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 TRENTON
- State Treasurer John E. McCormac announced today that revenue collections
for the month of December exceeded projections by $203 million, or 7.8
percent, led by strong monthly returns from state income and corporate
taxes.
"December's
performance yielded stronger than anticipated collections in two of
the big three taxes, which signifies underlying strength in New Jersey's
economy," said McCormac. "The Income Tax is meeting our targets,
growing by 12 percent over last year's collections, while the CBT is
consistently exceeding our projections," he said.
"While
the Sales Tax is disappointing, we won't get a true picture of the holiday
season impact until later this month, when December receipts are remitted
to the State Treasury," he said.
For
December, the Gross Income Tax (GIT) yielded $988.3 million, or $106
million (12 percent) more than anticipated. Corporation Business Tax
(CBT) collections totaled $446 million, or $70 million (18.6 percent)
over monthly targets. Sales Tax collections totaled $675.9 million,
or $21 million (-3 percent) under projections.
Through
the first six months of the fiscal year, total revenues have reached
$12.38 billion, which is $16.1 million over projections. The revenue
total reflects the non-receipt of $150 million from the tobacco bond
refinancing, which is under a legal challenge.
"Even
when discounting the $150 million from tobacco refinancing, total State
revenues remain above targets at the halfway mark of the fiscal year,"
noted McCormac.
For
the six months ending December 30, Gross Income Tax revenues total $4.11
billion, which is within 0.5 percent of the target. The CBT, at $1.17
billion, is 12.4 percent ahead of projections. Sales Tax collections
of $3.44 billion are 2.3 percent under target through December.
"New
Jersey is on track to meet or exceed its projections for the current
fiscal year. While our year to year structural budget problems have
been eased but not eliminated, the State is well positioned with its
revenue base in planning for FY 2007," he said.
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