TRENTON – The Office of Legislative Services states that the gross income tax collections in April are strong, as the Treasury reported on Thursday, but OLS cautioned Friday that the growth rate is likely to decline over the remainder of FY 2013.
OLS states that it believes this will be due to the fact that “future revenue flow is primarily from withholding collections, which are growing at a more modest rate.”
On Monday, both OLS and Treasury will provide revenue updates before the Senate Budget Committee.
“In addition, the OLS anticipates net collections to be depressed by higher refund payments as the delay in processing, noted in prior months of the OLS Snapshot, is resolved.
“Lastly, the OLS and the Executive also expect the GIT to receive a smaller accounting adjustment from the CBT (relating to certain partnership withholding provisions) than was the case in FY 2012.”
CBT is the Corporation Business Tax.
OLS also reported in its review of April’s figures that “nine of the 14 major revenues trail the Executive’s revised year-end growth targets, while five revenues, including the gross income tax, are growing faster than their year-end growth targets.”
“In total, the major tax revenues for the first ten months of FY 2013 are running 6.8% ahead of the same period last year, fueled by the strong April performance of the income tax,” OLS reported.