TRENTON – Tax collections are $230.3 million below February’s revised forecasts for the first ten months of the fiscal year, according to the State Treasury.
Collections for Fiscal Year 2012 now stand at $19.3 billion, up from $18.8 billion during the same period last year. However, April collections were $3.26 billion, down from $3.32 billion a year earlier.
“While April’s revenues were somewhat below expectations, reliable indicators show that New Jersey’s economy continues to grow,” said Dr. Charles Steindel, Treasury chief economist. “Economic growth has brought in more revenue for the state in Fiscal Year 2012 than in 2011, which is a good sign for the future.”
For the year-to-date, income tax collections are up 2 percent from last year at $8.6 billion, and sales taxes have climbed 3.1 percent to $5.9 billion. Corporate business taxes are up 0.7 percent at nearly $1.8 billion. Motor vehicle fee collections have risen 16.3 percent to $330.7 million.
April income tax collections were $1.73 billion compared to $1.75 billion in Fiscal Year 2011. Sales taxes were $732.8 million, up from $705.8 million. Corporation business taxes were $463 million, down from $547.1 million.
One Democrat took Gov. Chris Christie to task for his optimistic revenue projections, which are the basis for funding a proposed across-the-board income tax cut in the next state budget that would deliver a greater amount of money to people with higher incomes.
“Today’s revenue report is the latest evidence of why Gov. Christie’s proposed income tax scheme is wrong for middle-class families,” said Assembly Majority Leader Lou Greenwald (D-Camden/Burlington.)
“Not only does the Governor’s plan to shower $7,000 in tax break handouts to millionaires while giving crumbs to the middle-class, but it’s now becoming clear the governor has built his plan on a shaky foundation…. By asking millionaires and billionaires to give up the tax breaks they have enjoyed during the past two years, the Assembly Democratic plan has a more fiscally responsible funding mechanism.”
The Assembly and State Senate, both controlled by Democrats, have announced alternate plans to reduce taxes for New Jersey residents by providing increased property tax credits.
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