Treasury: August Revenue Collections Continue Rebound Trend
TRENTON — The Department of the Treasury reported that August revenue collections for the major taxes totaled $2.446 billion, up $488.7 million, or 25.0 percent above last August. Year-to-date, total collections of $2.780 billion are up $659.8 million, or 30.8 percent above the same two initial months last year.
August collections for the Gross Income Tax (GIT), which is dedicated to the Property Tax Relief Fund, totaled $1.021 billion, up $212.8 million, or 26.3 percent above last August. Year-to-date collections are up $425.0 million, or 57.8 percent.
Growth is spurred by recovering employee withholding collections compared to weaker levels during the pandemic last summer. Refund levels are also returning to normal after delayed taxpayer filing deadlines last year.
The Sales and Use Tax, the largest General Fund revenue source, reported $970.3 million, an increase of $79.5 million, or 8.9 percent above last August. The consumer spending rebound continues, as August Sales Tax collections are 12.0 percent above pre-pandemic levels in August 2019. Due to the one-month lag in Sales Tax collections, August revenue reflects consumer activity in July.
Lastly, the Corporation Business Tax (CBT), the second largest General Fund revenue source, reported $52.6 million in August, well above the $28.0 million decline witnessed last August, which was the result of last year’s corporate filing delay when refund payouts exceeded taxpayer payments. Year-to-date through August, CBT collections of $208.2 million are up $65.7 million, or 46.0 percent above the same period last year.
While overall collections are up soundly compared to last year, the first two months of the fiscal year are relatively small. The first meaningful month will be September because of the significant quarterly estimated payments that are due under the GIT and the CBT. Treasury expects FY 2022 collections growth to moderate into the winter months as the impact of the COVID-19 pandemic eases and the substantial federal income stimulus fades.
Please see the attached chart for monthly and yearly revenue comparisons.