Office of the State Treasurer

NEWS RELEASE

FOR IMMEDIATE RELEASE
October 6, 2006
 CONTACTS:  

Tom Vincz
(609) 633-6565

Revenue Collections on Target with FY 2007 budget Projections

 TRENTON – State Treasurer Bradley Abelow announced today New Jersey’s revenue collections through the first three months of FY 2007, approximately $6 billion, are almost exactly aligned with projections for the first quarter of the new fiscal year.

 State revenues total $5.9971 billion through September, compared to the FY 2007 budget target of $5.9979 billion. Among the major taxes, the Gross Income Tax (GIT), at $1.87 billion, is slightly under (-4.2%) the projected quarterly estimate of $1.95 billion. The Sales Tax, at $1.97 billion, is in line with targets, whiles the Corporation Business Tax (CBT), at $499.8 million, is well above (+26.9%) the collection target of $394 million.

 “While this report factors in only a small fraction of revenue collected over the course of the fiscal year, we’re pleased to be on track with our projections,” said Treasurer Abelow. “These figures do not yet reflect many of the key barometers for future revenue performance, such as the fourth quarterly payment from CBT payers and the balance of GIT due from taxpayers who received payment extensions. As more of these cash receipts come in, we will have a better picture of how well our revenues are matching up with budget targets.”

 “We are encouraged by collections to date and will closely monitor all of our taxes as we progress further into FY 2007,” Abelow said.


STATE OF NEW JERSEY

REVENUE SOURCE
BUDGET VERSUS EARNED
MONTH OF SEPTEMBER 2006
($ Thousands)
 
 
September
 
Variance
% Variance
           
Over/(Under)
Over/(Under)
    Budget   Earned  
Budget
Budget
Revenue Source
Gross Income
$
1,039,000
$
989,015
$
(49,985)
(4.8%)
Sales
697,000
699,481
2,481 
0.4% 
Corporation Business
252,000
364,905
112,905 
44.8% 
Lottery
63,400
64,616
(1,216)
1.9% 
Motor Fuels
44,100
41,027
(3,073)
(7.0%)
Motor Vehicle Fees (b)
-
-
-
-
Transfer Inheritance
52,000
38,712
(13,288)
(25.6%)
Casino Revenue
38,100
36,915
(1,185)
(3.1%)
Insurance Premium
400
591
191 
0.0% 
Cigarette (a)
-
-
-
-
Petroleum Products Gross Receipts
18,000
19,818
1,818 
10.1% 
Corp. Banks & Financial Institutions
14,600
15,155
555 
3.8% 
Alcoholic Beverage Excise
100
(481)
(581)
-
Realty Transfer
35,500
29,217
(6,283)
(17.7%)
Tobacco Products Wholesale Sales (a)
1,800
973
(827)
(45.9%)
Public Utility
-
-
-
-
Total
$
2,256,000
$
2,299,944
$
43,944 
1.9% 
All Other
290,600
289,111
(1,489)
(0.5%)
Total Revenues
$
2,546,600
$
2,589,055
$
42,455
1.7% 
 


(a) Pursuant to P.L. 06-37, revenue collections of 370.0 million from the cigarette and tobacco products wholesale sales taxes are deposited in the Health Care Subsidy Fund starting with fiscal year 2007. Pursuant to P.L. 04-69 $0.0325 per cigarette is dedicated to pay debt service on the Cigarette Securitization Bonds.
(b) Pursuant to P.L. 03-013, $198.7 million of FY 2007 Motor Vehicle Fee collections are dedicated to the New Jersey Motor Vehicle Commission.
Source: OMB 10/4/2006



STATE OF NEW JERSEY

REVENUE SOURCE
BUDGET VERSUS EARNED
FOR THE THREE MONTHS ENDING SEPTEMBER 30, 2006
($ Thousands)
 
 
September
 
Variance
% Variance
           
Over/(Under)
Over/(Under)
    Budget   Earned  
Budget
Budget
Revenue Source
Gross Income
$
1,954,000
$
1,872,559
$
(81,441)
(4.2%)
Sales
1,967,000
1,967,395
395 
0.0% 
Corporation Business
394,000
499,798
105,798 
26.9% 
Lottery
195,600
176,383
(19,217)
(9.8%)
Motor Fuels
135,000
140,093
5,093 
3.8% 
Motor Vehicle Fees (b)
-
-
-
-
Transfer Inheritance
161,900
156,846
(5,054)
(3.1%)
Casino Revenue
112,100
116,074
3,974 
3.5% 
Insurance Premium
1,900
297
(1,603)
(84.4%)
Cigarette (a)
-
-
-
-
Petroleum Products Gross Receipts
62,100
60,567
(1,533)
(2.5%)
Corp. Banks & Financial Institutions
19,300
17,667
(1,633)
(8.5%)
Alcoholic Beverage Excise
15,600
15,105
(495)
(3.2%)
Realty Transfer
104,500
104,366
(134)
(0.1%)
Tobacco Products Wholesale Sales (a)
3,100
2,163
(937)
(30.2%)
Public Utility
-
19
19 
0.0% 
Total
$
5,126,100
$
5,129,332
$
3,232 
0.1% 
All Other
871,800
867,749
(4,052)
(0.5%)
Total Revenues
$
5,997,900
$
5,997,081
$
(820)
(0.0%)
 


(a) Pursuant to P.L. 06-37, revenue collections of 370.0 million from the cigarette and tobacco products wholesale sales taxes are deposited in the Health Care Subsidy Fund starting with fiscal year 2007. Pursuant to P.L. 04-69 $0.0325 per cigarette is dedicated to pay debt service on the Cigarette Securitization Bonds.
(b) Pursuant to P.L. 03-013, $198.7 million of FY 2007 Motor Vehicle Fee collections are dedicated to the New Jersey Motor Vehicle Commission.
Source: OMB 10/4/2006



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