New Jersey’s revenue collections from July through November are $358 million above budgeted estimates due to stronger-than-expected personal and corporate tax receipts. The state collected $9.81 billion of tax receipts during the first five months of fiscal 2011, which began July 1 — 3.8%, or $358 million, more than budgeted projections.
While gross income and business tax revenue respectively came in 12.7% and 14.3% above expectations, sales tax revenue underperformed. The state received $3.14 billion of sales tax revenue from July through November — $44.5 million, or 1.4%, less than what officials had budgeted for. Lottery revenues, motor vehicle fuel taxes and fees are also down.
“I’m concerned that sales taxes are down at the same time that income taxes are up,” Treasurer Andrew Eristoff said. “This may signal that income taxes aren’t rising solely because of an improved economy. Instead, a substantial portion of the rise in income tax collections may be attributable to tax strategies employed by high-income earners.”