Hurricane Irene Relief Measures Cut September Revenue Collections
TRENTON — New Jersey’s September revenue collections fell 6.9 percent compared to original budget estimates as the tax extension granted after Hurricane Irene delayed tax payments to the State Treasury from September to October. Total collections are 3.6 percent under budget amounts for the first three months of the fiscal year.
“Taxpayers affected by the storm and the flooding that followed had the opportunity to delay September tax payments until October,” Treasurer Andrew Sidamon-Eristoff said. “We believe thisextension, while clearly necessary and appropriate to aid businesses and individuals impacted by the storm, pushed millions of dollars of revenue collections into October.
”September income tax collections were 10.6 percent below budget forecasts, sales taxes were 4.6 percent under forecasts and corporation business tax collections were 7.2 percent under expectations.
Year-to-date collections of the income tax were 2.8 percent below budget, sales taxes were off by 3 percent and the corporation business tax was down 7.8 percent.
“Because September was so greatly impacted by storms and their aftermath, we won’t know until October collections are counted whether revenue is continuing to track budget estimates,” said Dr.Charles Steindel, Chief Economist for the New Jersey Treasury. “Those figures will also give us a clearer indication of the overall impact of Hurricane Irene has had on New Jersey’s economy.
”September was the last month of the first quarter of fiscal 2012. Collections are up 2.6 percent from thefirst quarter of the last fiscal year. Collections for just September are down 3.2 percent compared toSeptember 2010.