Treasury: Revenue up slightly in January; collections down 1.4%

January revenue collections in the state totaled $5.094 billion, up $200.9 million, or 4.1%, over last year, according to a Wednesday release from the New Jersey Department of the Treasury.

The growth in total revenues was led by higher collections from the Gross Income Tax, the Sales and Use Tax, and the Pass-Through Business Alternative Income Tax. Fiscal year-to-date, total revenue collections of $23.26 billion are down $329.1 million, or 1.4%, from the same period last year.

January collections for the Gross Income Tax, which are dedicated to the Property Tax Relief Fund, totaled $2.48 billion, higher by $92.6 million, or 3.9% above last year.

The revenue growth was distorted due to an extra Wednesday employer withholding payment day compared with last January, and partially offset by a substantial decline in fourth-quarter estimated payments.

GIT revenues would have been down $154.6 million, or 5.9% below last January, after adjusting for the extra withholding payment. Fiscal year-to-date, GIT revenues of $9.476 billion are down $351.2 million, or 3.6% below last year.

The Sales and Use Tax, the largest General Fund revenue source, totaled $1.44 billion in January, up $42.4 million, or 3% over last year.

January’s collections registered the highest growth rate over the past nine months, driven by relatively strong holiday spending, as January revenue reflects consumer activity in December due to a one-month lag in the reporting and payment of Sales Tax.

The Corporate Business Tax, the second largest General Fund revenue source, totaled $232.6 million in January, down $16.9 million, or 6.8% lower than last year.