October Revenue Collections Total $1.401 Billion
Revenue Commissioner Amy Pitter today announced that preliminary revenue collections for October 2012 totaled $1.401 billion, down $48 million or 3.3 percent below what the state took in last October. Due to weak performance in most revenue categories and higher than expected income and corporate tax refunds, October collections were $162 million below the monthly benchmark based on the FY13 revenue estimate of $22.011 billion.
Tax collections for the first four months of the fiscal year total $6.482 billion, $33 million or 0.5 percent less than a year ago and are $256 million below the year-to-date benchmark.
“October is a relatively small month because no quarterly estimated payments are due for individuals or corporations and it is traditionally the largest corporate and business refund month of the year,” Commissioner Pitter said, noting that Massachusetts, like many other states, is beginning to see a slowdown in the pace of recovery from the recession.
Income tax collections in October 2012 totaled $802 million, $29 million or 3.5 percent less than a year ago and were $94 million below benchmark. Income withholding was $24 million or 3.0 percent below a year ago and was $75 million below benchmark, with at least a third of the shortfall due to a timing related shift in withholding payments from October to September. Income cash refunds of $93 million were $22 million or 30.4 percent higher than a year ago and $20 million above benchmark.
Sales tax collections for October totaled $440 million, up $13 million or 3.0 percent from the same period a year ago and $20 million below benchmark.
Corporate/business tax collections of $8 million were $35 million lower than a year ago and were $47 million below benchmark. Most of the shortfall was due to the higher number of corporate and business refunds.