January 12, 2006
State Revenues on Track
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.
when discounting the $150 million from tobacco refinancing, total State
revenues remain above targets at the halfway mark of the fiscal year,"
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.
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.