The Department of the Treasury reported October revenue collections were above targeted growth, with collections for the major taxes totaling $2.639 billion, up $361.9 million, or 15.9% above last October. Year-to-date, total collections of $8.781 billion are up $784.4 million, or 9.8% above the same period last year.
According to Treasury, “The Corporation Business Tax (CBT), which was also boosted in part by strong final extension payments, reported $210.4 million, which is 165.3% above last October. Year-to-date through October, the CBT has collected $1.143 billion, or 24.4% more than last year. Growth is projected to moderate and decline in the coming months, because significant non-recurring payments received last year are not expected to repeat, and the temporary 2.5% surtax rate will drop to 1.5% on January 1, 2020.”
They further stated, “As noted in last month’s September revenue update, concerns have been expressed by tax analysts that corporations may currently be overpaying state taxes up front while they analyze the tax base implications flowing from the federal Tax Cut and Jobs Act. In the current low interest rate environment, the cost of overpaying taxes is minimal. Accordingly, it is anticipated that corporations may begin filing for large refunds or reducing their tax payments once they have a better idea of their true tax liability.”
NJBIA believes that while some may agree with the general observation made by Treasury, many businesses are still digesting tax reform. Furthermore, the vast majority of corporate taxpayers attempt to be as accurate as possible when approximating their annual tax liability and remitting estimated payments throughout the year.
To find a full copy of the release, please click here.