NJ Tax Collections Plunge by Billions – But That’s OK, State Says
TRENTON – State tax collections performed as expected in May, according to state Treasury Department officials who say the big drop from a year earlier was anticipated because the income tax filing deadline had returned to its normal date in April.
The state collected $3.282 billion in revenue in May – a nearly 39% plunge, or $2.072 billion. That was almost entirely reflected by a drop in income tax collections, as the typical tax-deadline surge last year had been postponed to May 17 due to the pandemic, just as the federal government had done.
Over the first 11 months of fiscal 2022, the state has collected $40.816 billion in revenue. That’s almost 20% higher than the same period in fiscal 2021, an increase of $6.679 billion.
The report appears to bring no last-minute surprises to this month’s 2023 state budget negotiations. Treasury officials say overall revenues through May are tracking closely to their revised forecast for the year, which in May was increased by $4.5 billion from the expectation in March.
The state has collected $18.166 billion in income taxes this fiscal year so far, with the anticipation of finishing the year with $20.346 billion.
Collections from a tax called PTBAIT – the Pass-Through Business Alternative Income Tax, which was created to restore a tax benefit to businesses lost after the 2017 federal tax changes – were 83% smaller last month than in May 2021.
However, that’s because the PTBAIT quarterly payment filing deadline got delayed until June 15, so significant additional growth is expected this month – on top of the $1.255 billion jump, 69%, that has year-to-date collections at $3.086 billion already.
The traditional corporation business tax was 2% smaller than the previous May. The Treasury said final payments grew but were offset by a decline in estimated payments and a surge in refunds. For the year, the tax has generated $4.564 billion so far, a number expected to reach $5.496 billion.
The sales tax yielded just over $1 billion for a month, up $100 million or 11% from a year earlier at $996.2 million. Revenues are $10.210 billion for the fiscal year and are expected to finish at $12.334 billion, according to the revised budget.