TRENTON – New Jersey’s tax revenue collections for May were 15 percent higher than in May 2011, according to data released today by state Treasurer Andrew Sidamon-Eristoff said. The collections were aided by an extra day of tax withholding and a refunding of bonds backed by cigarette taxes, but the revenue rose by 6.5 percent even after those benefits were factored out, the treasurer noted.
However, despite the tax revenue growth, collections still fell $36 million short of the target established by the Christie Administration.
The year-to-date tax collections are up 3.7 percent from the money collected in the first 11 months of Fiscal 2011. Year-to-date revenues total $21.4 billion compared to $20.6 billion in May of 2011. May revenue totaled $2.02 billion, up from $1.76 billion. May gross income tax collections totaled $701 million, a 26 percent increase. Corporation business taxes rose 22 percent to $118 million.
“May’s revenue collections confirm that New Jersey is seeing sustained economic growth,” Sidamon-Eristoff said. “As long as that growth continues, New Jersey will see increased stability in state government finances.”
“Based on the most recent statistics, personal income in New Jersey has reached record annualized levels exceeding $470 billion,” Treasury Chief Economist Charles Steindel said. “That additional income should generate faster revenue growth for all levels of government.”
May’s results were boosted by an increase in the number of days on which withholding taxes collected. Withholding taxes are generally collected on Wednesdays. There were five Wednesdays in May compared to four last year. The extra Wednesday added an estimated $94 million to collections. The cigarette bond refinancing generated $54 million.
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