Treasury: Revenues Through February In Line With Revised Forecast

TRENTON — The Department of the Treasury reported that February revenue collections for the major taxes totaled $2.743 billion, up $189.0 million, or 7.4 percent, over last February. Fiscal year-to-date, total revenue collections of $21.493 billion are up $982.3 million, or 4.8 percent above the same eight month period last year.

Year-to-date, total Fiscal Year (FY2021) revenue growth is in line with the recently revised year-end growth targets released on February 23 with the Governor’s Budget Message. The aggregate forecast increased by $3.2 billion from the level certified when the Appropriations Act was enacted in September. Substantial federal stimulus enacted last year, and the recently improving COVID-19 outlook, have strengthened economic activity and improved tax collections.

February collections for the Gross Income Tax (GIT), which is dedicated to the Property Tax Relief Fund, totaled $1.282 billion, up $97.4 million, or 8.2 percent, over last February. However, year-to-date, GIT collections of $9.282 billion are down $246.7 million, or 2.6 percent. The revised year-end forecast of $15.279 billion is up $263.3 million from the Appropriations Act.

The Sales and Use Tax, the largest General Fund revenue source, reported collections of $763.6 million in February, an increase of $44.1 million, or 6.1 percent. Due to the one-month lag in the reporting of Sales Tax collections, February revenues reflect January consumer activity, a month in which new federal stimulus payments helped boost national retail sales by 7.4 percent year-over-year, while consumer spending on goods increased 10.4 percent year-over-year. Year-to-date, Sales and Use Tax collections of $6.379 billion are up $261.8 million, or 4.4 percent. The revised year-end forecast of $10.623 billion is up $753.7 million from the Appropriations Act.

The Corporation Business Tax (CBT), which is the second largest General Fund revenue source, reported $88.6 million in February, up $54.1 million, or 156.9 percent above the same month last year. Year-to-date through February, CBT collections of $2.06 billion are up $10.3 million, or 0.5 percent. The revised year-end forecast of $3.438 billion is up $191.9 million from the Appropriations Act.