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Total Major Revenues Higher by 5.4 Percent in October Despite Continued Weakness in CBT Revenue Collections

(TRENTON) – The Department of the Treasury reported that October revenue collections for the major taxes totaled $3.189 billion, up $164.7 million, or 5.4 percent over last October. The revenue growth was led by increases in the Sales and Use Tax (SUT) and the Gross Income Tax (GIT), while Corporation Business Tax (CBT) collections were lower. Fiscal year-to-date total collections of $11.667 billion are higher by $427.1 million, or 3.8 percent above last year, and above the FY2026 Appropriations Act certified growth rate of 3.3 percent.

October collections for the GIT, which are dedicated to the Property Tax Relief Fund, totaled $1.401 billion, up $64.4 million, or 4.8 percent above last year. The increase in revenues was due primarily to strong collections growth from employer withholding and final payments, offset in part by an increase in refund issuances. Fiscal year-to-date collections of $5.142 billion are higher by $491.2 million, or 10.6 percent.

The SUT, the largest General Fund revenue source, totaled $1.418 billion, up $120.3 million, or 9.3 percent over last year. Fiscal year-to-date collections of $3.644 billion are up $188.6 million, or 5.5 percent above the same period last year. Sales Tax collections during the first quarter of this fiscal year benefited from the full imposition of the sales tax on the purchase of zero emission vehicles.

The CBT, the second largest General Fund revenue source, finished the month at negative $61.8 million, a reduction of $126.7 million, or 195.4 percent from last October. Fiscal year-to-date collections of $727.1 million are down $544.1 million, or 42.8 percent lower than last year. The weakness in CBT revenues this fiscal year has been driven by an increase in refunds, many of which have been claimed for tax periods prior to 2024, and a sharp drop in estimated payments.

Revenues from the Pass-Through Business Alternative Income Tax totaled $38.8 million in October, an increase of $42.7 million, or 1,093.0 percent above last October. The collections growth was driven by higher estimated payments, while refunds were below the same month last year. Fiscal year-to-date revenues of $954.6 million are up by $141.8 million, or 17.4 percent.

Petroleum Products Gross Receipts Tax (PPGRT) revenues in October of $138.0 million were higher by $12.4 million, or 9.9 percent above last year. Fiscal year-to-date collections of $408.0 million are up $29.0 million, or 7.7 percent above last year, although FY2025 started off with a lower PPGRT rate than FY2026.

Casino revenues totaled $72.5 million in October, an increase of $16.4 million, or 29.2 percent above last year. The increasing popularity of internet gaming and sports betting are two of the main drivers behind the growth in casino revenues. Collections this fiscal year will also be impacted by the enactment of P.L.2025, c.66 (eff. July 1, 2025), which increased internet casino gaming and sports wagering taxes. Fiscal year-to-date revenues of $243.4 million are up $68.1 million, or 38.9 percent above last year.

Realty Transfer collections of $44.6 million were up $2.8 million, or 6.6 percent above last October. Fiscal year-to-date, revenues of $149.1 million are higher by $17.3 million, or 13.1 percent above last year. The inventory of homes available for sale in New Jersey increased substantially for the fifth straight month, if this positive trend in housing supply continues it may spur additional home sales.

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