Treasury: December Revenue Collections Lower by 3.1 Percent Primarily Due to Higher GIT and CBT Refunds
TRENTON - The Department of the Treasury reported that December revenue collections for the major taxes totaled $4.602 billion, down $144.8 million, or 3.1 percent below last year. Total revenues fell primarily as a result of higher refund disbursement from the Gross Income Tax and the Corporation Business Tax compared with last December. Year-to-date, total revenue collections of $18.166 billion are down $529.9 million, or 2.8 percent from the same period last fiscal year.
December collections for the Gross Income Tax, which are dedicated to the Property Tax Relief Fund, totaled $1.547 billion, down $24.8 million, or 1.6 percent from last year. Moderate growth in employer withholding collections was again offset by declines in estimated and final payments, and higher refunds. Fiscal year-to-date collections of $6.996 billion are down by $443.8 million, or 6.0 percent from last year.
The Sales and Use Tax (SUT), the largest General Fund revenue source, totaled $986.9 million in December, down $1.8 million, or effectively flat with last year. Due to a one-month lag in the reporting and payment of Sales Tax, December revenue reflects consumer activity in November. SUT collections growth has trended lower than the rate of regional inflation for eight straight months. Fiscal year-to-date collections of $5.346 billion are up slightly by $6.6 million, or 0.1 percent.
The Corporation Business Tax, the second largest General Fund revenue source, totaled $765.7 million in December, down $154.7 million, or 16.8 percent lower than last year. The decline was primarily driven by higher refunds, while final payments, partnership payments, and receipts from Banks & Financial Institutions were also lower. Fiscal year-to-date collections of $2.258 billion are down $123.3 million, or 5.2 percent from this point last year.
Pass-Through Business Alternative Income Tax (PTBAIT) collections totaled slightly over $1.0 billion, up $70.7 million, or 7.6 percent above last December. The increase was primarily from estimated payments, while the fourth quarter PTBAIT estimated payment deadline is not until January 15th, the majority of pass-through entities make payments by the end of December for federal tax planning purposes. Fiscal year-to-date collections of $1.861 billion are up $160.2 million, or 9.4 percent above last year.
Realty Transfer Fee revenues of $32.5 million were down $7.1 million, or 17.9 percent below last year. Reductions in unit closed sales have moderated over the past few months, while mortgage rates have continued to decline. Reductions in inventories of homes available for sale accelerated over the first half of 2023, exerting upward pressure on home prices, but have been decelerating since June. Fiscal year-to-date collections of $201.3 million are down $63.5 million, or 24.0 percent from last year.
Please see the attached chart for monthly and yearly revenue collection comparisons.
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