New Jersey lowered its gross-income tax revenue forecasts by $2.3 billion.
(Bloomberg) — New Jersey lowered its gross-income tax revenue forecasts by $2.3 billion.
In testimony before the Assembly budget committee in Trenton on Wednesday, Treasurer Elizabeth Muoio said that New Jersey expects $1.1 billion less for 2023 and $1.2 billion less for the fiscal year that starts on July 1.
April collections declined by 27%, more than double the original forecast, following last year’s record receipts. Muoio said “certain taxpayers realized income losses far exceeding expectations.”
New Jersey isn’t alone. New York, Illinois and California have also lowered their revenue projections as tax collections falter and federal stimulus runs out. Earlier this week, California’s non partisan budget adviser said that tax revenue could drop by $11 billion more than Governor Gavin Newsom projected in the event of an economic downturn, exacerbating deficit woes.
Still, New Jersey is “well prepared to handle this April Surprise,” she told lawmakers.
“We remain at record-high revenue levels, and the state’s surplus of $7.9 billion equals 15% of appropriations,” Muoio said.
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New Jersey’s gross income-tax receipts are dedicated to relieving the highest property taxes among US states. Governor Phil Murphy this fiscal year provided $2 billion in checks to homeowners and renters, and he has set aside the same amount in his proposed $53.1 billion budget for 2024.
Jennifer Sciortino, a spokeswoman for Murphy, said the revenue loss will have no affect on Murphy’s plans for homeowner checks of as much as $1,500.
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