Major state revenue collections in New Jersey declined slightly in February, with the Department of Treasury attributing the decrease to taxpayers filing for their 2025 tax year refunds earlier than usual, according to a March 17 statement.
The drop in revenue is significant as it reflects both the timing of tax refund issuances and broader trends affecting state finances. The Department of Treasury reported that total major tax collections for February reached $3.091 billion, which is $89.4 million or 2.8% lower than the same month last year. February is typically a minor month for collections, but this year saw notable declines in Gross Income Tax and Corporation Business Tax revenues.
According to Treasury officials, fiscal year-to-date major revenues from July 2025 through February 2026 totaled $27.991 billion, marking an increase of $879.5 million or 3.2% compared with the previous year’s period. However, income tax collections dedicated to the Property Tax Relief Fund were down by $201 million or 13.8% compared to last year due to early issuance of refunds at the end of February instead of early March.
Sales and Use Tax collections rose by $21.1 million or 2.2%, totaling $974.9 million for February, while fiscal year-to-date figures are up by $234.8 million or 2.9%. The Corporation Business Tax posted negative collections for the month at minus $22.6 million—a decrease of $43.6 million or over twofold below last year’s figure—mainly because refunds exceeded payments during this low-collection period.
Christopher Emigholz, Chief Government Affairs Officer at the New Jersey Business and Industry Association (NJBIA), said that lower Corporation Business Tax revenues and higher refunds influenced Governor Mikie Sherrill’s proposal to limit use of Net Operating Loss deductions for three years: “NJBIA is concerned about the message this sends to corporate taxpayers who have taken the gamble to invest in New Jersey and now have had the rug pulled out from under them.”
Other taxes showed increases: Insurance Premiums Tax collections were up nearly 20% over last year at $306 million for February; Petroleum Products Gross Receipts Tax also rose by more than five percent following a rate increase effective January 1, which began impacting reported revenues due to a one-month lag.
The NJBIA serves as the nation’s largest statewide employer association representing private-sector employers throughout New Jersey and across various sectors according to its official website. The association advances competitive excellence and financial success among its members while providing essential information, advocacy services, cost-saving benefits, and facilitating partnerships between businesses, government entities, and academic institutions according to its official website. Michele Siekerka serves as president and chief executive officer according to its official website.
Looking ahead, Treasury expects moderate growth in Fiscal Year 2026 revenue collections based on updated forecasts included in the Governor’s Budget Message for Fiscal Year 2027.
