NJ Projected To Lose $1.2B In Tax Revenue, Treasurer Says

NEW JERSEY — The state expects to collect $1.2 billion less in major tax revenue than what was forecast for the next fiscal year according to Treasurer Elizabeth Maher Muoio.

Revenue collections are down 14.3. percent from historic highs last April, she said, and told legislators Wednesday that the decline in revenues "are necessitating the need to adjust our revenue forecasts downward.”

However, Muoio said the state faces "no crisis" and has planned well for the "momentary revenue weakness," she told the Assembly Budget Committee. State legislators are reviewing Gov. Phil Murphy's $53.1 billion budget proposal this week.

The treasurer's office said collections for gross income tax fell about 27.4 percent, or $1.411 billion, from April last year.

"Preliminary data analysis for Tax Year 2022 indicates that a significant decline in net capital gains is the main driver behind the lower final payments," said Muoio's office.

Year-to-date fiscal collections are down $108.3 million, or 20.9 percent from last year according to the treasurer's office.

Many of the state's other revenue sources besides income tax are performing at or above expectations, Muoio's report shows.