(TRENTON) – The Department of the Treasury reported that February revenue collections for the major taxes totaled $2.743 billion, up $189.0 million, or 7.4 percent, over last February. Fiscal year-to-date, total revenue collections of $21.493 billion are up $982.3 million, or 4.8 percent above the same eight month period last year.
Year-to-date, total Fiscal Year (FY2021) revenue growth is in line with the recently revised year-end growth targets released on February 23 with the Governor’s Budget Message. The aggregate forecast increased by $3.2 billion from the level certified when the Appropriations Act was enacted in September. Substantial federal stimulus enacted last year, and the recently improving COVID-19 outlook, have strengthened economic activity and improved tax collections.
February collections for the Gross Income Tax (GIT), which is dedicated to the Property Tax Relief Fund, totaled $1.282 billion, up $97.4 million, or 8.2 percent, over last February. However, year-to-date, GIT collections of $9.282 billion are down $246.7 million, or 2.6 percent. The revised year-end forecast of $15.279 billion is up $263.3 million from the Appropriations Act.
The Sales and Use Tax, the largest General Fund revenue source, reported collections of $763.6 million in February, an increase of $44.1 million, or 6.1 percent. Due to the one-month lag in the reporting of Sales Tax collections, February revenues reflect January consumer activity, a month in which new federal stimulus payments helped boost national retail sales by 7.4 percent year-over-year, while consumer spending on goods increased 10.4 percent year-over-year. Year-to-date, Sales and Use Tax collections of $6.379 billion are up $261.8 million, or 4.4 percent. The revised year-end forecast of $10.623 billion is up $753.7 million from the Appropriations Act.
The Corporation Business Tax (CBT), which is the second largest General Fund revenue source, reported $88.6 million in February, up $54.1 million, or 156.9 percent above the same month last year. Year-to-date through February, CBT collections of $2.06 billion are up $10.3 million, or 0.5 percent. The revised year-end forecast of $3.438 billion is up $191.9 million from the Appropriations Act.
Please see the attached chart for monthly and yearly comparisons. In addition to these monthly public revenue updates, the Treasurer will also provide further details on revenue forecasts when she appears before the legislative budget committees twice this spring to discuss Governor Murphy’s proposed FY 2022 budget.