May Revenue Collections Total $1.624 Billion
(Boston, MA) Revenue Commissioner Amy Pitter today announced that preliminary revenue collections for May totaled $1.624 billion, $109 million or 7.2 percent more than last May. Income tax payments with returns and extensions were below the same month last year continuing the trend of weakness in that area, reported in April, due to acceleration of capital gains realization in 2012 in anticipation of federal tax changes. Better than expected corporate and business collections, withholding and sales and use tax collections and estate tax payments combined to offset the shortfall in income tax payments with returns and extensions to end the month $62 million above the monthly benchmark.
With one more month to go in the fiscal year, total year-to-date collections of $20.842 billion are $1.183 billion or 6 percent above that of a year ago and $183 million above the year-to-date revised benchmark.
“Despite the decline in income payments with bills and returns in May, the increase in withholding and sales and use tax collections through May reflects the continued moderate growth in the underlying economy that we had expected,” said Commissioner Pitter.
Income tax payments with returns or extensions totaled $100 million, down $62 million or 38.0% from the same time last year and $51 million below the monthly benchmark. Income tax withholding totaled $804 million for the month, 15 million ahead of benchmark.
With no quarterly payments due, May is generally not a significant month for corporate and business tax collections. Collections for the month totaled $62 million, up $12 million over last year and $18 million above the monthly benchmark, mostly attributable to one-time, judgment and settlement and related payments, a portion of which will be refunded in June.
Sales tax collections totaled $473 million for May, up $36 million or 8.2 percent from the same time last year and $11 million above benchmark for the month. Year-to-date sales and use tax collections total $5.009 billion, up $299 million or 6.3 percent from the same period last year but $5 million below what was anticipated.
Estate tax collections totaled $103 million this month, up $82 million from the same period last year largely attributable to a one-time estate tax payment of more than $80 million. The unemployment insurance surcharge, a non-DOR tax category, was weaker than the same time last year and $10 million below benchmark due to a timing-related shift of premiums into June.