Press Release  February Revenue Collections Total $2.007 Billion

(Boston, MA) — Massachusetts Department of Revenue (DOR) Commissioner Geoffrey Snyder today announced that preliminary revenue collections for February totaled $2.007 billion, $27 million or 1.3% more than actual collections in February 2023, but $11 million or 0.6% below benchmark.¹

FY2024 year-to-date collections totaled approximately $23.467 billion, which is $186 million or 0.8% less than collections in the same period of FY2023, and $275 million or 1.2% less than the year-to-date benchmark.

“February collections increased in income tax withholding and corporate and business tax in comparison to February 2023,” said Commissioner Snyder. “These increases were partially offset by decreases in non-withheld income tax, and ‘all other’ tax. The increase in withholding was due, in part, to payments related to mergers and acquisition activities. The increase in corporate and business tax was due to an increase in corporate estimated and return payments. The decrease in non-withheld income tax was driven by an unfavorable increase in income tax refunds. The decrease in ‘all other’ tax is mostly attributable to a decrease in estate tax, a category that tends to fluctuate, but was partially offset by an increase in division of insurance tax.”

February has historically been the lowest month for revenue, contributing, on average, less than 6% of annual collections. Neither individual nor business taxpayers are required to make estimated payments during the month. February is also the month in which refunds reach substantial levels as the income tax filing season begins.

Details:

• Income tax collections for February totaled $1.014 billion, $29 million or 2.8% below benchmark, but $40 million or 4.2% more than February 2023.
• Withholding tax collections for February totaled $1.518 billion, $126 million or 9.0% above benchmark, and $208 million or 15.9% more than February 2023.
• Income tax estimated payments for February totaled $82 million, $49 million or 146.7% above benchmark, and $57 million or 220.9% more than February 2023.
• Income tax returns and bills for February totaled $83 million, $2 million or 2.7% above benchmark, and $13 million or 19.3% more than February 2023.
• Income tax cash refunds for February totaled $669 million in outflows, $206 million or 44.7% above benchmark, and $238 million or 55.1% more than February 2023.
• Sales and use tax collections for February totaled $675 million, $24 million or 3.5% below benchmark, and virtually equal to February 2023.
• Corporate and business tax collections for February totaled $79 million, $29 million or 58.1% above benchmark, and $29 million or 58.3% more than February 2023.
• “All other” tax collections for February totaled $239 million, $14 million or 6.0% above benchmark, but $43 million or 15.2% less than February 2023.

February 2024 Tax Collections Summary (in $ millions) Preliminary as of March 05, 2024

Footnotes

1

On January 12, 2024, the Secretary of Administration and Finance announced a revised tax revenue estimate of $39.834 billion for FY2024, which includes $1 billion for the 4% income surtax and a $576.8 million reduction in revenue resulting from the Tax Relief Bill. The revised FY2024 revenue benchmark represents July 2023 through December 2023 actual collections and forecasted collections for the months of January 2024 through June 2024.

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