New Jersey revenue collections were up for the month of August, the state’s Department of Treasury reported.
August revenue collections for the major taxes totaled $2.446 billion—up $488.7 million or 25% from last August. Treasury said that year-to-date, total collections of $2.8 billion were up $659.8 million, or 30.8% above the same two initial months last year. The revenue gains continue a rebound trend, the department said in a press release.
Gross income tax collections in August totaled $1.021 billion, an increase of $212.8 million, or 26.3% above last August. Year-to-date collections of gross income tax, which go to the Property Tax Relief Fund, rose by $425 million, or 57.8%, according to Treasury.
“Growth is spurred by recovering employee withholding collections compared to weaker levels during the pandemic last summer. Refund levels are also returning to normal after delayed taxpayer filing deadlines last year,” Treasury said in their press statement.
Consumer Spending Rebound Continues
The largest General Fund revenue source is the Sales and Use Tax. New Jersey brought in $970.3 million in Sales and Use Tax in August, an increase of $79.5 million, or 8.9% above last August.
“The consumer spending rebound continues, as August Sales Tax collections are 12% above pre-pandemic levels in August 2019. Due to the one-month lag in Sales Tax collections, August revenue reflects consumer activity in July,” Treasury reported.
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Collections Growth Expected ‘To Moderate’
The second largest General Fund revenue source is the Corporation Business Tax. New Jersey brought in $52.6 million from the Corporation Business Tax in August. Treasury said this amount was well above the $28 million decline seen last August—a result of last year’s corporate filing delay when refund payouts exceeded taxpayer payments.
Year-to-date through August, Treasury said that Corporation Business Tax collections of $208.2 million are up $65.7 million, or 46% above the same period last year.
Treasury tempered the good news in its press release, warning that “while overall collections are up soundly compared to last year, the first two months of the fiscal year are relatively small. The first meaningful month will be September because of the significant quarterly estimated payments that are due under the GIT and the CBT.”
The department said it anticipated fiscal year 2022 collections growth “to moderate into the winter months as the impact of the (coronavirus) pandemic eases and the substantial federal income stimulus fades.”
Casinos Post Gains
New Jersey’s casinos are showing signs of recovery based on news from New Jersey’s Division of Gaming Enforcement. Total gaming revenue for August was $427.7 million, compared to $326.3 million in August 2020—a 31% increase, according to numbers that the division released Sept. 16.
Casino win for August was $262.4 million, compared to $199.1 million in August 2020. Internet Gaming Win was $113.2 million in August compared to $87.8 million in the prior period, an increase of 29%. Sports Wagering Gross Revenue was $52.0 million for the month.
Year-to-date, the industry’s total gaming revenue was $2.99 billion, compared to $1.62 billion, reflecting an increase of 84.8%.
Due to the COVID-19 pandemic, Atlantic City casinos closed on March 16, 2020, and started reopening on July 2, 2020, but with operating restrictions.
For the month of August 2021, total gaming taxes were $42.1 million. This figure reflects 8% of taxable casino gross revenue, 15% of Internet gaming gross revenue, 8.5% tax on casino and racetrack sports wagering gross revenue and 13% tax on casino and racetrack sports wagering Internet gross revenue.
Additionally, the casino industry incurred $6.4 million in 1.25% Additional Tax on sports wagering gross revenue and Investment Alternative Tax Obligation. The Division of Gaming Enforcement said this figure reflects 1.25% of casino gross revenue and 2.5% of Internet gaming gross revenue.
For August 2021, the Racetrack Economic Development Tax of 1.25% of racetrack sports wagering gross revenue was $375,023.