(TRENTON) – The Department of the Treasury reported today that August revenue collections for the major taxes totaled $2.812 billion, an increase of $365.7 million or 14.9 percent above last August. Year-to-date, total collections of $3.294 billion are up $494.9 million, or 17.7 percent above the same period last fiscal year.
While overall collections have started the fiscal year off strong compared to last year, the first meaningful revenue month will be September because of the substantial quarterly estimated payments that are due under the Gross Income Tax, Corporation Business Tax, and the Pass-Through Business Alternative Income Tax. Treasury expects FY2023 collections growth to moderate later in the fiscal year, particularly during the spring tax filing period when last year's historically high collection levels are unlikely to be repeated.
The Gross Income Tax (GIT), which is dedicated to the Property Tax Relief Fund, totaled $1.278 billion, up $256.7 million, or 25.1 percent above last August. This August included an extra Wednesday employer withholding payment compared to a year ago, which temporarily increases revenue until the calendar variance is rectified at the end of September. Absent the extra withholding payment date, GIT collections for the month would have been up about $105.0 million, or 9.0 percent compared to last August. Year-to-date collections are up $342.4 million, or 29.5 percent.
The Sales and Use Tax, the largest General Fund revenue source, totaled $1.085 billion, an increase of $115.0 million, or 11.9 percent higher than last August, registering the strongest year-over-year growth rate since this past March. Due to a one-month lag in the reporting and payment of Sales Tax, August revenue reflects consumer activity in July, and therefore does not reflect any of the activity from the Back-to-School Sales Tax Holiday.
The Corporation Business Tax (CBT), the second largest General Fund revenue source, totaled $53.2 million in August, an increase of $577,600, or 1.1 percent above last August. Year-to-date through August, CBT collections of $226.6 million are up $18.4 million, or 8.8 percent above the same period last year.
Realty Transfer Fee revenues of $61.1 million were $3.9 million, or 6.8 percent above last year, as monthly collections again exceeded the elevated levels observed last year. High median home prices have supported revenues, even while closings on sold homes have continued to fall. However, downward pressure on Realty Transfer Fee revenues is expected, as home prices in New Jersey appear to have plateaued and higher mortgage rates impact the realty market.
Please see the attached chart for monthly and yearly revenue collection comparisons.