- Massachusetts Department of Revenue
Wednesday, May 5, 2010
Robert R. Bliss
Due to May 11 filing extension deadline, monthly collections are $31 million less than a year ago
Revenue Commissioner Navjeet K. Bal today announced that preliminary revenue collections for April 2010 totaled $1.748 billion, down $31 million or 1.8 percent from the same period a year ago. Comparisons with last year are not meaningful because the filing deadline for tax returns this year was extended from April 15th to May 11th due to the recent flooding in Massachusetts.
Total tax collections were $252 million below the monthly benchmark based on the FY10 revenue estimate of $18.460 billion. The decline was largely due to the extension of the filing deadline to May 11, with total income tax collections of $1.131 billion coming in $183 million less than a year ago.
"It is no surprise that April income tax payments with returns and refunds, and perhaps income tax estimated payments as well, were artificially reduced by the extension of the filing deadline from April 15 to May 11 due to the federal disaster declaration for seven Massachusetts counties hit by flooding," Bal said.
"However, it is also well worth noting that income tax withholding, sales and corporate taxes, which reflect current economic activity, were all strong in April, each one well over benchmark," she said. "In those numbers we are clearly seeing signs of economic recovery."
April withholding of $723 million was $58 million more than a year ago and $61 million above benchmark, but income received with the filing of tax returns, extensions, and payment of tax bills was down $319 million and was $469 million below the April benchmark. Overall, income tax collections were $395 million below benchmark for the month.
Navjeet K. Bal 100 Cambridge Street Commissioner P.O. Box 9494 Boston, MA 02114 (617) 626-2201 - F: (617) 626-2299
Sales tax collections of $414 million were up $105 million, or 33.9 percent, $38 million above benchmark and, factoring out the elimination of the sales tax exemption for alcoholic beverages, were up 3.3 percent on a baseline basis.
Regular sales tax collections in April were up $74 million or 33.1 percent and were $26 million above benchmark, exceeding the collections a year ago by 2.0 percent on a baseline basis. This is the best regular sales tax collection performance since August 2008. Meals tax collections were up $14 million but down 2.6 percent baseline over a year ago, while motor vehicle sales tax was up $17 million or 18.9 percent baseline from a year ago.
Corporate/business tax collections of $74 million were up $47 million or 174.3 percent from a year ago and were $95 million above benchmark.
Year to date, income tax collections of $8.104 billion are $392 million below benchmark; sales and use tax collections are $69 million above benchmark; and corporate and business tax collections are $56 million above benchmark. Total tax collections are now $261 million below benchmark.
"The monthly revenue report for May - which will include income tax payments remitted with tax returns as well as income tax refunds - should be a much better indicator of how the Commonwealth is going to finish out FY10," Bal concluded.
FY2010 Year-to-Date Revenue through April 30, 2010
April 2010 Tax Collection Summary (preliminary as of May 5, 2010)