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Press Release Auditor Bump Determines Net State Tax Revenue Exceeds Allowable State Tax Revenue

Net state tax revenues for the fiscal year ended June 30, 2022 are above the allowable state tax revenues by the amount of $2,941,499,731.
For immediate release:
9/15/2022
  • Office of the State Auditor

Media Contact for Auditor Bump Determines Net State Tax Revenue Exceeds Allowable State Tax Revenue

Lauren Feltch Donoghue, Director of Communications

BostonToday State Auditor Suzanne Bump announced that her office has completed its review of the report of net tax revenues and allowable state tax revenues for the fiscal year ended June 30, 2022, as prepared by the Commissioner of Revenue. She has determined that the net state tax revenues of $41,812,654,358 for the fiscal year ended June 30, 2022 are above the allowable state tax revenues of $38,871,154,627 (as defined in Chapter 62F of the General Laws) by the amount of $2,941,499,731.

“Our review requires us to do more than check DOR’s math,” said Auditor Bump. “As has been done each year of my tenure, we apply generally accepted government auditing standards in our review to verify the accuracy and completeness of the report provided by DOR. This provides us with reasonable assurance required by those standards that DOR’s figures are correct. Since FY21 revenues had been $36,789,926,416, the operation of Chapter 62F caps allowable state tax revenues for FY22 at $38,871,154,627. The collection of $41,812,654,358 in FY22 exceeds that cap by $2,941,499,731. According to Chapter 62F, a return of this amount in the form of a credit must be effectuated by the commissioner of DOR.”

Auditor Bump also notes that, as DOR has reported, FY22 revenue collections reflect unprecedented capital gains tax revenue, the temporary impact of pass-through entity (PTE) excise payments, current labor market conditions, and strength in retail sales.  “I would underscore for the Legislature and the public one key element in the FY22 revenue increase,” said Auditor Bump. “The change in the taxation of so-called pass through business entities which just took effect last year generated $2.25 billion in revenue, much of which has yet to be claimed in the form of personal income tax credits and deductions by the business owners.”

For more information about the elective PTE excise, please see https://www.mass.gov/info-details/elective-pass-through-entity-excise

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Media Contact for Auditor Bump Determines Net State Tax Revenue Exceeds Allowable State Tax Revenue

Office of the State Auditor 

The Office of State Auditor Suzanne M. Bump (OSA) conducts audits, investigations, and studies to promote accountability and transparency, improve performance, and make government work better.
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