Determination of Whether Net State Tax Revenues Exceeded Allowable State Tax Revenues FY2023 – Exhibit IV

Calculation of Allowable State Tax Growth Factor the Fiscal Year Ended June 30, 2023

Calendar Year	Massachusetts Wages and Salaries* (in Thousands)	Wages and Salaries Yearly Growth Rate†
2019	$281,583,345
2020	$279,587,061	0.9929105
2021	$312,471,740	1.1176187
2022	$333,155,998	1.0661956
Sum of 2019–2022 Yearly Growth Rates		3.1767248
Allowable State Tax Growth Factor for Fiscal Year 2023 (3.1767248/3)		1.0589083

*         Source: United States Department of Commerce’s Bureau of Economic Analysis, Regional Income Division, Washington, D.C. (pursuant to Section 2 of Chapter 62F of the Massachusetts General Laws).

†         This yearly growth rate is calculated by dividing each calendar year’s wages and salaries by those of the previous calendar year. 

Note: Chapter 62F requires that, in calculating the allowable state tax growth factor for any fiscal year, the same total for Massachusetts’s wages and salaries for a calendar year used in prior calculations involving that calendar year shall be used in subsequent calculations involving that calendar year, notwithstanding periodic adjustments by the Bureau of Economic Analysis. The fiscal year 2023 allowable state tax growth rate increased .0023377 from the prior year’s rate of 1.0565706. 

Date published:	September 19, 2023