For those that could not attend or were there and wanted to better remember what was discussed, I wanted to provide you all a recap of the January policy committee meeting where Treasury staff and Senator O’Scanlon presented. I hope this summary is helpful, and please feel free to reach out to me if you have any questions.
Revenues for the current FY20 State Budget remain strong. Now halfway through the fiscal year, general income tax (+5.7% compared to last year), sales tax (+7.6%) and CBT (+16.8%) are all well above last year’s numbers and above projections with total major tax revenues up 7.6% compared to the first six months of last year. That is against a projected growth rate of only 0.6%. This good news allowed Treasury to release the rest of what Governor Murphy had placed in reserve. Treasury did point out that CBT revenues, while still strong overall, were not as strong in December as the first five months of the fiscal year. That was in line with their previous cautionary statements.
As referenced in the aforementioned recap, Treasury is embarking on a new initiative to streamline the reinstatement and/or dissolution of registered businesses. For those of you with clients or colleagues that may be interested, please click here.