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Major Revenue Up Slightly in January

Total Revenue Collections Down 1.4% Year-to-Date

TRENTON - The Department of the Treasury reported that January revenue collections for the major taxes totaled $5.094 billion, up $200.9 million, or 4.1 percent over last year. The growth in total revenues was led by higher collections from the Gross Income Tax, the Sales and Use Tax, and the Pass-Through Business Alternative Income Tax. Fiscal year-to-date, total revenue collections of $23.260 billion are down $329.1 million, or 1.4 percent from the same period last year.

January collections for the Gross Income Tax (GIT), which are dedicated to the Property Tax Relief Fund, totaled $2.480 billion, higher by $92.6 million, or 3.9 percent above last year. The revenue growth was distorted due to an extra Wednesday employer withholding payment day compared to last January, and partially offset by a substantial decline in fourth quarter estimated payments. GIT revenues would have been down $154.6 million, or 5.9 percent below last January after adjusting for the extra withholding payment. Fiscal year-to-date, GIT revenues of $9.476 billion are down $351.2 million, or 3.6 percent below last year.

The Sales and Use Tax, the largest General Fund revenue source, totaled $1.440 billion in January, up $42.4 million, or 3.0 percent over last year. January's collections registered the highest growth rate over the past nine months, driven by relatively strong holiday spending, as January revenue reflects consumer activity in December due to a one-month lag in the reporting and payment of Sales Tax. Fiscal year-to-date collections of $6.786 billion are up by $49.0 million, or 0.7 percent over last year.

The Corporation Business Tax (CBT), the second largest General Fund revenue source, totaled $232.6 million in January, down $16.9 million, or 6.8 percent lower than last year. An increase in CBT estimated payments was more than offset by higher refunds and declines in the other revenue components. Fiscal year-to-date collections of $2.491 billion are down $140.2 million, or 5.3 percent from this point last year.

Pass-Through Business Alternative Income Tax (PTBAIT) collections totaled $501.0 million, higher by $80.3 million, or 19.1 percent above last January. The increase was primarily from estimated payments, while final payments were lower and refunds were moderately higher. Fiscal year-to-date collections of $2.362 billion are up $240.5 million, or 11.3 percent compared with the same period last year and continue to benefit significantly from taxpayers electing to pay PTBAIT for the first time.

Petroleum Products Gross Receipts Tax (PPGRT) revenues of $130.9 million were up $8.0 million, or 6.5 percent higher than last January. Fiscal year-to-date collections of $741.6 million were up $7.6 million, or 1.0 percent over last year. The tax rate was increased by 0.9 cents effective October 1, 2023. Adjusting for the differences in tax rates, baseline collections were up $4.6 million, or 4.3 percent higher than a year ago, with year-to-date collections up $8.8 million, or 1.4 percent from FY 2023.

Casino revenues totaled $51.1 million in January, up $7.1 million, or 16.2 percent higher than a year ago. Fiscal year-to-date collections of $291.6 million were $40.6 million, or 16.2 percent compared to the same period last year. Online gambling continues to grow year-over-year with January collections from internet gaming registering $4.3 million, or 19.0 percent higher than a year ago.

Treasury notes that with the pending release of the Governor's Budget Message for FY2025, updated FY2024 revenue forecasts will also be provided at the end of February.

Please see the attached chart for monthly and yearly revenue collection comparisons.