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Treasury: Year to Date Revenues on Target
May Revenues Down Slightly

(TRENTON) – The Department of the Treasury reported today that May revenue collections for the major taxes totaled $2.694 billion, down $472.9 million, or 14.9 percent below last May. This fluctuation is primarily due to a timing issue related to the new Taxation system upgrade, and is expected to stabilize in June. Fiscal year-to-date, total collections of $41.143 billion are up $1.575 billion, or 4.0 percent ahead of the same period last year.

May revenues for the Gross Income Tax (GIT), which are dedicated to the Property Tax Relief Fund, totaled $952.1 million, up $34.0 million, or 3.7 percent over last year. The increase in net revenues was primarily due to a decline in refunds caused by a timing shift of large tranches of refund issuances between April and May. Employer withholding collections declined, albeit due to one fewer Wednesday payment day compared to May 2024. Fiscal year-to-date, total GIT revenues of $17.956 billion are up $1.633 billion, or 10.0 percent above last year, and in-line with the year-end target of 9.9 percent growth.

The SUT, the largest General Fund revenue source, totaled $891.0 million, down $129.5 million, or 12.7 percent lower than last May. The revenue decline is primarily due to the payment delays under Phase 1 of the NJ Tax System upgrade, which shifted the normal collection pattern for several taxes. This timing issue should be reversed in June when the delayed payments will be due. Fiscal year-to-date revenues of $11.086 billion are up $219.0 million, or 2.0 percent above last year and consistent with the year-end target of 3.6 percent growth as delayed SUT payments will be due in June. The energy component of the SUT reported only $73.9 million in May, down $422.6 million from May 2024 due to the payment delays. The full payments made by certain utility companies are expected to be recouped in June.

The Corporation Business Tax (CBT), the second largest General Fund revenue source, totaled $212.3 million in May, up $83.8 million, or 65.2 percent higher than year. May marks the due date for CBT final payments, but the majority of companies continue to remit payments at the time of the federal due date in April. Net CBT revenues for the month were higher primarily due to lower refunds, but final payments were also up by 10.6 percent. Fiscal year-to-date collections of $3.935 billion are down $137.7 million, or 3.4 percent below last year, but in-line with the year-end target of a 3.6 percent decline.

Insurance Premiums Tax (IPT) revenues for May of $297.8 million were $9.6 million, or 3.1 percent lower than last year. June 1st marks the due date for the second prepayment of half the estimated calendar year liability for IPT payers, with most collections usually being remitted during the final week of May. Fiscal year-to-date revenues total $516.4 million are down $113.6 million, or 18.0 percent lower than last year.

Realty Transfer Fee revenues of $47.1 million were up $15.0 million, or 46.7 percent above last May. Fiscal year-to-date revenues of $431.9 million remain strong, at $80.0 million, or 22.7 percent above last year. The summer months historically see increased sales volume and the potential for additional growth from this revenue source.

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