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Press Release FY18 Preliminary Revenues Total $27.796 Billion

June 2018 revenue collections total $3.159 billion, $257 million above monthly benchmark; FY2018 $1.135 billion or 4.3% above annual benchmark; 8.6% increase over FY17 actual
For immediate release:
7/24/2018
  • Massachusetts Department of Revenue

Media Contact for FY18 Preliminary Revenues Total $27.796 Billion

Nathalie Dailida

Boston — Massachusetts Department of Revenue (DOR) Commissioner Christopher C. Harding today announced that preliminary revenue collections for June totaled $3.159 billion, which is $461 million or 17.1% more than the actual collections in June 2017 and $257 million or 8.9% above the June benchmark.

For Fiscal Year 2018 that ended in June, revenue collections were $27.796 billion, $1.135 billion or 4.3% above benchmark*. This is an increase of $2.192 billion or 8.6% over the actual amount collected in Fiscal Year 2017.

“Fiscal Year 2018 revenues exceeded the benchmark mainly because of non-withheld income and corporate taxes,” said Commissioner Harding. “Non-withheld income tax was $688 million over benchmark, driven by quarterly estimated payments. Corporate tax was $298 million over benchmark. Other taxes, including higher estate tax collections, contributed another $89 million. Together, these three categories account for nearly 95% of the revenue over benchmark. Each of these categories is highly volatile on a year-to-year basis. Fiscal 2018 is highly unusual in that all three categories had positive growth in significant amounts.”

“Withholding grew by 6.4% over the prior year and sales and use taxes by 3.9%, reflecting solid growth in the state’s economy. Because the benchmark anticipated growth, these two categories exceeded benchmark in total by $60 million, a material amount but a modest 5% of the total $1.135 billion over benchmark.”

Additionally, in a letter to the State Comptroller today, DOR certified that the preliminary total capital gains tax revenue collected in FY18 was $1.683 billion, generating a total FY18 transfer of approximately $514 million to the Commonwealth Stabilization Fund, which will be distributed as follows under Section 5G of Chapter 29 of the General Laws:

  • 90% of the above transfer (~$463 million) shall remain in the Stabilization Fund
  • 5% of the above transfer (~$26 million) shall then be transferred from the Stabilization Fund into the State Retiree Benefits Trust Fund
  • 5% of the above transfer (~$26 million) shall then be transferred from the Stabilization Fund into the Commonwealth's Pension Liability Fund

Based on the Period 3 certification letter issued by DOR on June 28, 2018, the Comptroller has already transferred $322 million to the Commonwealth Stabilization Fund. Therefore, today’s certification letter requires an additional transfer of approximately $192 million to the Stabilization Fund.

  • June 2018 revenues of $3.159 billion were $461 million or 17.1% more than last June, and $257 million above benchmark. 
  • Income tax collections were $170 million or 11.9% ahead of last June, and $85 million above benchmark.
  • Withholding collections (a subcategory of income tax) were $99 million or 9.9% more than last June, $45 million above benchmark
  • Sales and use tax collections were $28 million or 4.9% ahead of last June, but $100 million below benchmark**. 
  • Corporate and business taxes were $208 million more than last June, and $237 million above benchmark.
  • Other taxes, which include motor fuels, cigarette, estate, and other categories, were $54 million or 24.7% ahead of last June, and $35 million above benchmark.
  • For Fiscal Year 2018, revenues of $27.796 billion were $2.192 billion or 8.6% ahead of the prior year figure, and were $1.135 billion or 4.3% above the full year benchmark.

June Revenue Collections

  • Income tax collections for June were $1.591 billion, $85 million or 5.6% above benchmark, and $170 million or 11.9% above June 2017. 
  • Withholding collections for June totaled $1.095 billion, $45 million or 4.3% above benchmark and $99 million or 9.9% more than June 2017. 
  • Income tax estimated payments totaled $541 million for June, $54 million or 11.0% more than benchmark and $70 million or 14.9% above June 2017. 
  • Income tax returns and bills totaled $56 million for June, $5 million or 7.6% less than benchmark, and $15 million or 20.9% below June 2017.
  • Income tax refunds in June totaled $100 million in outflows, $10 million more than benchmark, and $15 million less than June 2017.
  • Sales and use tax collections for June totaled $601 million, which is $100 million or 14.2% less than benchmark but $28 million or 4.9% more than June 2017**. 
  • Corporate and business tax collections for the month totaled $692 million, up $208 million from June 2017, and $237 million above benchmark.
  • Other tax collections for June totaled $274 million, which is $35 million or 14.4% more than benchmark and $54 million or 24.7% more than June 2017.

Fiscal Year 2018 Revenue Collections

  • Income tax collections of $16.240 billion were $767 million or 5.0% above benchmark, and $1.556 billion or 10.6% more than Fiscal Year 2017. 
  • Withholding collections totaled $12.732 billion, $79 million or 0.6% above benchmark and $763 million or 6.4% more than Fiscal Year 2017.
  • Income tax payments with returns and bills totaled $2.146 billion, $179 million or 9.1% above benchmark and $205 million or 10.5% more than Fiscal Year 2017.
  • Estimated payments of $3.141 billion were $711 million or 29.3% above benchmark and $765 million or 32.2% more than Fiscal Year 2017.
  • Sales and use tax collections of $6.454 billion were $19 million or 0.3% below benchmark** and $243 million or 3.9% greater than Fiscal Year 2017.
  • Breaking down sales and use tax collections for fiscal year 2018: Regular Sales were $4.433 billion, $13 million or 0.3% below benchmark**. Meals collections were $1.154 billion, $27 million or 2.3% below benchmark**. Motor vehicles collections were $866 million, $22 million or 2.6% above benchmark. 
  • Income tax refunds were $1.779 billion, $203 million or 12.9% above the benchmark (unfavorable), and $176 million or 11.0% more than Fiscal Year 2017.  
  • Corporate and business tax collections totaled $2.772 billion, $298 million or 12.0% above benchmark, and $275 million or 11.0% more than Fiscal Year 2017.  
  • Other taxes are $2.330 billion, $89 million or 4.0% above benchmark and $118 million or 5.3% more than Fiscal Year 2017.

* On January 12, 2018, Administration and Finance Secretary Michael J. Heffernan revised the Fiscal Year 2018 state tax revenue estimate upward by $157 million, from $26.504 billion to $26.661 billion, to reflect strong year-to-date performance in the category of income tax withholding. Please also see the footnote (**) below.

** Per Sections 94 and 95 of the Fiscal Year 2018 budget, the Fiscal Year 2018 benchmark figures include an anticipated $125 million in revenues from sales tax acceleration. The actual collection figures reflect only the Sales and Use and Room Tax revenue received during June.

June 2018 Tax Collection Summary (in $ millions) Preliminary as of July 24, 2018

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Media Contact for FY18 Preliminary Revenues Total $27.796 Billion

Massachusetts Department of Revenue  

The Massachusetts Department of Revenue manages state taxes and child support. We also help cities and towns manage their finances.

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