For Immediate Release - December 04, 2013

November Revenue Collections Total $1.572 Billion

Revenue collections meet final threshold to lower income tax rate

(Boston, MA)-Revenue Commissioner Amy Pitter today announced that preliminary revenue collections for November totaled $1.572 billion, $151 million or 10.6 percent more than the state took in last November. Strong performance in withholding collections and higher gains in corporate and business tax payments driven by one-time tax settlements and judgments offset lower than expected estate tax collections to end the month $86 million above the monthly benchmark based on the FY2014 revenue estimate of $22.797 billion. 

In addition, the Department of Revenue certified that revenue growth has met the final threshold needed to lower the personal income tax rate from 5.25 percent to 5.20 percent beginning January 1, 2014. As a result, revenue collections for the remainder of the fiscal year will drop by an estimated $65 million. 

Revenue collections for the first five months of the fiscal year totaled $8.669 billion, $766 million or 9.7 percent more than at this time last year and $359 million above the year-to-date benchmark. One-time tax settlements and judgments exceeding $10 million accounted for $159 million of the year-to-date surplus which must in general be deposited in the Commonwealth’s stabilization fund. 

“Above-benchmark performance in November was driven by strong withholding collections. We will be examining December withholding collections to determine if this trend is likely to be sustainable or is instead at least partly due to timing dynamics,” said Commissioner Pitter.

Total income tax collections for November were $934 million, $98 million or 11.8 percent over last November and $74 million above the monthly benchmark. Year-to-date income was $4.827 billion, $367 million or 8.2 percent over this time last year and $164 million over the year-to-date benchmark.

November withholding collections totaled $905 million, $97 million or 11.9 percent more than last November and $64 million above the monthly benchmark. So far this fiscal year, withholding collections are $4.143 billion, $253 million or 6.5 percent over last November and $70 million over the year-to-date benchmark.

Estimated income tax payments brought in $18 million for the month, $3 million or 18.5 percent more than last November and $2 million over the monthly benchmark. Year-to-date estimated income tax collections totaled $584 million, $62 million or 11.9 percent over last year at this time and $44 million over the year-to-date benchmark.

Income tax payments with returns or bills brought in $41 million for the month, $3 million or 6.3 percent less than last November and $6 million above the November benchmark. Year-to-date income tax payments with returns or bills totaled $308 million, $84 million or 37.4 percent over last year at this time and $83 million over the year-to-date benchmark.

Corporate and business tax collections for November were $26 million, $17 million or 191.8 percent more than last November and $17 million over the monthly benchmark. Year-to-date corporate and business tax collections totaled $663 million, $149 million or 28.9 percent more than the same period last year and $127 million above the year-to-date benchmark.

Sales and use tax collections for November totaled $438 million, up $26 million or 6.3 percent from last November and $5 million above the monthly benchmark. Collections through the first five months of the fiscal year totaled $2.302 billion, $135 million or 6.2 percent over the same period last year and $28 million over the year-to-date benchmark.

FY2014 Year-to-Date Tax Revenue Through November 30, 2013 pdf format of    FY2014 Year-to-Date Tax Revenue Through 11/30/13

November 2013 Tax Collection Summary (in $ millions) (Preliminary as of December 4, 2013) pdf format of    November 2013 Tax Collection Summary