BUSINESS REPORT

Plunging state revenues evidence of COVID-19’s impact on NJ economy

BY Rhonda Schaffler, Correspondent |

The State Treasury on Wednesday revealed that revenue collections plunged nearly 60% in April for an unprecedented decline of $3.5 billion. Part of the reason for the drop was the extension of the tax filing deadline, but given the severity of job losses in the state, it’s unclear whether that shortfall will be made up in July, according to the Treasury Department.

As revenues tumble, advocacy groups are calling on the state to generate revenue by raising taxes on New Jersey’s wealthiest residents.

Charitable groups have been hard hit by COVID-19 as donations fall off. Lawmakers are advancing a bill that would give residents a state tax write-off for donations made during this health crisis.