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Treasury: Total Major Taxes On-Target through May

TRENTON - The Department of the Treasury reported today that May revenue collections for the major taxes totaled $3.167 billion, up $526.7 million, or 19.9 percent above last May. However fiscal year-to-date, total collections of $39.568 billion are now down by $182.3 million, or 0.5 percent lower than over the same period last year, and in-line with the year-end target of a 0.6 percent decline. Most of the May revenue increase was from higher net Gross Income Tax collections, which in turn was mainly due to lower refunds.

May revenues for the Gross Income Tax (GIT), which are dedicated to the Property Tax Relief Fund, totaled $918.2 million, up $457.3 million, or 99.2 percent over last year. The sharp increase in net collections was primarily due to May refunds coming in lower by $308.5 million, or 30.9 percent below last year. Accelerated refund processing during this year’s filing season, which earlier drove higher levels of refunds in February and April, is the main reason for the decrease seen in May. GIT refunds are running $125.9 million, or 4.2 percent, higher over the four month period February – May 2024 compared with last year. Fiscal year-to-date, total GIT revenues of $16.323 billion are down by $165.1 million, or 1.0 percent below last year, which is consistent with the year-end target of a 0.8 percent decline.

The Sales and Use Tax (SUT), the largest General Fund revenue source, totaled $1.020 billion, an increase of $45.4 million, or 4.7 percent above last May, marking the highest SUT growth rate for the fiscal year. Sales tax collections growth also trended higher than the rate of regional core inflation for the first time in twelve months. Fiscal year-to-date, revenues of $10.867 billion are up $137.0 million, or 1.3 percent above the same period from last year and matching the year-end target.

The Corporation Business Tax (CBT), the second largest General Fund revenue source, totaled $128.6 million in May, down $54.8 million, or 29.9 percent below last year. May marks the due date for CBT final payments, but the majority of companies continue to remit payments at the time of the federal due date in April. CBT revenues for the month were mainly lower due to reductions in both final and estimated payments. Fiscal year-to-date, collections of $4.072 billion are down $275.0 million, or 6.3 percent below last year.

Insurance Premiums Tax (IPT) revenues for May of $307.4 million were $55.8 million, or 22.2 percent higher than last year. June 1st marks the due date for the second prepayment of half the estimated calendar year liability for IPT payers, with most collections usually being remitted during the final week of May. Fiscal year-to-date revenues total $630.0 million are up $35.3 million, or 5.9 percent over last year.

Realty Transfer Fee revenues of $32.1 million were up $4.5 million, or 16.2 percent above last May, marking the first month of positive growth since September 2022. The rise in collections was likely due to the growth in closed sales beginning to reach a plateau after three years of declines, while median home prices in New Jersey remain elevated. Fiscal year-to-date, revenues of $351.8 million are down $85.7 million, or 19.6 percent from last year. The summer months historically see increased sales volume and the potential for additional growth from this revenue source.

Please see the attached chart for monthly and yearly revenue collection comparisons.