The Department of the Treasury reported today that May revenue collections for major taxes totaled $3.167 billion, up $526.7 million, or 19.9 percent above last May. However, fiscal year-to-date, total collections of $39.568 billion are now down by $182.3 million, or 0.5 percent lower than over the same period last year, aligning with the year-end target of a 0.6 percent decline.
Most of the May revenue increase was from higher net Gross Income Tax (GIT) collections, primarily due to lower refunds. May revenues for GIT, which are dedicated to the Property Tax Relief Fund, totaled $918.2 million, up $457.3 million or 99.2 percent over last year. The sharp increase in net collections was mainly due to May refunds being lower by $308.5 million or 30.9 percent below last year.
"Accelerated refund processing during this year’s filing season, which earlier drove higher levels of refunds in February and April, is the main reason for the decrease seen in May," said a Treasury spokesperson.
GIT refunds are running $125.9 million or 4.2 percent higher over the four-month period from February to May 2024 compared with last year. Fiscal year-to-date, total GIT revenues of $16.323 billion are down by $165.1 million or 1.0 percent below last year, consistent with the year-end target of a 0.8 percent decline.
The Sales and Use Tax (SUT), the largest General Fund revenue source, totaled $1.020 billion in May, an increase of $45.4 million or 4.7 percent above last May, marking the highest SUT growth rate for the fiscal year.
"Sales tax collections growth also trended higher than the rate of regional core inflation for the first time in twelve months," noted Treasury officials.
Fiscal year-to-date revenues of $10.867 billion are up $137 million or 1.3 percent above the same period from last year and matching the year-end target.
The Corporation Business Tax (CBT), the second-largest General Fund revenue source, totaled $128.6 million in May, down $54.8 million or 29.9 percent below last year.
"May marks the due date for CBT final payments," stated a Treasury representative.
However, most companies continue to remit payments at the time of the federal due date in April.
CBT revenues for May were mainly lower due to reductions in both final and estimated payments.
Fiscal year-to-date collections of $4.072 billion are down by $275 million or 6.3 percent below last year.
Insurance Premiums Tax (IPT) revenues for May were reported at $307.4 million, up by $55.8 million or 22.2 percent higher than last year.
"June 1st marks the due date for the second prepayment of half the estimated calendar-year liability for IPT payers," Treasury explained.
Fiscal year-to-date revenues totalled $630 million, up by $35 .3million or 5 .9percent over lastyear .
Realty Transfer Fee revenues were recorded at$32 .1million ,upby$4 .5millionor16 .2percentabovelastMay ,markingthefirstmonthofpositivegrowthsinceSeptember2022 .
"The rise in collections was likely due to growth in closed sales beginning to reach a plateau after three years of declines while median home prices in New Jersey remain elevated," observed analysts .
Fiscalyear -to -daterevenuesof$351 .8millionaredownby$85 .7millionor19 .6percentfromlastyear .
Thesummermonths historically see increased sales volume and potential additional growth from this revenue source .
Please see attached chart for monthly and yearly revenue collection comparisons .
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