Press Release

Press Release February Revenue Collections Total $1.979 Billion

Monthly collections up $163 million or 9.0% vs. February 2022 actual; $49 million above benchmark
For immediate release:
3/03/2023
  • Massachusetts Department of Revenue

Media Contact for February Revenue Collections Total $1.979 Billion

Nathalie Dailida

Boston, MA — Massachusetts Department of Revenue (DOR) Commissioner Geoffrey Snyder today announced that preliminary revenue collections for February totaled $1.979 billion, $163 million or 9.0% more than actual collections in February 2022, and $49 million or 2.5% above benchmark.[1] February 2022 revenue collections were impacted by the elective pass-through entity (PTE) excise. After adjusting for PTE excise, February 2023 collections are $171 million or 9.5% above actual collections in February 2022, and $1 million or 0.05% less than benchmark.

FY2023 year-to-date collections totaled approximately $23.651 billion, which is $37 million or 0.2% less than collections in the same period of FY2022, but $999 million or 4.4% above the year-to-date benchmark. After adjusting for PTE excise, FY2023 year-to-date collections are $1.058 billion or 4.7% more than collections in the same period of FY2022 and $572 million or 2.5% more than the year-to-date benchmark.

“February collections increased in withholding, sales and use tax, and ‘all other tax’ in comparison to February 2022,” Commissioner Snyder said. “These increases were partially offset by decreases in non-withholding income tax. The increase in withholding is likely related to labor market conditions and the increase in sales and use tax reflects, in part, continued strength in retail sales. The increase in ‘all other tax’ is primarily attributable to estate tax, a tax category that tends to fluctuate.”

February has historically been the lowest month for revenue, contributing 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 tax filing season begins.

Details:

  • Income tax collections for February totaled $972 million, $47 million or 4.6% below benchmark, but $55 million or 6.0% more than February 2022.
  • Withholding tax collections for February totaled $1.309 billion, roughly equal to the benchmark, and $81 million or 6.6% more than February 2022.
  • Income tax estimated payments for February totaled $26 million, $3 million or 14.0% more than benchmark, but $14 million or 35.0% less than February 2022.
  • Income tax returns and bills for February totaled $71 million, $10 million or 16.1% more than benchmark, and $16 million or 29.4% more than February 2022.
  • Income tax cash refunds for February totaled $433 million in outflows, $60 million or 16.2% above benchmark, $28 million or 6.9% more than February 2022.
  • Sales and use tax collections for February totaled $674 million, $71 million or 11.7% above benchmark, and $70 million or 11.6% more than February 2022.
  • Meals tax, a sub-set of sales and use tax, collections for February totaled $99 million, $24 million or 31.9% above benchmark, and $22 million or 29.0% more than February 2022.
  • Corporate and business tax collections for February totaled $48 million, $16 million or 48.1% above benchmark, $2 million or 4.1% more than February 2022.
  • “All other tax” collections for February totaled $284 million, $10 million or 3.5% above benchmark, and $36 million or 14.6% more than February 2022.

February 2023 Tax Collections Summary (in $ millions) Preliminary as of March 3, 2023

Footnotes

[1]

The February and fiscal-year-to-date revenue benchmarks are based on the FY2023 budget signed on July 28, 2022, which assumed FY2023 revenue collections of $39.618 billion. Updated benchmarks based on the revised FY2023 revenue estimate of $39.768 billion for the months of March 2023 through June 2023 are now available on DOR’s website at https://www.mass.gov/lists/year-to-date-and-monthly-tax-collection-benchmark-ranges#fy-2023-.

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Media Contact for February Revenue Collections Total $1.979 Billion

Massachusetts Department of Revenue  

DOR manages state taxes and child support. We also help cities and towns manage their finances, and administer the Underground Storage Tank Program. Similarly, our mission includes rulings and regulations, tax policy analysis, communications, and legislative affairs.

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