Treasury: March Major Revenues on Target

Treasury: March Major Revenues on Target

(TRENTON) - The Department of the Treasury reported today that March revenue collections for the major taxes totaled $4.321 billion, an increase of about $370.0 million, or 9.4 percent above last year. The growth in total revenues was mainly driven by the Gross Income Tax (GIT), in particular, a steep decline in refund issuances related to timing. Fiscal year to date, total major revenues of $32.313 billion are up $1.249 billion, or 4.0 percent, compared with the same period last year and tracking close to targets.

March GIT collections, which support the Property Tax Relief Fund, totaled $1.595 billion, an increase of $486.7 million, or 43.9 percent above last year. The increase in revenues was due primarily to lower refunds, while both employer withholding collections and final payments realized gains. Refunds were lower due to a timing mismatch, as the first large tranche for Tax Year 2025 was paid-out in late February, as opposed to the usual time in early March. Fiscal year to date, GIT revenues of $14.063 billion are up $1.306 billion, or 10.2 percent.

The Sales and Use Tax (SUT), the largest General Fund revenue source, totaled $883.5 million in March, a decrease of $21.8 million, or 2.4 percent below last year. March collections, which reflect February economic activity due to a one-month payment lag, may have suffered due to the February winter storms which likely suppressed consumer activity. Fiscal year to date SUT collections of $9.081 billion are $213.0 million higher, or 2.4 percent above last year.

The Corporation Business Tax (CBT), the second largest General Fund revenue source, totaled $368.5 million in March, down $91.3 million, or 19.9 percent from last year. Fiscal year to date, CBT revenues of $1.757 billion are down $952.6 million, or 35.2 percent, due to elevated refund levels - many tied to prior year tax periods - and broad declines in final and estimated payments.

Net collections from the Pass Through Business Alternative Income Tax (PTBAIT) totaled $929.8 million in March, down $9.3 million, or 1.0 percent compared with last year. March includes the annual return due dates for most calendar year filers, and payments were promising despite last year's base being elevated due to significant non-recurring payments. Fiscal year to date, PTBAIT revenues of $3.550 billion are up $282.8 million, or 8.7 percent.

For the Insurance Premium Tax (IPT), March 1 marks the due date for the first prepayment of half of the estimated calendar year liability for IPT payers. While the majority of payments are received in late February, early March sees collections as well. March IPT collections totaled $30.7 million, down $26.6 million, or 46.4 percent from last year. Combined February and March collections of $336.7 million were $23.3 million, or 7.4 percent higher than the combined total for the same time period last year. Fiscal year to date IPT revenues of $286.6 million are up $67.5 million, or 30.8 percent.

Realty Transfer Fee revenues totaled $31.3 million in March, a decrease of $2.9 million, or 8.4 percent below last year. The winter storms experienced over the past few months may have caused a temporary slowdown in home sales, which in turn impact Realty Transfer collections. Fiscal year to date revenues of $372.2 million are up $28.3 million, or 8.2 percent.

Please see the attached chart for monthly and year to date revenue comparisons .