Treasury: Many Taxpayers Delay Payment in April after Extension of Filing Deadline
TRENTON — The Department of the Treasury reported that April revenue collections began what will effectively be a two-month filing season, as many taxpayers elected to postpone the traditional filing of April tax returns due to the extension of the filing deadline to May 17.
April collections of the major taxes totaled $4.468 billion, up $2.123 billion, or 90.5 percent, over last April, which had been severely impacted by the widespread economic shutdown. Fiscal year-to-date, total revenue collections of $28.782 billion are up $4.039 billion, or 16.3 percent above the same ten-month period last year.
Substantial year-over-year revenue growth is expected in the coming months due to the impact the COVID-19 pandemic had on revenues last year. The comparison of revenues from April 2021 to April 2020 shows significant growth because the base was severely reduced last year by deferred taxpayer filings to July 15 and various economic restrictions that had been in place. When compared to a pre-pandemic base, April 2021 total revenues of $4.468 billion are well below April 2019 total revenues of $5.812 billion, down $1.344 billion.
April collections for the Gross Income Tax (GIT), which is dedicated to the Property Tax Relief Fund, totaled $1.752 billion, up $747.7 million, or 74.5 percent over last April. For the second consecutive year, many taxpayers postponed their annual payments. Year-to-date, GIT collections of $12.061 billion are up $938.8 million, or 8.4 percent. However, by comparison, pre-pandemic April 2019 reported $3.627 billion, more than double this year's collection.
The Sales and Use Tax, the largest General Fund revenue source, reported collections of $1.117 billion in April, an increase of $335.0 million, or 42.8 percent. Due to the one-month lag in the reporting of Sales Tax collections, April revenues reflect March consumer activity. Last year, pandemic-related business restrictions began in the middle of March. Additionally, federal stimulus payments this year have helped boost national retail sales and State Sales Tax collections. Year-to-date, Sales and Use Tax receipts of $8.209 billion are up $678.6 million, or 9.0 percent.
The Corporation Business Tax (CBT), which is the second largest General Fund revenue source, reported $1.036 billion in April, up $660.4 million, or 176.0 percent above the same month last year. Year-to-date through April, CBT collections of $3.463 billion are up $737.3 million, or 27.1 percent.
Please see the attached chart for monthly and yearly comparisons between April 2021 and April 2020 . Also attached is last year's table, which displays the pre-pandemic levels reported in April 2019.
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