Tax revenues rise 6 percent in New Jersey

Tax revenues in New Jersey are picking up.

Revenue collections for the 2013 fiscal year totaled $25.6 billion, a gain of more than 6 percent from the previous year.

Treasury Department chief economist Charles Steindel says income tax collections in June rose almost 4 percent.

“This is the sixth time in this fiscal year that we set a monthly record for the income tax which is pretty remarkable,” he said Thursday. “Now, for the fiscal year as a whole, we’re not going to set a new record. When all the books are closed it’s going to be the second or third best year we’ve ever had.”

Steindel says an increase in hiring and wages has contributed to the advance in tax revenues.

“People are earning more income and when people have more income they pay more tax. New Jersey, of course, is a very progressive tax system,” he said. “Tax revenue grows a lot more rapidly than income.”

He expects continued growth in the new fiscal year but cautions the pace might not be as rapid.