ROI-NJ: N.J. set income tax revenue record in April, treasurer tells Legislature

State Treasurer Elizabeth Muoio told legislators Tuesday during a budget hearing that New Jersey collected a record-setting $3.63 billion in Gross Income Tax receipts in April.

“These collections top the previous record of $3.14 billion that was recorded in April of 2008,” she said.

“Moreover, GIT funds, which are constitutionally dedicated to the Property Tax Relief Fund, are up 56.8 percent compared to last April. Withholding collections are also up 9.9 percent and estimated tax payments are up 10.4 percent. In total, year-to-date GIT collections of $13.075 billion are up 7.7 percent, or $930 million.”

This has resulted in revised revenue estimates for the current and upcoming fiscal years.

“While we correctly anticipated the taxpayer behavior that played out, we not only met our robust April tax collection targets, but we encountered somewhat of a surprise when Gross Income Tax collections set a new April record, slightly increasing our revenue forecast for FY2019,” she said. “This improved revenue outlook means we will be making a deposit into the state’s Surplus Revenue Fund for the first time in more than a decade. Based on the law and our revised revenue estimates for FY19, this long-absent deposit is projected to equal $317.1 million, helping to minimize any future disruption in services and benefits in the event of an economic downturn.”

The news has some calling for Gov. Phil Murphy to stand down on the proposed millionaire’s tax, which Muoio said is only supported further by the increased revenue.

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