TRENTON, N.J. — New Jersey’s major tax revenues rose sharply in March, driven largely by strong income tax collections and timing-related factors, the state Department of the Treasury reported Tuesday.
Total revenue from major taxes reached $4.321 billion for the month, up about $370 million, or 9.4%, compared with March of last year. Officials said the increase was primarily fueled by the Gross Income Tax, particularly a decline in refund payouts tied to timing.
Fiscal year-to-date collections totaled $32.313 billion, an increase of $1.249 billion, or 4%, over the same period last year and generally in line with state projections.
Gross Income Tax collections totaled $1.595 billion in March, an increase of $486.7 million, or 43.9%. Treasury officials attributed the spike largely to lower refunds, noting that a major round of refunds was issued in late February rather than early March this year. Employer withholding and final payments also increased.
For the fiscal year to date, income tax collections stand at $14.063 billion, up $1.306 billion, or 10.2%.
Sales and Use Tax collections, the state’s largest source of General Fund revenue, totaled $883.5 million in March, down $21.8 million, or 2.4%, from a year ago. Because sales tax collections lag by one month, the figures reflect February activity, which officials said may have been dampened by winter storms.
Year-to-date sales tax collections reached $9.081 billion, up $213 million, or 2.4%.
The Corporation Business Tax, the state’s second-largest General Fund revenue source, brought in $368.5 million in March, a decrease of $91.3 million, or 19.9%, compared with last year. Fiscal year-to-date collections for the tax total $1.757 billion, down $952.6 million, or 35.2%, reflecting higher refund levels and declines in both final and estimated payments.
Revenue from the Pass-Through Business Alternative Income Tax totaled $929.8 million in March, down $9.3 million, or 1% from a year earlier. Despite the slight drop, officials said payments remained solid, particularly given elevated one-time payments in the prior year. Year-to-date collections reached $3.55 billion, up $282.8 million, or 8.7%.
Insurance Premium Tax collections totaled $30.7 million in March, down $26.6 million, or 46.4%. However, combined February and March collections — which reflect the timing of prepayments — totaled $336.7 million, up $23.3 million, or 7.4%, compared with the same period last year. Fiscal year-to-date collections for the tax stand at $286.6 million, an increase of $67.5 million, or 30.8%.
Realty Transfer Fee revenues totaled $31.3 million in March, down $2.9 million, or 8.4%. Officials said recent winter storms may have slowed home sales, affecting collections. Fiscal year-to-date revenue from the fee reached $372.2 million, up $28.3 million, or 8.2%.
Treasury officials said overall revenue performance remains close to expectations as the fiscal year progresses.
