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(TRENTON) - The Department of the Treasury reported that May revenue collections for the major taxes totaled $2.452 billion, down $142 million, or 5.5 percent below last May, after rebounding in April. However, fiscal year-to-date revenues are on track to meet Treasury’s updated year-end projections with $29.361 billion collected in total, up $2.576 billion, or 9.6 percent, over the same period last year.
In budget testimony last month, State Treasurer Elizabeth Maher Muoio noted that May revenues were expected to decline due to the record Gross Income Tax (GIT) collections the state recorded in April, which captured some of the revenue that typically isn’t processed until May. As a result, GIT receipts of $684 million, which are constitutionally dedicated to the Property Tax Relief Fund, are down 30.9 percent compared to last May. In total, year-to-date GIT collections of $14.425 billion are performing in line with revised expectations, up 4.8 percent or $624 million in FY2019.
The Sales and Use Tax, the largest General Fund revenue source, reported $766.0 million in May, up 3.5 percent. Total Sales Tax collections of $8.098 billion are up $262 million, or 3.3 percent from the same period last year.
The Corporation Business Tax (CBT), the second largest General Fund revenue source, generated $137.7 million in May, boosting year-to-date CBT collections to $3.248 billion, or 95.6 percent above last year. The CBT for banks and financial institutions is also up 188.5 percent so far in FY2019. Corporate tax revenues are growing significantly in FY2019 due to substantial state and federal tax policy changes that influence tax rates, the tax base, and the timing of certain retroactive payments. However, as the Treasurer noted in her May budget testimony, nearly one-half of CBT revenue growth – about $721 million – is comprised of one-time revenues that are boosting the FY2019 fiscal situation, but will not recur in FY2020.
Petroleum Products Gross Receipts Tax revenues are up 11.9 percent in May, and the year-to-date total of $1.244 billion is 8.7 percent above the same point last year.
Casino Revenues of $229.1 million are running 22.3 percent ahead of last year through the end of May. Sports betting has generated a total of $22.3 million in tax revenue through the end of May, with $10.3 million going to the Casino Revenue Fund and $12.0 million going to the General Fund.
There are two weeks remaining in the current fiscal year before the constitutionally mandated deadline to enact a new, balanced budget for Fiscal Year 2020.