Despite the ongoing COVID-19 pandemic, recent tax payments are on track with expectations set by the state Department of Treasury.
In its latest revenue report, the state said it collected $34.9 billion in major revenue sources, a decrease of less than 0.6% compared to last year, between July 2019 and July 2020.
To help deliver some relief to individual and corporate taxpayers amid the crisis, New Jersey granted taxpayers a three-month extension to pay and file their state taxes, moving the deadline from April 15 to July 15.
New Budget Plan
Gov. Phil Murphy will unveil a new budget proposal on Aug. 25 at Rutgers University. The new budget will run from Oct. 1 to June 30, 2021.
The governor previewed the address at a press briefing Aug. 24 that the budget will include revenue raisers, while hoping for Federal aid to help avoid cuts to needed services in the state.
New Jersey collected $3.36 billion in gross income taxes in July and $589.8 million in corporation business taxes. Both amounts surpass tax collections in July 2019, according to the Treasury.
But, the treasury said, collections are “still below” its $3.6 billion target for July. The lower-than-expected final and estimated payments “were partially offset by improved employer withholding receipts.”
However, New Jersey’s number one revenue generator—sales and use taxes—fell $36.6 million to $983.2 million, according to the report.
“While down for the fifth consecutive month, July’s Sales Tax decline was an improvement for the historically unprecedented declines seen from April through June,” the Treasury noted.
The same law that extended the tax collection deadlines lengthened New Jersey’s budget year in order to give officials more time to analyze the financial impact of the public health emergency.
The state’s move followed similar changes at the federal level that changed the deadline for federal tax returns to July.