collections of $10.917 billion are down $452.9 million, or 4.0 percent from the same period last fiscal year.
October collections for the GIT, which are dedicated to the Property Tax Relief Fund, totaled $1.109 billion, down $189.3 million, or 14.6 percent lower than last year. Employer withholding collections continued showing strength in the face of a slowing labor market. Declines in estimated and final payments, and higher refunds, once again more than offset the revenue increase from withholding. Fiscal year-to-date collections of $4.240 billion are down $433.7 million, or 9.3 percent.
The Sales and Use Tax (SUT), the largest General Fund revenue source, totaled $1.276 billion in October, up $11.0 million, or 0.9 percent over last year. Due to a one-month lag in the reporting and payment of Sales Tax, October revenue reflects consumer activity in September. October collections also reflected the latter part of New Jersey’s Back-To-School Sales Tax Holiday, which ran from August 26 through September 4. Fiscal year-to-date collections of $3.386 billion are up $16.5 million, or 0.5 percent.
The Corporation Business Tax, the second largest General Fund revenue source, totaled $283.6 million in October, an increase of $210.8 million, or 289.6 percent over last October. Again, this significant increase is due to a $195.0 million multi-year settlement booked under the CBT. Fiscal year-to-date collections of $1.437 billion are up $13.3 million, or 0.9 percent.
Petroleum Products Gross Receipts Tax (PPGRT) revenues of $120.6 million were down $2.2 million, or 1.8 percent below last year. Fiscal year-to-date collections of $368.1 million are down $5.1 million, or 1.4 percent lower than last year. The PPGRT rate increased by 0.9 cents, to 31.8 cents per gallon, effective on October 1, 2023. This increase will impact collections beginning in November 2023.
Realty Transfer Fee revenues of $39.0 million were down $11.8 million, or 23.3 percent from last year. Reductions in unit-closed sales continue to be the main driver behind lower realty collections, while declines in inventories of homes available for sale have accelerated for most of the year, exerting upward pressure on home prices. Mortgage rates have fallen a bit as of late, but remain elevated.
Treasury anticipates that aggregate Fiscal Year 2024 revenue collections for the major taxes will decline for the first half of the fiscal year, followed by some growth in the second half.
Please see the attached chart for monthly and yearly revenue collection comparisons.
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