Office of the State Treasurer


October 14, 2005

Kathy Hennessy
(609) 984-7110

FY06 Revenues On Target

 TRENTON -- Treasurer John E. McCormac announced today that New Jersey’s revenue collections through the first quarter of FY 2006 total $5.84 billion, which is within 1 percent of projections for the first three months of the new fiscal year.

Among the major taxes, Gross Income Tax collections for the first three months total $1.93 billion, which is $46.475 million above target. The Corporate Business Tax, at $459.7 million, is running 2.9 percent ahead of estimates. Sales Tax revenues, which total $1.74 billion, were $25.2 million (-1.4 percent) behind estimates. Total revenues are $35.2 million, or -0.6 percent, under the first quarter target.

“At three months into the new fiscal year, revenues are close to projections,” said Treasurer McCormac. “Going forward, we need to closely monitor the performance of all taxes, especially the Sales Tax.”

For September, collections from the Gross Income Tax and Corporation Business Tax were in line with monthly projections, while Sales Tax revenue dipped $15.7 million below estimates.

“The bottom line is that our residents have less disposable income for dining out, shopping and entertainment because of the higher gas prices,” said McCormac. “And it will only get worse with the projected rise in home heating costs this winter. So, while overall revenue performance is in line with projections to date, we expect that the Sales Tax will fall well below the targets for this fiscal year. We hope that shortages in our Sales Tax collections will be offset by increases in other revenues.” McCormac said.

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