The state Department of the Treasury is reporting that August revenue collections for the major taxes totaled $2.811 billion, up $177.8 million, or 6.8% above last year.
More than half of the growth was attributable to the Gross Income Tax (GIT), while the Sales and Use Tax (SUT) and Casino Revenues also posted gains, the department announced earlier this week. Year-to-date, total revenue collections of $3.333 billion are up $43.3 million, or 1.3 % above the same period last fiscal year.
August collections for the GIT, which are dedicated to the Property Tax Relief Fund, totaled $1.258 billion, up $108.8 million, or 9.5% above last year. The increase in revenues was primarily due to higher collections from employer withholding, while refunds were lower. Fiscal year-to-date collections of $1.575 billion are higher by $97.0 million, or 6.6%.
The SUT, the largest General Fund revenue source, totaled $1.162 billion, an increase of $46.2 million, or 4.1% above August 2024. Due to a one-month lag in the reporting and payment of the Sales Tax, August revenue reflects consumer activity in July. SUT collections growth has trended above the rate of regional core inflation for the second time in the past five months.
The Corporation Business Tax (CBT), the second largest General Fund revenue source, finished the month at negative $38.0 million, down $61.9 million, or 258.6%, from last August. The decline in revenues was mainly due to significantly higher refunds. Fiscal year-to-date, CBT collections of $109.1 million are lower by $132.3 million, or 54.8%.
Casino revenues totaled $72.2 million in August, an increase of $21.7 million, or 43.1% above last year. The increasing popularity of internet gaming and sports betting are two of the main drivers behind the growth in casino revenues. Collections this fiscal year will also be impacted by the enactment of a new law enacted July 1 that increased internet casino gaming and sports wagering taxes. Fiscal year-to-date revenues of $91.2 million are higher by $21.8 million, or 31.5% over August 2024.
Realty Transfer collections of $51.6 million were up $6.4 million, or 14.2% above last August. The inventory of homes available for sale in New Jersey increased substantially for the third straight month: if this trend in housing supply continues it may lead to downward market pressure on home prices and higher unit sales.
While year-to-date revenue collections have started FY 2026 slightly below growth expectations, the first two months of the fiscal year are less significant than most other months. Revenue collections in September are typically larger than July and August combined, primarily because of the substantial quarterly estimated payments that are due under the GIT, CBT, and the Pass-Through Business Alternative Income Tax.
