Treasury: Fiscal Year-to-Date Collections Remain on TargetDecember Revenues Up 9.2 Percent, Partially Driven by Extra GIT Withholding Payment

Treasury: Fiscal Year-to-Date Collections Remain on Target
December Revenues Up 9.2 Percent, Partially Driven by Extra GIT Withholding Payment

(TRENTON) - The Department of the Treasury reported that December revenue collections for the major taxes totaled $5.166 billion, up $433.9 million, or 9.2 percent over last December. The revenue growth was driven primarily by the Gross Income Tax (GIT), while the Sales and Use Tax (SUT) and Corporation Business Tax (CBT) collections were both down. Fiscal year-to-date total collections of $19.502 billion are higher by $896.1 million, or 4.8 percent above last year, currently exceeding the FY 2026 Appropriations Act certified growth rate of 3.3 percent.

December collections for the GIT, which are dedicated to the Property Tax Relief Fund, totaled $2.047 billion, up $335.5 million, or 19.6 percent above last year. All four GIT components registered increases in revenues, but refunds were higher as well. However, the revenue growth was influenced by an extra Wednesday withholding payment compared with last December. GIT collections would have been up by $39.0 million, or 1.9 percent above last year, after adjusting for the extra withholding payment. Fiscal year-to-date collections of $8.463 billion are up by $961.9 million, or 12.8 percent.

The SUT, the largest General Fund revenue source, totaled $983.0 million, down $44.6 million, or 4.3 percent lower than last December. Due to a one-month lag in the reporting and payment of the Sales Tax, December revenues reflect consumer activity in November, while Sales Tax receipts in January will reflect holiday shopping in December. Fiscal year-to-date collections of $5.675 billion are up $158.9 million, or 2.9 percent above last year.

The CBT, the second largest General Fund revenue source, totaled $704.2 million, down $20.9 million, or 2.9 percent below last December. The reduction was primarily due to lower estimated payments, partially made up for by higher final payments and partnership payments, and by lower refunds. Fiscal year-to-date collections of $1.353 billion are down $678.8 million, or 33.4 percent below last year. The weakness in CBT revenues this fiscal year continues to be driven by significantly higher refunds, many of which have been claimed for tax periods prior to 2024, and substantial declines in both final and estimated payments.

Pass-Through Business Alternative Income Tax (PTBAIT) revenues totaled $1.082 billion in December, up $184.2 million, or 20.5 percent above last year. PTBAIT revenues increased primarily due to higher collections from estimated payments and substantially lower refunds. Fiscal year-to-date revenues of $2.040 billion are now higher by $287.5 million, or 16.4 percent above last year.

Petroleum Products Gross Receipts Tax (PPGRT) revenues in December of $124.5 million were higher by $5.2 million, or 4.3 percent over last December. Fiscal year-to-date collections of $656.8 million are now up by $34.1 million, or 5.5 percent above last year. The recently announced increase in the PPGRT of 4.2 cents per gallon took effect on January 1, 2026, and will begin impacting revenues in the February report, due to the one-month lag in reporting.

Casino revenues totaled $81.2 million in December, an increase of $24.0 million, or 42.0 percent above last year. The increasing popularity of internet gaming and sports betting are two of the main drivers behind the growth in casino revenues. Collections this fiscal year will also be impacted by the enactment of P.L.2025, Chapter 66 (eff. July 1, 2025), which increased internet casino gaming and sports wagering taxes. Fiscal year-to-date revenues of $405.2 million are now running $123.8 million, or 44.0 percent above last year.

Please see the attached chart for monthly and yearly revenue collection comparisons.