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Treasury: March Revenues Up; Year-to-Date on Target

(TRENTON) — The Department of the Treasury reported today that March revenue collections for the major taxes totaled $3.951 billion, up $553.0 million, or 16.3 percent above last year. The growth in total revenues was mainly driven by higher payments from the Pass-Through Business Alternative Income Tax (PTBAIT) and the Corporation Business Tax (CBT). Fiscal year-to-date, total major revenues of $31.063 billion are now running $1.603 billion, or 5.4 percent above the same period last year, in line with the year-end target growth.

March collections for the Gross Income Tax (GIT), which are dedicated to the Property Tax Relief Fund, totaled $1.108 billion, up $38.3 million, or 3.6 percent above last year. The increase was attributable to strong growth in both employer withholding and in final payments, however, the revenue growth was largely offset by higher refunds. Employer withholding collections were most likely helped along by higher average Wall Street bonuses for 2024, which were up 31.5 percent according to the New York State Comptroller. Refunds were higher due to a timing issue caused by last year's acceleration of Tax Year 2023 refund issuances into late February 2024, as opposed to the usual time frame of early March. Fiscal year-to-date collections of $12.758 billion are up $928.2 million, or 7.8 percent higher than at the same point last year.

The Sales and Use Tax (SUT), the largest General Fund revenue source, totaled $905.2 million, up $26.5 million, or 3.0 percent higher than last March. However, this growth was slightly understated as a quarterly cannabis tax revenue transfer, which was also noted last month, was processed last year in February 2024, did not occur until March 2025. SUT growth would have been 5.0 percent above last March if the $17.7 million cannabis shift had instead occurred in February 2025. Fiscal year-to-date, SUT collections of $8.868 billion are now up $301.9 million, or 3.5 percent over last year, roughly in line with expectations.

The CBT, the second largest General Fund revenue source, totaled $459.7 million in March, an increase of $134.1 million, or 41.2 percent higher than last year. The CBT revenue growth was almost entirely due to stronger than expected estimated payments, and by lower refunds. Fiscal year-to-date collections of $2.710 billion are $5.5 million, or 0.2 percent above last year.

Payments from PTBAIT totaled $939.1 million in March, up $265.0 million, or 39.3 percent above the same month last year. March includes the due dates for PTBAIT final and extension payments, both of which, along with estimated payments, showed stronger growth than during the first eight months of the fiscal year. Extension payments included a significant $100 million payment that is considered non-recurring. Fiscal year-to-date revenues of $3.267 billion are up $191.7 million, or 6.2 percent higher than last year.

For the Insurance Premium Tax (IPT), March 1 marks the due date for the first prepayment of half of the estimated calendar year liability for IPT payers. While the majority of payments are received in late February, early March sees collections as well. March collections of $57.3 million were up $33.1 million, or 137.1 percent higher than last March. When combining February and March, IPT collections of $313.4 million were down $4.9 million, or 1.5 percent lower than the combined total for the same two-month period in 2024. Fiscal year-to-date collections through March of $219.2 million are down $99.9 million, or 31.3 percent below last year.

Realty Transfer Fee revenues of $34.2 million were $7.7 million (29.3 percent) higher than last March, having now shown positive growth for ten out of the past eleven months. Fiscal year-to-date, revenues of $344.0 million are now running $52.6 million (18.1 percent) above last year.

Economic news of recent weeks is not yet affecting revenues. Treasury's Office of Revenue and Economic Analysis continues to monitor the situation.

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