TRENTON – While the state treasurer trumpeted August revenue figures that were higher than those realized in 2011, they still weren’t good enough to meet budget projections. Two months into fiscal year 2013, New Jersey’s revenues are 4.9 percent under budget leaving the state nearly $100 million short according to figures releases yesterday.
“Income tax and corporation business taxes are showing welcome strength,” Treasurer Andrew Sidamon-Eristoff said. “Both July and August income tax were strong, and August even beat the pre-recession results of Fiscal 2008. This was the highest collection of income tax in state history for the month of August.”
August gross income tax collections surged, rising 3.1 percent above year-earlier figures to $673.2 million, but were still 4.5 percent below projections. Corporation business taxes for the month were also strong, climbing to $52.8 million, 12.4 percent above last year’s levels but still 13.7 percent below projections.
Sales taxes fell 2.1 percent from August 2011 to $652.4 million, suggesting continued consumer unease with efforts to revive the national economy, said Dr. Charles Steindel, Treasury’s Chief Economist.
“We’ve experienced steady growth in New Jersey’s personal income over the last two years, and it’s now clear that some of that gain is being reflected in higher income tax collections,” said Dr. Steindel. “Nationally, consumer spending has been weak, and, unfortunately, that seems to be reflected in New Jersey’s sales tax returns.”
Earlier this week, credit rating agency Standard and Poor’s affirmed New Jersey’s AA- credit rating, but lowered the state’s outlook to negative.