Treasury: FY2025 Revenue Collections on Track through August

Revenues on Target Through the First Quarter of the Fiscal Year

(TRENTON) - The Department of the Treasury reported that September revenue collections for the major taxes totaled $4.926 billion, up $82.2 million, or 1.7 percent over last September, led by increases in the Gross Income Tax (GIT). Year-to-date, total collections of $8.215 billion are higher by $335.5 million, or 4.3 percent above the same period last fiscal year, tracking closely to FY 2025 projected growth.

September collections for the GIT, which are dedicated to the Property Tax Relief Fund, totaled $1.837 billion, up $153.7 million, or 9.1 percent above last year. Employer withholding collections and estimated payments showed growth while final payments and refunds were moderately lower. Fiscal year-to-date collections of $3.314 billion are higher by $183.7 million, or 5.9 percent.

The Sales and Use Tax (SUT), the largest General Fund revenue source, totaled $1.042 billion, up $25.0 million, or 2.5 percent over last year. Collections were higher as a consequence of the repeal of the weeklong tax holiday on back-to-school supplies, which had been in effect in 2022 and 2023. SUT collections growth, while generally positive, has trended below the rate of regional core inflation for all but two of the past fourteen months. Fiscal year-to-date collections of $2.158 billion are up $47.8 million, or 2.3 percent.

The Corporation Business Tax, the second largest General Fund revenue source, totaled $965.0 million in September, a decrease of $91.6 million, or 8.7 percent from last September. The revenue decline was primarily attributable to weakness in estimated payments. Fiscal year-to-date collections of $1.206 billion are higher by $53.5 million, or 4.6 percent.

Pass-Through Business Alternative Income Tax (PTBAIT) revenues totaled $761.7 million in September, lower by $6.6 million, or 0.9 percent below last year. PTBAIT final and estimated payments had declines that were mostly offset by significantly lower refunds, but the drop in refunds appears related to timing, thus a relatively large batch of refunds is expected in October. Fiscal year-to-date revenues of $816.7 million are up by $60.9 million, or 8.1 percent.

Casino revenues were $49.8 million in September, an increase of $7.7 million, or 18.3 percent over last year. The increasing popularity of internet gaming is one of the main drivers behind the growth in casino revenues. Fiscal year-to-date revenues of $119.2 million are up by $11.1 million, or 10.3 percent.

Realty Transfer Fee revenues of $44.8 million were up $778,000, or 1.8 percent above last September, reporting positive growth for four out of the past five months. Unit closed sales increased in August, contributing to growth in realty revenues since September collections are reflective of August's housing market activity. Realty collections should continue to grow over the coming months as prospective home buyers see some relief from the higher mortgage rates of the past couple of years.

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