Major state revenue collections in New Jersey were down slightly in February, with the Department of Treasury attributing the decrease to taxpayers filing for their 2025 tax year refunds earlier than usual, according to a March 17 statement.
The change in timing for tax refunds led to a drop in overall collections for the month. February is typically a minor month for revenue collection, as there are no major payment deadlines. The Department of Treasury reported that total major tax revenues reached $3.091 billion, which is $89.4 million or 2.8% lower than last year.
Gross Income Tax collections totaled $1.253 billion, down by $201 million or 13.8% compared to last year. This decrease was entirely due to the early issuance of a large batch of refunds at the end of February instead of early March. Despite this monthly dip, fiscal year-to-date income tax collections are up by $818.9 million or 7% over the same period last year.
Sales and Use Tax revenues increased by $21.1 million or 2.2%, totaling $974.9 million for February, while fiscal year-to-date collections rose by $234.8 million or 2.9%. The Corporation Business Tax (CBT) saw negative collections of $22.6 million in February—a decrease attributed to higher refund levels and lower payments—with fiscal year-to-date CBT revenues down by $861.4 million or 38.3%. Christopher Emigholz, Chief Government Affairs Officer at the New Jersey Business and Industry Association (NJBIA), said that these trends influenced Governor Mikie Sherrill’s proposal to limit use of the Net Operating Loss deduction for three years: “NJBIA is concerned about the message this sends to corporate taxpayers who have taken the gamble to invest in New Jersey and now have had the rug pulled out from under them.”
Other taxes showed increases: Insurance Premiums Tax (IPT) collections were up by nearly 20% compared with last year, and Petroleum Products Gross Receipts Tax (PPGRT) revenues rose following a rate increase effective January 1.
The NJBIA serves as the nation’s largest statewide employer association representing employers across various sectors according to its official website. It advances competitive excellence and financial success for its members while providing essential information and services according to its official website. Michele Siekerka serves as president and chief executive officer according to its official website. The association supports private-sector employers throughout New Jersey according to its official website, facilitates partnerships among businesses, government entities, and academic institutions according to its official website, and offers advocacy along with cost-saving benefits according to its official website.
Looking ahead, Treasury officials expect moderate growth in Fiscal Year 2026 revenue collections based on updated forecasts included in the Governor’s Budget Message for Fiscal Year 2027.
