Massachusetts Department of Revenue (DOR) Commissioner Geoffrey Snyder announced that preliminary revenue collections for September totaled $4.187 billion, $194 million or 4.9% more than the actual collections in September 2021, and $224 million or 5.7% more than benchmark.[1] September 2022 revenue collections were impacted by the elective pass-through entity (PTE) excise. After adjusting for PTE excise, September 2022 collections are $30 million or 0.7% below actual collections in September 2021, but $165 million or 4.3% more than benchmark.
FY2023 year-to-date collections totaled approximately $9.194 billion, which is $443 million or 5.1% more than collections in the same period of FY2022 and $224 million or 2.5% more than year-to-date benchmark. After adjusting for PTE excise, FY2023 year-to-date collections are $231 million or 2.6% more than collections in the same period of FY2022 and $169 million or 1.9% more than benchmark.
“September collections were above monthly benchmarks and above collections from the same period last year,” said Commissioner Snyder. “September revenue included increases in most major tax types relative to September 2021 collections, including increases in withholding, non-withholding income tax, and sales, and partially offset by a decrease in corporate and business tax. The increase in withholding is likely related to strong labor market conditions. The increase in sales tax reflects continued strength in retail sales”.
In general, September is a significant month for revenues because many individuals and corporations are required to make estimated payments. Historically, roughly 10% of annual revenue, on average, has been received during September.
Given the brief period covered in the report, September results should not be used as a predictor for the rest of the fiscal year.
[1] With the recent enactment of the FY2023 budget, monthly revenue benchmarks were developed for the September 2022 through June 2023 period only.
Details:
· Income tax collections for September totaled $2.195 billion, $131 million or 6.4% above benchmark, and $152 million or 7.4% more than September 2021.
· Withholding tax collections for September totaled $1.280 billion, $36 million or 2.9% above benchmark, and $90 million or 7.6% more than September 2021.
· Income tax estimated payments for September totaled $871 million, $107 million or 13.9% more than benchmark, and $65 million or 8.1% more than September 2021.
· Income tax returns and bills for September totaled $166 million, $46 million or 21.8% less than benchmark, but $78 million or 88.0% more than September 2021.
· Income tax cash refunds for September totaled $122 million in outflows, $35 million or 22.3% below benchmark, but $81 million or 196.4% more than September 2021.
· Sales and use tax collections for September totaled $766 million, $81 million or 11.8% above benchmark, and $70 million or 10.0% more than September 2021.
· Meals tax collections, a sub-set of sales and use tax, for September totaled $131 million, $18 million or 16.4% above benchmark, and $11 million or 9.6% more than September 2021.
· Corporate and business tax collections for September totaled $973 million, $28 million or 3.0% above benchmark, but $30 million or 3.0% less than September 2021.
· “All other” tax collections for September totaled $254 million, $16 million or 6.1% below benchmark, but $2 million or 0.9% more than September 2021.