Comptroller Fiscal Year Memo Letter Head

April 1, 2014                       

Secretary Glen Shor
Executive Office of Administration and Finance
State House, Room 373
Boston, Massachusetts 02133

Secretary Richard A. Davey
Massachusetts Department of Transportation
10 Park Plaza, Room 3170
Boston, Massachusetts 02116

RE:      April 2014 Certification of MBTA Dedicated Sales Tax Revenues for the Fiscal Year Ending June 30, 2014

Dear Secretary Shor and Secretary Davey:

Pursuant to Massachusetts General Laws (MGL) Chapter 10, Section 35T, paragraph b, I certify, after consultation with the Commissioner of Revenue, that the projected dedicated sales tax revenue amount for fiscal year 2014 is projected to be $728,339,176.

The projected dedicated sales tax revenue amount is the amount of “monies received by the Commonwealth equal to one percent of the gross receipts of a sale as defined by the provisions of MGL chapter 64H and one percent of the sales price of a purchase as defined by the provisions of chapter 64I from that portion of the taxes imposed under the provisions of said chapters 64H and 64I as excises upon the sale and use at retail of tangible property or of services, and upon the storage, use or other consumption of  tangible property or of services, including interest thereon or penalties but not including any portion of such taxes imposed on the sale of meals as defined in paragraph (h) of section 6 of chapter 64H.”  The calculation of sales and meals taxes dedicated to the MBTA is  net of refunds, abatements, and amounts set aside under paragraph (b) of section 10 of chapter 152 of the acts of 1997 (the “Convention Center Portion”).

The projected dedicated sales tax amount was calculated as follows:

 

Fiscal Year 2014 

March 1, 2013
Certification

Fiscal Year 2014

November 15, 2013 Certification

Fiscal Year 2014

April 1, 2014 Certification

Change from

November 15, 2013 Certification

Projected Sales and Use Tax Collections, Exclusive of Meals Tax

$,4,397,468,989

$4,551,978,989

 $4,552,119,850

$140,861

 Percentage due to the MBTA(*)             

  ´16.0%(*)

 ´16.0%(*)

´16.0%(*)

´16.0%(*)

 

 

 

 

 

Projected Dedicated Sales Tax Revenue for FY 2014

$703,595,038

$728,316,638

$728,339,176

$22,538

 

 

 

 

 

FY 2014 Base Revenue as Certified on March 1, 2013

$799,295,175

$799,295,175

$799,295,175

$0

(*) 1 cent of 6.25 cents per dollar sales tax rate = 16.0%

Any shortfall in the fiscal year 2014 dedicated sales tax revenue from the fiscal year 2014 base revenue amount certified on March 1, 2013 will be made up by quarterly transfers from the General Fund, pursuant to Chapter 10, Section 35T(b) and the Memorandum of Understanding between the MBTA, the Treasurer’s Office, the Executive Office of Administration and Finance, the Comptroller’s Office and DOR.  Should you have any questions about the calculation of the dedicated sales tax revenue, please feel free to call me or Howard Merkowitz, Deputy Comptroller.

Sincerely yours,

Martin J. Benison
Comptroller

Cc:          
Senator Stephen Brewer, Chairman Senate Ways and Means
Representative Brian Dempsey, Chairman House Ways and Means
Steven Grossman, Treasurer and Receiver – General, TRE
Amy Pitter, Commissioner of Revenue
Scott Jordan, Undersecretary, ANF
Douglas Howgate, Senate Ways and Means Budget Director                
Ashley Groffenberger, House Ways and Means Budget Director