October revenue collections in the state totaled $3.037 billion, up $64.1 million, or 2.2%, over last year, according to a Thursday release from the New Jersey Department of Treasury. Revenues grew mainly due to a $195 million multiyear settlement payment received under the Corporate Business Tax, which more than offset a decline in the Gross Income Tax. Year-to-date, total revenue collections of $10.917 billion are down $452.9 million, or 4%, from the same period last fiscal year.
October collections for the GIT, which are dedicated to the Property Tax Relief Fund, totaled $1.109 billion, down $189.3 million, or 14.6% lower than last year.
Employer withholding collections continued showing strength in the face of a slowing labor market. Declines in estimated and final payments, and higher refunds, once again more than offset the revenue increase from withholding. Fiscal year-to-date collections of $4.240 billion are down $433.7 million, or 9.3%.
The Sales and Use Tax, the largest General Fund revenue source, totaled $1.276 billion in October, up $11 million, or 0.9% over last year.
Due to a one-month lag in the reporting and payment of Sales Tax, October revenue reflects consumer activity in September. October collections also reflected the latter part of New Jersey’s Back-to-School Sales Tax Holiday, which ran from Aug. 26 through Sept. 4. Fiscal year-to-date collections of $3.386 billion are up $16.5 million, or 0.5%.
The Corporate Business Tax, the second-largest General Fund revenue source, totaled $283.6 million in October, an increase of $210.8 million, or 289.6%, over last October. Again, this significant increase is due to a $195 million multiyear settlement booked under the CBT. Fiscal year-to-date collections of $1.437 billion are up $13.3 million, or 0.9%.