As Gov. Phil Murphy prepared for his budget address, the New Jersey Department of Treasury had good news for state residents.
The agency reported it had successfully retired $1 billion in state debt, which would save taxpayers about $590 million over the life of the bonds.
“This has been a monumental effort by our Office of Public Finance and others within the department, whose hard work resulted in substantial savings to New Jersey taxpayers,” said State Treasurer Elizabeth Muoio.
The department noted the Murphy Administration had allocated more than $8.8 billion toward the Debt Defeasance and Prevention Fund to improve New Jersey’s fiscal health.
Major Taxes up 4.1% in January
“Reducing our state’s debt and the burden it places on taxpayers has been a major focus of my administration,” said Murphy. “Reducing our debt load saves taxpayer money and raises our standing with the credit rating agencies, allowing us to invest in building the next New Jersey at a more affordable interest rate.”
The Department of Treasury reported that despite a dip in the Gross Income Tax (GIT), overall major taxes increased 4.1% month-over-month in February to $191.5 million. Fiscal year-to-date collections were up 3.4% to $776.8 million.
Breaking Down Collections
January collections for the GIT dropped 0.2% year-over-year to just under $2.4 billion. The agency attributed the decrease to low growth in employer withholding and declines in other GIT components.
The Sales and Use Tax (SUT) totaled approximately $1.4 billion during the month, representing a 3.7% increase year-over-year. The treasury pointed to a 6.3% increase in the NY-NJ-PA Consumer Price Index in December 2022, which was above the 3.7% SUT growth rate. The agency said this indicated real retail sales in New Jersey declined for the third time in the past four months.
The Corporation Business Tax (CBT) was up 1.6% to $4 million, while the Pass-Through Business Alternative Income Tax (PTBAIT) jumped 37.2% year-over-year to $114.2 million.
Gaming Revenue Up
The New Jersey Division of Gaming Enforcement announced that total gaming revenue was up 14.5% year-over-year in January to $436.9 million.
Casino win was up 15.3% during the period to $211.7 million, according to the division. Internet gaming also posted growth during the period, rising 10.9% compared to the prior year to $152.9 million.
Sports wager gross revenue posted a 20.2% increase in January, totaling $72.3 million.
This is a GOP wet dream but I’m sure they’ll register outrage.