In its latest report released this afternoon, the state Treasury Department announced that through the first two months of the current fiscal year, it has fallen $24 million short of its projected total tax revenue of $2.04 billion, raking in just $2.016 billion thus far.The data accounts for the state’s total revenue coming in 1.2 percent shy of expectations up to this point.
A breakdown of sources shows that despite sales taxes coming in at a state record of $739 million for August, or 1.9 percent over the budgeted amount, the state’s projections have come up short in the areas of corporate, fuel and realty transfer taxes.
Revenue sources such as casino, tobacco and transfer inheritance taxes either met expectations or were close to meeting them.
Included in the report are comments from the department’s chief economist, Charles Steindel, who noted that the increase in sales tax collections “likely reflected a strong increase in car sales as well as step-up in construction activity.”
He added that “sales tax collections have run ahead of their budgeted amount every month this year, except in February, when they ran even with the forecast amount.”
Treasurer Andrew Sidamon-Eristoff said the increase in sales tax collection spoke to a greater positive trend across the state.
“The continued strength and stability of New Jersey’s sales and income tax collections are key indicators of the consistency and resilience of our continuing economic recovery,” Sidamon-Eristoff said in the report.