New Jersey's tax collections in the first three months of its budget year met projections, the state Treasury Department announced Friday, as better-than-expected income tax revenue offset shortfalls for many other taxes.
Income taxes topped expectations between July and September by 4.5%, or more than $83 million. Corporate taxes were nearly on target, short by 0.2%. But sales taxes (-2.6%), lottery revenue (-2.9%), gas taxes (-3.7%), inheritance taxes (-10.9) and real estate transfer taxes (-22.6%) all lagged their forecasts, putting overall state tax collections at 0.2%, or $10.7 million, in the black.
A year ago at the same point of the budget year, revenues were $190 million behind forecast.
In the month of September, income tax revenue was 9.3%, or $83.5 million, ahead of expectations. Corporate taxes were 22.7%, or $61 million, ahead of targets, erasing a deficit of roughly the same size from August.
But sales taxes, the last of the major revenue sources, were nearly 5% off their expected pace in September, leaving the tax -- an important indicator about the health of the economy -- short by more than $33 million for the month and nearly $53 million for the quarter. Sales tax revenue for the quarter was just 0.2% above the same period in 2009, while the budget projects year-end growth of 3.9%.
"While encouraging, one month of rising revenue doesn't equal a trend," said state Treasurer Andrew Sidamon-Eristoff, who expressed concern about "the lingering weakness" in sales tax payments.
