The state Department of the Treasury reported that July revenue collections are on target as the new fiscal year gets underway, with collections for the major taxes totaling $2.33 billion, up $250.1 million, or 12%, compared to last July.
The Gross Income Tax (GIT), which is dedicated to the Property Tax Relief Fund, continues to perform well with July collections totaling $948.9 million, up $127.5 million, or 15.5%, above last July.
The Sales and Use Tax, the largest General Fund revenue source, totaled $1.02 billion, up $49.2 million, or 5.1%, above last July. While the Sales and Use Tax grew at a solid pace because of various tax policy changes enacted last year, baseline Sales Tax collections grew at a more modest pace.
The Corporation Business Tax (CBT), the other major General Fund revenue source, also continues to perform well, totaling $177.8 million for the month of July, up $43.8 million, or 32.6%, over last July. New Jersey is now more than halfway through the second year of a temporary, two-year 2.5% surtax in the CBT on income above $1 million. Beginning in January, the temporary surtax will decrease to 1.5% for two more years before phasing out.
Total revenues for the 13 months ending in July increased $3.175 billion, or 9.9%, due to numerous tax policy changes enacted last year.
July is effectively treated as the 13th month of the fiscal year because cash collections include revenues from both Fiscal Year 2019, which just ended, and Fiscal Year 2020, which has just begun. After the annual accounting process is completed, final collections for FY 2019 will be published in the Comprehensive Annual Financial Report (CAFR) due out in early 2020.