Press Release  FY21 Revenue Collections Total $34.137 Billion

Boston, MA — Massachusetts Department of Revenue (DOR) Commissioner Geoffrey Snyder today announced that preliminary June 2021 revenue collections total $3.687 billion as of August 3, 2021, which is $1.11 billion or 43.1% more than benchmark,¹ but $1.139 billion or 23.6% less than the actual collections in June 2020. However, June 2020 actual collections were impacted by the extension of the Fiscal Year 2020 personal income tax filing deadline from April 15, 2020, to July 15, 2020. In addition, personal income tax collections received after the close of Fiscal Year 2020 were recorded as June 2020 revenue.²

Revenue collections for Fiscal Year 2021 were $34.137 billion, $5.047 billion or 17.3% above benchmark and $4.528 billion or 15.3% over the actual amount collected in Fiscal Year 2020. Some year-end adjustments will be made to Fiscal Year 2021 revenue collections in August.³

“Fiscal Year 2021 revenue collections reflect the impact of the ongoing economic recovery, federal fiscal and monetary policies, and the financial markets’ performance”, said Commissioner Snyder.

Historically, June is a significant month for revenues, because both individual and business taxpayers make estimated payments during the month. In most years, the month of June has ranked second (behind only April) in the proportion of annual revenue received during the month.

In a letter to the State Comptroller today, DOR certified that the preliminary total capital gains tax revenue collected in Fiscal Year 2021 was $2,532.6 million, generating a total Fiscal Year 2021 transfer of approximately $1,220.2 million to the Stabilization Fund, the State Retiree Benefits Trust Fund, and the Pension Liability Fund as follows under Section 5G of Chapter 29 of the General Laws:

• 90% (~$1,098.1 million) into the Stabilization Fund;
• 5% (~$61.0 million) into the State Retiree Benefits Trust Fund; and
• 5% (~$61.0 million) into the Pension Liability Fund

Based on the Period 3 certification letter issued by DOR on June 22, 2021, the Comptroller has already transferred $946.5 million to the aforementioned funds. Therefore, today’s certification letter requires additional transfers of approximately $273.7 million.

Details:

Preliminary June Revenue Collections

• Income tax collections for June are $1.828 billion, $386 million or 26.7% above benchmark, but $1.8 billion or 49.6% less than June 2020. The decline from June 2020 was expected, as mentioned above.
• Withholding tax collections for June total $1.199 billion, $93 million or 8.4% above benchmark, and $105 million or 9.6% more than June 2020.
• Income tax estimated payments total $622 million for June, $288 million or 86.3% more than benchmark, and $25 million or 4.2% more than June 2020.
• Income tax returns and bills total $91 million for June, $46 million or 99.7% more than benchmark, but $2.136 billion or 95.9% less than June 2020.
• Income tax cash refunds in June total $84 million in outflows, $41 million or 94.6% more than benchmark, but $206 million or 70.9% less than June 2020.
• Sales and use tax collections for June total $785 million, $234 million or 42.4% above benchmark, and $201 million or 34.5% more than June 2020.
• Corporate and business tax collections for June total $794 million, $353 million or 80% above benchmark, and $344 million or 76.7% more than June 2020.
• Other tax collections for June total $280 million, $138 million or 96.5% above benchmark, and $114 million or 69% more than June 2020.

Fiscal Year 2021 Revenue Collections

• Income tax collections of $19.593 billion are $2.913 billion or 17.5% above benchmark, and $2.232 billion or 12.9% more than Fiscal Year 2020.
• Withholding collections total $14.719 billion, $688 million or 4.9% above benchmark, and $983 million or 7.2% more than Fiscal Year 2020. Favorable withholding collections are due in part to much improved labor market conditions and the impact of federal COVID-19 relief legislation.
• Estimated payments of $2.942 billion are $729 million or 33% above benchmark, and $592 million or 25.2% more than Fiscal Year 2020.
• Income tax payments with returns and bills total $3.659 billion, $1.347 billion or 58.3% above benchmark, and $609 million or 19.9% more than Fiscal Year 2020.
• Income tax refunds (outflows) are $1.727 billion, $149 million or 7.9% below benchmark, and $49 million or 2.7% less than Fiscal Year 2020.
• The favorable performance of non-withholding income tax collections, which are the total of income tax payments with returns and bills and income tax estimated payments, net of income tax refunds, in part reflects the financial markets’ performance.
• Sales and use tax collections of $7.834 billion are $660 million or 9.2% above benchmark, and $1.023 billion or 15.0% more than Fiscal Year 2020. Sales tax collections are driven by both on-line sales and brick and mortar sales, as well as the implementation of rules requiring advanced sales tax payments.
• Breaking down sales and use tax collections for Fiscal Year 2021:
  — Regular Sales collections are $5.832 billion, $341 million or 6.2% above benchmark, and $927 million or 18.9% more than Fiscal Year 2020.
  — Meals tax collections are $948 billion, $120 million or 14.6% above benchmark, and $130 million or 12% less than Fiscal Year 2020.
  — Motor vehicles sales tax collections are $1.054 million, $198 million or 23.2% above benchmark, and $226 million or 27.3% more than Fiscal Year 2020.
• Corporate and business tax collections total $4.116 billion, $892 million or 27.7% above benchmark, and $1.192 billion or 40.8% more than Fiscal Year 2020. Favorable corporate and business tax collections reflect the impact of the economic recovery and federal fiscal and monetary policies.
• Other taxes are $2.594 billion, $582 million or 28.9% above benchmark, and $80 million or 3.2% more than Fiscal Year 2020.

June 2021 Tax Collections Summary (in $ millions) Preliminary as of August, 3 2021

¹ The original benchmark for Fiscal Year 2021 was $28.390 billion. On January 15, 2021, as part of the Fiscal Year 2022 Consensus Revenue process, the Fiscal Year 2021 benchmark was adjusted to $29.090 billion. The adjustment is reflected in DOR’s revenue releases beginning in January 2021.

² Section 12 of Chapter 53 of the Acts of 2020 extended the personal income tax filing and payment deadline from April 15, 2020 to July 15, 2020. Additionally, DOR invoked its administrative authority to move April and June 2020 quarterly estimated income tax payment deadlines to July 15. Section 3 of Chapter 78 of the Acts of 2020 required the State Comptroller to record as Fiscal Year 2020 revenue income tax payments originally due in Fiscal Year 2020 but received between July 1 and August 31, 2020.

³ In early August, DOR will make the end-of-year fund allocation and local option adjustments of advanced sales and room occupancy tax payments received in June. The returns associated with June advanced sales and room occupancy tax payments, which are needed to make the year-end adjustments, are not due until the end of July.

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