Two months into the 2020 fiscal year, the state Department of the Treasury reports that August revenue collections were on target. They totaled $2.075 billion for the major taxes, up $10.2 million, or 0.5%, compared to last August’s take.
All good news for the cash-strapped Garden State, but there’s no call for undue exuberance. As a press statement from the Treasury noted, the first two months of the fiscal year are not considered a bellwether, given there are no significant due dates for any of the major taxes and most of the revenue collected in July is attributed to the previous fiscal year.
August collections for the Gross Income Tax, which is dedicated to the Property Tax Relief Fund, came to $853.9 million, down $56.5 million, or 6.2 percent below last August; the decline was attributed to a timing shift of one weekly employer withholding payment from August to July compared to last year.
The Sales and Use Tax, the largest General Fund revenue source, was up 8.1 percent in August, the first month of collections for this revenue in FY2020. The Corporation Business Tax is the second largest General Fund revenue; it brought in $38.6 million in August, down 13.5 percent from the same month last year. Watch out for the figures for September, when significant quarterly estimated payments are due.