NJ Treasury: January revenue collections continue on target, year-to-date revenues up 2.9 percent over prior year
NEW JERSEY – The Department of the Treasury reported that January revenue collections for the major taxes totaled $5.326 billion, up $232.5 million, or 4.6 percent over last year.
The growth in total revenues was led by higher collections from the Gross Income Tax (GIT), the Sales and Use Tax (SUT), and the Pass-Through Business Alternative Income Tax (PTBAIT). Fiscal year-to-date, total major revenue revenues of $23.932 billion are up $671.7 million, or 2.9 percent from the same period last year. Treasury expects revenues to perform better in the second half of Fiscal Year 2025, when most of the new Corporate Transit Fee collections should be received.
January collections for the GIT, which are dedicated to the Property Tax Relief Fund, totaled $2.695 billion, up $214.8 million, or 8.7 percent above last year. The revenue growth was driven by higher employer withholding collections and estimated payments. Fiscal year-to-date, GIT revenues of $10.196 billion are up $720.1 million, or 7.6 percent above last year.
The SUT, the largest General Fund revenue source, totaled $1.493 billion in January, up $52.5 million, or 3.6 percent over last year. January’s collections reflect consumer holiday activity in December due to a one-month lag in the reporting and payment of Sales Tax. Fiscal year-to-date collections of $7.009 billion are up by $222.6 million, or 3.3 percent over last year.
The Corporation Business Tax (CBT), the second largest General Fund revenue source, totaled $197.6 million in January, down $35.0 million, or 15.0 percent lower than last year. The decrease in CBT revenues reflects continued weakness in estimated payments. Fiscal year-to-date collections of $2.229 billion are down $261.5 million, or 10.5 percent.
January collections for the PTBAIT totaled $529.4 million, higher by $28.4 million, or 5.7 percent above last year. The increase was primarily from estimated payments, while moderately higher refunds partially offset overall payment growth. Fiscal year-to-date collections of $2.282 billion are down $79.6 million, or 3.4 percent compared with the same period last year.
Petroleum Products Gross Receipts Tax (PPGRT) revenues of $129.0 million were down $1.9 million, or 1.5 percent lower than last January. Fiscal year-to-date collections of $751.7 million are up $10.1 million, or 1.4 percent over last year. Effective January 1, 2025, the PPGRT rate was increased by 2.6 cents. That rate change will begin to impact FY2025 revenue collections starting in February.
Realty Transfer Fee revenues of $45.0 million were up $16.1 million, or 55.6 percent above last January, and have now reported positive growth for eight of the past nine months. Fiscal year-to-date, revenues of $260.8 million are $30.6 million, or 13.3 percent above last year.
Treasury notes that with the pending release of the Governor’s Budget Message for FY2026, updated FY2025 revenue forecasts will also be provided at the end of February.
