The New Jersey Department of the Treasury has announced that February's revenue collections for major state taxes reached $3.180 billion, which is an increase of $378.5 million or 13.5% compared to the previous year.
The rise in total revenues was primarily due to a decrease in refunds under the Gross Income Tax (GIT) and Corporation Business Tax (CBT). According to the Treasury report, fiscal year-to-date, major revenues totaled $27.112 billion, marking an increase of $1.050 billion or 4.0% from last year, moving closer to the target growth of 5%.
For February, GIT collections amounted to $1.454 billion, up by $169.8 million or 13.2% from last year. This growth was attributed to higher employer withholding collections and fewer refunds issued. The initial batch of Tax Year 2024 refunds was released in early March 2025 instead of late February as in the previous year.
Sales and Use Tax (SUT), the largest General Fund revenue source, totaled $953.8 million, an increase of $52.8 million or 5.9% over last February's figures. However, this growth is slightly overstated due to a quarterly cannabis tax revenue transfer processed in March instead of February this year.
The CBT collected $21 million in February, representing a significant increase of $132.9 million or 118.7% over last year's figures due to reduced refunds.
Insurance Premiums Tax (IPT) collections for February were reported at $256.1 million, down by $38 million or 12.9%. Preliminary data suggests IPT revenues may have been impacted by refund issuances related to prior years' tax credits.
Petroleum Products Gross Receipts Tax (PPGRT) collections reached $130.2 million, showing an increase of $18.3 million or 16.4%. The PPGRT rate saw an increment effective January 1st, reflected in February payments.
Realty Transfer Fee revenues rose to $49 million, up by $14.3 million or 41.1%, supported by a turnaround in property sales with high median home prices.
On Wednesday, public hearings will commence regarding Governor Phil Murphy’s proposed state budget for Fiscal Year 2026 starting July 1st, which plans on collecting more than $1 billion through proposed tax and fee hikes.
