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(TRENTON) - The Department of the Treasury reported that February revenue collections for the major taxes totaled $2.554 billion, up $220.0 million, or 9.4 percent above last February. Fiscal year-to-date, total collections of $20.511 billion are up $1.234 billion, or 6.4 percent above the same period last year.
With the release of the Governor’s FY 2021 proposed budget on February 25, Treasury issued revised revenue forecasts for FY 2020. In total, revenue estimates for the current fiscal year were increased by $948.2 million, a rise of 2.5 percent from the total certified in June at the adoption of the Appropriations Act.
Gross Income Tax (GIT) receipts of $1.184 billion are 11.3 percent above last February. Year-to-date collections of $9.528 billion are up 6.6 percent. The revised FY 2020 forecast was increased by $308.2 million due to solid growth so far this year. The GIT, which is constitutionally dedicated to the Property Tax Relief Fund, is the State’s largest tax revenue source.
The Sales and Use Tax, the largest General Fund revenue source, reported $719.5 million in February, up 7.2 percent over last February. Year-to-date, sales tax collections of $6.111 billion are up 5.6 percent from the same period last year. The revised FY 2020 forecast was increased by $164.0 million due to steady growth so far this year.
The Corporation Business Tax (CBT), the second largest General Fund revenue source, generated $34.5 million, 45.3 percent below last February. Year-to-date, the CBT has collected $2.049 billion, or 9.4 percent above the same period last year. February was the third consecutive month of declining CBT revenues. While declines are expected to continue for the remaining months of FY 2020, the strong growth between July and November has boosted the CBT such that the revised FY 2020 forecast was increased by $555.0 million.
The month of February typically represents a small percentage of overall revenue collections for the year. Any potential influence current events might have on tax revenue collections is not likely to be apparent immediately since many revenues, such as the Sales Tax, report with a one-month delay. The impact would also be predicated on the length and depth of changes in economic activity.
Treasury is closely monitoring the evolving situation surrounding COVID-19 and the sharp decline in the stock markets. In addition to these monthly public revenue updates (typically issued around the 10th business day of the month), the Treasurer will also provide detailed revenue updates to the legislative budget committees twice this spring during the budget process.