TRENTON — The Department of the Treasury reported Monday that August revenue collections are on target two months into the new fiscal year.
August collections for the major taxes totaled $2.065 billion, up $84.0 million, or 4.2 percent, compared to last August. Year-to-date, total collections of $2.425 billion are up $198.0 million, or 8.9 percent above the same two months last year.
August collections for the Gross Income Tax (GIT), which is dedicated to the Property Tax Relief Fund, totaled $910.4 million, up $51.6 million, or 6.0 percent, above last August. The GIT is up 6.7 percent year-to-date through the end of August.
The Sales and Use Tax, the largest General Fund revenue source, was up 2.0 percent in August, the first month of collections for this revenue in FY 2019 due to a one-month collections accrual. The second step of the sales tax rate reduction that began on January 1, 2018 will continue to impact collections through the end of 2018. If not for the rate reduction, underlying growth in the sales tax in August would be 5.8 percent above last August.
The Corporation Business Tax (CBT), the second largest General Fund revenue, brought in $44.7 million, or double the amount reported last August. Year-to-date through August, the CBT is up $104.4 million, or 126.7 percent over last year. While these collections are positive, the first two months of the fiscal year are relatively small for the CBT and not a reliable trend indicator. The first important month will be September, due to the significant quarterly estimated payments. September CBT typically reports three to four times the revenue of July and August combined.