(Boston, MA) - Revenue Commissioner Michael J. Heffernan today announced that preliminary revenue collections for April totaled $2.941 billion, $92 million or 3.0 percent less than the state took in last April.
“April revenues reflect lower returns on investments during 2015 resulting in below benchmark performance for payments with returns and increased refunds this month,” said Commissioner Heffernan. “Our state economy remains healthy and strong with withholding collections showing continued growth in wages.”
- April revenues were $92 million less than last April’s total.
- Revenue collections are $172 million below benchmark for the month.
- Year-to-date revenues now stand at $261 million below benchmark.
- Corporate & business taxes were $28 million below the monthly benchmark.
- Income tax collections were $141 million below the monthly benchmark.
- Withholding (a subcategory of income tax) was $75 million above the April benchmark.
- Sales and use tax collections were $24 million below the monthly benchmark.
April is a significant month due to collection of payments with tax returns and extensions, and first quarter estimated income tax payments. Revenues were $172 million below benchmark for the month largely due to lower than anticipated income collections with returns and bills and lower than anticipated estimated payments. Additionally, corporate
and sales tax collections were less than expected and income tax refunds were greater than expected, contributing to the revenue gap.
With two months remaining in the current fiscal year, year-to-date revenues total $20.793 billion, $383 million or 1.9 percent more than last year at this time. Excluding the $26.9 million in one-time tax settlements received year-to-date, tax collections totaled $20.766 billion, $540 million or 2.7 percent above last year at this time but $261 million below the year-to-date benchmark.
- Income tax collections were $2.195 billion, $103 million or 4.5 percent below last April and $141 million below the monthly benchmark.
- Withholding collections, a subcategory of income tax collections, totaled $925 million, up $53 million or 6.0 percent from the same period last year and $75 million above benchmark for the month, some of this could be due to timing issues.
- Income tax payments with returns or bills totaled $1.361 billion, $109 million or 7.4 percent less than last April and $127 million below the monthly benchmark.
- Income tax estimated payments totaled $253 million, $26 million or 9.3 percent less than last April and $20 million below the April benchmark.
- Income tax cash refunds totaled $343 million, $21 million or 6.4 percent more than last April and $70 million above the monthly benchmark.
- Corporate and business tax collections totaled $61 million, $24 million or 28.2 percent less than last April and $28 million below the monthly benchmark, due to one-time refunds.
- Sales tax collections totaled $503 million for the month, $7 million or 1.4 percent more than last April, and $24 million below the April benchmark.
- Other tax collections totaled $182 million, $28 million or 18.4 percent more than last year and $21 million above benchmark for the month. *
*For the purpose of this revenue release and going forward in Fiscal Year 2016 (FY16), the “benchmark” refers to the new benchmark, revised and released in January 2016.
FY2016 Year-to-Date Tax Revenue Through April, 2016
April 2016 Tax Collection Summary (in $ millions) (Preliminary as of May 4, 2016)