May Revenue Collections Total $1.515 Billion
(Boston, MA)-Revenue Commissioner Amy Pitter today announced that preliminary revenue collections for May totaled $1.515 billion, $102 million or 6.3 percent less than the state took in last May. Slightly better than expected sales and use tax collections, income payments with bills and returns and corporate and business collections offset a shortfall in withholding to end the month $29 million above the monthly benchmark based on the revised FY13 revenue estimate of $21.496 billion.
With one month remaining in the fiscal year, the total year-to-date collection of $19.659 billion is $838 million or 4.5 percent above that of a year ago and $539 million above the year-to-date benchmark.
May is, historically, a small tax collection month because the filing season is winding down and there are no quarterly payments due for most corporate and business taxpayers or individuals. Most of the decline in revenues over last May can be attributed to settlement-related corporate and business revenues. Last year DOR collected $200 million in these one-time payments.
“Despite the decline in one-time revenues which we anticipated in May, we remain above benchmark for the fiscal year largely because of investor reaction to federal fiscal policies implemented in January,” said Commissioner Pitter. “This kind of behavior does not reflect normal economic activity that impacts future revenues.’
Corporate and business tax collections of $50 million were down $177 million or 77.8 percent from a year ago and were $12 million above benchmark. Year-to-date collections total $1.771 billion, down $115 million or 6.1 percent over the same period last year and $187 million above the year-to-date benchmark. As DOR has reported, one-time tax-related judgments and settlements account for more than half of the year-to-date corporate and business tax collections performance.
Sales tax collections for May totaled $437 million, up $23 million or 5.5 percent from the same period a year ago and $11 million above the May benchmark. Year-to-date collections totaled $4.710 billion, up $91 million or 2.0 percent from the same period last year, but $18 million below anticipated year-to-date collections.
Income tax payments with returns or tax bills for May totaled $162 million, up $30 million or 22.8 percent from the same period last year and $14 million above the month-to-date benchmark. Year-to-date income tax payments with returns and bills are $2.068 billion, $407 million or 24.5 percent more than last May and $220 million above the year-to-date benchmark.
Withholding tax collections of $767 million were $18 million or 2.4% above a year ago and $11 million below the monthly benchmark while year-to-date collections of $9,156 billion are $223 million or 2.5 percent above the same period last year and $19 million below the anticipated year-to-date benchmark.