New Jersey opened the new fiscal year with stronger-than-expected tax collections, as major revenues rose 9.2% in July compared with the same month last year.
The state Department of the Treasury reported that major tax collections totaled $3.632 billion in July, an increase of $306.4 million from a year earlier.
The biggest increase came from the Sales and Use Tax, which brought in $1.664 billion, up 18.6% from last July. Treasury officials said the growth appears to be tied to activity in sectors such as information technology, data centers and artificial intelligence. They also noted that some of the increase likely came from economic activity related to the FIFA World Cup.
Corporate tax collections also rose sharply. The Corporation Business Tax generated $282 million in July, up 66.7% from the same month last year, largely because of higher estimated payments and lower refunds.
Not every category increased. Gross Income Tax collections fell 8% to $1.353 billion, although Treasury said much of that decline was connected to the timing of employer withholding payments that shifted into June.
Overall, major revenues for the 13-month period ending in July reached $53.373 billion, up 6.4% compared with the same period a year earlier. July is treated somewhat differently in state accounting because it includes collections tied to both the fiscal year that just ended and the new one that has begun.
The stronger July numbers offer some additional breathing room for Gov. Mikie Sherrill’s administration as it begins operating under the new $60.7 billion FY2027 state budget, which includes more than $6 billion in surplus and a reduced structural deficit.
The numbers also offer an early glimpse at the economic impact of the World Cup, which brought major international events and visitors to New Jersey this summer.
Source: New Jersey Department of the Treasury.
By NJ RADAR Team