Treasury: July Revenue Collections Higher as New Fiscal Year Begins

Treasury: July Revenue Collections Higher as New Fiscal Year Begins

TRENTON - The Department of the Treasury reported today that July revenue collections for the major taxes totaled $3.237 billion, an increase of $397.8 million, or 14.0 percent above last year. The overall revenue growth was distorted due to an extra Wednesday Gross Income Tax (GIT) employer withholding payment day compared to last July. Total collections from the major taxes would have been higher by $206.0 million, or 6.8 percent, after adjusting for the extra withholding payment. Total revenues of $47.340 billion for the 13 months ending in July were up by $98.0 million, or 0.2 percent above the same 13-month period last year, in line with current expectations.

July collections for the GIT, which is dedicated to the Property Tax Relief Fund, totaled $1.334 billion, up $302.0 million, or 29.3 percent above last year. GIT revenues would have been $110.1 million higher, or 9.0 percent above last July after adjusting for the extra withholding payment. Revenues from estimated and final payments were also higher, while refunds were slightly lower.

The Sales and Use Tax (SUT), the largest General Fund revenue source, reported $1.367 billion, an increase of $12.7 million, or 0.9 percent above last July. SUT collections growth has trended below the rate of regional core inflation for ten of the past twelve months. The Corporation Business Tax, which is the second largest General Fund revenue source, totaled $220.4 million in July, an increase of $10.7 million, or 5.1 percent, mainly due to final payments coming in higher.

Pass-Through Business Alternative Income Tax (PTBAIT) payments totaled $34.8 million, an increase of $52.3 million over last July's negative balance. The revenue growth was attributable to a decline in refund activity and higher estimated payments. Realty Transfer revenues of $40.0 million in July were $9.1 million, or 18.5 percent lower than last year after two straight months of positive growth.

July is effectively treated as the 13th month of the fiscal year because cash collections include revenues from both Fiscal Year 2024, which just ended, and Fiscal Year 2025, which has just begun.

After the annual GASB accounting process is completed, final collections for FY 2024 will be published in the Annual Comprehensive Financial Report due out in early 2025.

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