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 TRENTON -- State Treasurer John E. McCormac announced today that October revenue collections, which came in above target for the Sales Tax but under for the Gross Income Tax (GIT) and Corporation Business Tax (CBT), totaled $1.9 billion, which is 6.9 percent below estimates for the month.
Of the major taxes, October collections for the GIT were $531.9 million, which is $25 million below the monthly estimate. "We are seeing a continuation of a timing trend in the Gross Income Tax. Unfortunately, we will not know with certainty until April whether our month to month estimates for the upper income tax revenues are precise as most large taxpayers will not pay until April 15. We do know that New Jersey 's primary and underlying economic indicators are strong, as evidenced in October Labor statistics showing New Jersey 's employment at an all-time high of 4,065,900. "
Sales Tax Collections totaled $514 million, which is $4.8 million ahead of monthly targets. CBT collections for the month totaled $132.9 million, or $78.1 million under the October estimate. "We are concerned with the falloff on CBT but will get a better picture when the final estimated payments are due in December," McCormac said.
McCormac noted that despite month to month volatility in both the GIT and the CBT, collections to date are still within 2.3 percent of target. Most of the year-to-date variance of $182.7 million is directly attributable to the October collection performance figures, when all revenues fell $142 million short of the month's target.
"We will continue to carefully monitor the progress of our revenues as we move into the holiday period, when collections accelerate considerably and revenue variances in the major taxes should be less pronounced," McCormac said.
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