(The Center Square) – New Jersey’s tax collections are down so far this fiscal year, even as the state saw revenue increases in select categories, including corporate business taxes.
Total fiscal year-to-date collections totaled nearly $10.4 billion, down $548.3 million, or 5%, from the same five months last year. Concurrently, treasury department officials said changes to the Gross Income Tax (GIT) and the Petroleum Products Gross Receipts Tax (PPGRT) buoyed November’s numbers.
November GIT collections totaled $962.8 million and were up $65.2 million, or 7.3%, above last November. However, year-to-date, GIT collections exceeded $4.3 billion and were down $409.3 million, or 8.7%, from the same period the previous fiscal year.
Officials contend the 10.75% marginal tax rate on taxable income between $1 million and $5 million, which took effect on Oct. 1, boosted November GIT collections. Separately, on Oct. 1, the state’s gas tax increased from 41.4 cents per gallon to 50.7 cents per gallon.
The largest General Fund revenue source, sales and use tax revenue, hit $836.9 million in November, an increase of $43.3 million, or 5.5%. It was the fourth consecutive month of sales and use tax revenue growth.
Due to a one-month lag in sales tax collections reporting, November revenue reflects October consumer activity, officials said. Year-to-date, sales and use tax collections topped $3.6 billion, an increase of $147 million, or 4.2%, over a year earlier.
The Corporation Business Tax (CBT), the second-largest General Fund revenue source, totaled $111.9 million last month, an increase of $3.6 million, or 3.3%, from the same month a year ago.
Refund payments “dropped significantly below last November, pushing net CBT collections into slightly positive territory” for the month, the treasury department said in a news release. Year-to-date CBT collections of nearly $1.1 billion are down $160.7 million, or 12.8%, below the same period last year.
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