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Treasury: March Major Revenue Collections Lower by $285.2 Million
Year-to-Date Collections 2.3 percent lower than last year

TRENTON - The Department of the Treasury reported today that March revenue collections for the major taxes totaled $3.398 billion, down $285.2 million, or 7.7 percent below last year. Fiscal year-to-date, total major revenues of $29.460 billion are down $680.7 million, or 2.3 percent lower than the same period last year.

March collections for the Gross Income Tax (GIT), which are dedicated to the Property Tax Relief Fund, totaled $1.070 billion, up $2.4 million, or 0.2 percent above last year. The slight increase in revenues was primarily due to a lower level of refunds that offset most of the aggregate decline in GIT payments. Refunds were lower due to the acceleration of Tax Year 2023 refund issuances into late February, as opposed to the usual time frame of early March. This month's GIT employer withholding collections also included one less Wednesday payment day relative to last year. Fiscal year-to-date collections of $11.830 billion are down $459.6 million, or 3.7 percent lower than at the same point last year.

The Sales and Use Tax (SUT), the largest General Fund revenue source, totaled $878.8 million, an increase of $22.9 million, or 2.7 percent over last March, registering the second highest monthly growth rate this fiscal year. Due to a one-month lag in the reporting and payment of Sales Tax, March revenue reflects consumer activity in February. Fiscal year-to-date collections of $8.566 billion are running $88.7 million higher, or 1.0 percent above the same period last year. SUT collections growth has now trended lower than the rate of regional core inflation for eleven straight months.

The Corporation Business Tax (CBT), the second largest General Fund revenue source, totaled $325.7 million in March, a decrease of $90.5 million, or 21.7 percent lower than last year. CBT payments declined and refunds were once again higher. Fiscal year-to-date collections of $2.705 billion are now down $337.3 million, or 11.1 percent lower compared to the same period last year.

Pass-Through Business Alternative Income Tax (PTBAIT) payments totaled $674.1 million in March, down $97.1 million, or 12.6 percent below the same month last year. March includes the due dates for PTBAIT final and extension payments. The net decline in PTBAIT collections was primarily driven by lower extension and final payments, while estimated payments were higher compared with last March. Fiscal year-to-date revenues of $3.076 billion are up $145.9 million, or 5.0 percent above last year.

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, but a majority of payments are received in late February. March collections of $24.2 million were down $98.0 million, or 80.2 percent lower than March of the prior year. When combining February and March, IPT collections of $318.3 million were up $21.8 million, or 7.3 percent higher than the combined total for the same two-month period in 2023. Fiscal year-to-date collections through March of $319.0 million are down $27.0 million, or 7.8 percent below last year.

Petroleum Products Gross Receipts Tax (PPGRT) revenues of $109.8 million were down $11.9 million or 9.8 percent lower than last year. The monthly collections look weaker than they otherwise would this March because of a missing PPGRT payment from last February, which was made up for in March 2023. When removing the extra March 2023 payment, PPGRT revenue growth for the month would have been $5.1 million above last year, or 4.8 percent higher. Fiscal year-to-date collections totaling $963.2 million are up $14.4 million, or 1.5 percent above last year.

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