Department of the Treasury
(TRENTON) - The Department of the Treasury reported today that May revenue collections for the major taxes totaled $2.120 billion, down $331.2 million, or 13.5 percent, below last May as the economic impact of the global pandemic continues to take its toll on the State's finances. Fiscal year-to-date, total collections of $26.864 billion are now down $2.498 billion, or 8.5 percent below the same period last year.
The Gross Income Tax (GIT), which is constitutionally dedicated to the Property Tax Relief Fund and is the State's largest tax revenue source, posted May collections of $680.8 million, 0.5 percent below last May. Year-to-date collections of $11.803 billion are down 14.2 percent. In contrast, GIT revenue collections through the end of March were growing by 7.1 percent, prior to the onset of the pandemic-induced revenue deterioration. Treasury expects a portion of the year-to-date shortfall to be made up during July, when deferred April tax payments are due, although just how much remains to be seen as it is likely more taxpayers than usual will request extensions.
The Sales and Use Tax, the largest General Fund revenue source, reported collections of $544.1 million in May, down a remarkable 29.0 percent below last May. By comparison, the worst Sales Tax month during the Great Recession saw a decline of 18.4 percent in June 2009. Year-to-date, Sales Tax collections of $8.074 billion are down 0.3 percent from the same period last year. Because the Sales Tax reports with a one-month lag, the May collections reflect consumer behavior during April, the first full month of COVID-based restrictions.
Treasury noted that despite the unprecedented Sales Tax revenue decline, collections may have been slightly buoyed by direct federal stimulus payments to individuals. These payments peaked in April and were largely complete by the end of May, suggesting that the stimulus effect will fade in subsequent months without additional federal assistance.
The Corporation Business Tax (CBT), the second largest General Fund revenue, generated $95.0 million, 31.0 percent below last May. Year-to-date, CBT collections of $2.821 billion are 13.2 percent below last year. May was the sixth consecutive month of d