Official Site of The State of New Jersey

Treasury: August Revenue Collections Exceed Prior Year
Only Credit Rating Upgrade in New Jersey History to Come During a Governor's First Year in Office

(TRENTON) - The Department of the Treasury reported that August revenue collections for the major taxes totaled $3.194 billion, up $353.5 million, or 12.4 percent higher than last year. This month's revenue growth was primarily attributable to the Sales and Use Tax (SUT) and the Gross Income Tax (GIT), while the realty taxes also posted strong gains. Fiscal year-to-date, total revenue collections of $3.832 billion are up $470.3 million, or 14.0 percent above the same period last year.

August collections for the GIT, which are dedicated to the Property Tax Relief Fund, totaled $1.365 billion, up $106.5 million, or 8.5 percent above last year. The increase in net revenues was primarily due to higher collections from Employer Withholding and Estimated Payments, while refunds were lower. Fiscal year-to-date, net collections of $1.665 billion are higher by $90.3 million, or 5.7 percent over last year.

The SUT, the largest General Fund revenue source, totaled $1.328 billion, an increase of $165.9 million, or 14.3 percent above last August. Due to a one-month lag in the reporting and payment of the Sales Tax, August revenue reflects consumer activity in July. SUT revenue growth appears to be influenced by a range of economic activities, particularly within technology oriented sectors.

The Corporation Business Tax (CBT), the second largest General Fund revenue source, finished the month at $1.2 million, up $39.2 million, or 103.2 percent above last August. The increase in net revenues was mainly due to significantly lower refunds. August is typically one of the lowest collection months for the CBT, as refunds often negate most of, if not exceed, the level of revenue. Fiscal year-to-date, net collections of $250.3 million are up $141.2 million, or 129.5 percent higher than last year.

Realty Transfer Fee revenues of $61.0 million were up $9.4 million, or 18.2 percent above last August, supported by continued growth in closed home sales and high median home prices. In addition, the Graduated Percent Fee (GPF), now reported with the Major Revenues, totaled $68.4 million, an increase of $38.8 million, or 131.5 percent over last August. Last year's GPF revenues were reduced by a delay in implementation, and substantial refunds permitted on a limited basis tied to contract and deed timing, which are expected to be far less prevalent in FY 2027.

It is important to note that the first two months of the fiscal year are less significant than most other months. Revenue collections in September are typically larger than July and August combined, primarily because of the substantial quarterly estimated payments that are due under the GIT, CBT, and the Pass-Through Business Alternative Income Tax.

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