TRENTON – New Jersey’s Treasury collected $54 million more in income taxes in July than in July 2011, a sign that the state’s economy will generate the revenue necessary to meet the needs of taxpayers in fiscal 2013, said Treasurer Andrew Sidamon-Eristoff and Treasury Chief Economist Dr. Charles Steindel.
Combined, the state’s income, sales and corporate tax cash collections rose by $40 million, or 2.9 percent, to $1.402 billion. Corporate tax collections were $19 million, or 26.4 percent higher, while sales taxes were $33.5 million, or 4.4 percent, lower than in July 2011. Collections for all of the state’s major revenues totaled $1.533 billion, up 2.5 percent.
“An inflow of $577 million in income tax is a welcome indicator that New Jersey’s economy and personal incomes are continuing to grow,” Dr. Steindel said. “Average personal income in the state has risen 2.9 percent this year and is up 6.9 percent since the first quarter of 2010.”
Because the state’s fiscal year ends on June 30, July cash collections are allocated between the fiscal year that has just ended and the new year. That allocation process is continuing and the results are preliminary at this time.
“Allocating additional July revenue for the closeout of fiscal 2012 is a prudent action based on sound accounting practice and consistent with prior years,” Sidamon-Eristoff said. “The fact that July collections were significantly higher is a clear signal that the economy continues to grow.”