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Tax collection gets updated estimate

NJBIZ STAFF//May 23, 2011//

Tax collection gets updated estimate

NJBIZ STAFF//May 23, 2011//

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Personal income tax revenue in New Jersey is running higher than estimated, but the state is bringing in less than expected in corporation business taxes, according to updates from the state treasurer and the nonpartisan Office of Legislative Services.

Treasurer Andrew Sidamon-Eristoff announced during state budget hearings May 17 and 18 that income tax revenue was $460 million higher than estimated for the fiscal year ending June 30, while increasing projections for the next fiscal year by $604 million.

However, the corporation business tax has raised $213 million less than estimated, and the projection for the next fiscal year was lowered by
$169 million.

OLS budget and finance officer David J. Rosen announced similar changes, though OLS’ estimated income tax revenue increases were larger than the treasurer’s.

Both Sidamon-Eristoff and Rosen said upper-income earners — including financial sector workers who are paid bonuses — were responsible for much of the increase in income-tax revenue.

– Andrew Kitchenman