Treasury: October Revenue Collections Remain Strong
(TRENTON) - The Department of the Treasury reported that October revenue collections for the major taxes totaled $2.770 billion, up $269.3 million, or 10.8 percent, above last October. Year-to-date, total collections of $10.133 billion are up $2.025 billion, or 25.0 percent above the same four months last year.
October collections for the Gross Income Tax (GIT), which is dedicated to the Property Tax Relief Fund, totaled $1.164 billion, up $192.2 million, or 19.8 percent, above last October. Year-to-date collections of $4.231 billion are up $874.8 million, or 26.1 percent. As previously noted, growth is spurred primarily by two factors: employee withholding collections are recovering from weaker levels during the pandemic; and refund levels are down substantially, returning to normal for this time of year after taxpayer filing deadlines were delayed last year.
The Sales and Use Tax, the largest General Fund revenue source, reported $1.201 billion, an increase of $155.6 million, or 14.9 percent, over last October. Year-to-date collections of $3.107 billion are up $322.3 million, or 11.6 percent higher than the same period last year, as consumer behavior continues to exceed even pre-pandemic levels. Due to the one-month lag in Sales Tax collections, October revenue collections reflect consumer activity in September.
The Corporation Business Tax (CBT), which is the second largest General Fund revenue source, reported $141.7 million in October, a decrease of $37.2 million, or 20.8 percent. October collections are typically among the smaller CBT months each year. Year-to-date through October, CBT collections of $1.377 billion are up $413.6 million, or 43.0 percent above the same period last year, thanks to strong quarterly estimated payments in the prior month of September.
Treasury notes that the encouraging overall revenue trends are partially offset by sizeable new refund claims under the Pass-Through Business Alternative Income Tax (PTBAIT). PTBAIT collections declined in absolute terms by a net $98.3 million in October, following more than $120 million in refund claims due to overpayments made during Fiscal Year 2021. A sizable number of refunds are still expected in the coming months as taxpayers get a better handle on their payments under this new program.
Please see the attached chart for monthly and yearly revenue collection comparisons.
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