Treasury:  October Major Revenues Stable

(TRENTON) — The Department of the Treasury reported today that October revenue collections for the major taxes totaled $3.024 billion, a decrease of $12.9 million, or 0.4 percent below last year. Fiscal year-to-date, total major revenues of $11.239 billion are up $322.6 million, or 3.0 percent over last year.

October collections for the Gross Income Tax (GIT), which is dedicated to the Property Tax Relief Fund, totaled $1.336 billion, up $226.7 million, or 20.4 percent above last year. GIT revenues would have instead been $36.0 million higher, or 2.8 percent above last October, after adjusting for an extra Wednesday withholding payment compared to last October. Collections from estimated payments were higher, while final payments were lower. Fiscal year-to-date, GIT revenues of $4.650 billion are higher by $410.3 million, or 9.7 percent compared with last year.

The Sales and Use Tax (SUT), the largest General Fund revenue source, totaled $1.298 billion, up $21.3 million, or 1.7 percent over last October. SUT collections growth, while generally positive, has trended below the rate of regional core inflation for all but two of the past fifteen months. Fiscal year-to-date collections of $3.455 billion are up $69.1 million, or 2.0 percent.

The Corporation Business Tax (CBT), the second largest General Fund revenue source, totaled $64.8 million in October, a reduction of $218.8 million, or 77.1 percent from last year. This revenue decline was primarily due to a large non-recurring CBT-Banks settlement payment of $195 million that was received last October.  Fiscal year-to-date collections of $1.271 billion are now lower by $165.3 million, or 11.5 percent.

Pass-Through Business Alternative Income Tax (PTBAIT) revenues totaled negative $3.9 million in October, $48.1 million below last year. PTBAIT final and estimated payments both declined, but the results for the month were primarily impacted by an expected higher level of refunds.  The increase in refunds by $31.9 million was related to auditing and review procedures that delayed the issuance of certain refunds from September into October.  Fiscal year-to-date revenues of $812.8 million are up by $12.8 million, or 1.6 percent over last year.

Realty Transfer Fee revenues of $41.8 million were up $2.8 million, or 7.3 percent above last October, reporting positive growth for five of the past six months. Fiscal year-to-date, revenues of $131.8 million are up $7.4 million, or 6.0 percent over last year. The Fed is expected to make additional rate cuts beyond the quarter-point reduction earlier in November, which should deliver some relief from the higher mortgage rates of the past couple of years.