(TRENTON) – The Department of the Treasury today reported that July revenue collections for the major taxes totaled $2.491 billion, down $2.645 billion, or 51.5 percent below last July. This decline was anticipated because last July was atypical, witnessing heightened collections due to the fact that the state and federal government extended the tax filing deadline for individual and corporate taxpayers from April 15 to July 15 in light of the COVID-19 pandemic.
The Gross Income Tax (GIT), which is dedicated to the Property Tax Relief Fund, totaled $870.3 million, down $2.490 billion, or 74.1 percent below last July, which was enhanced by the extension of the tax filing deadline.
Similarly, the Corporation Business Tax, the second largest General Fund revenue source, saw total receipts of $179.9 million last month, down $409.9 million, or 69.5 percent below last July due to the deferred payments.
Conversely, the Sales and Use Tax, the largest General Fund revenue source was up $234.6 million, or 23.9 percent above last July, for a monthly total of $1.218 billion. While last July's collections were low due to pandemic-related economic restrictions, the subsequent consumer spending rebound has been substantial. July 2021 receipts are also well above pre-pandemic levels in July 2019 - 19.4 percent higher over the two-year period.
Total revenues of $40.826 billion for the 13 months ending in July increased by $5.907 billion, or 16.9 percent over the same 13 month period last year, in line with current expectations.
July is effectively treated as the 13th month of the fiscal year because cash collections include revenues from both Fiscal Year 2021, which just ended, and Fiscal Year 2022, which has just begun. After the annual accounting process is completed, final collections for FY 2021 will be published in the Comprehensive Annual Financial Report (CAFR) due out in early 2022.
Please see the attached chart for monthly and yearly revenue comparisons.