Press Release  January Revenue Collections Total $3.834 Billion

(Boston, MA) — Massachusetts Department of Revenue (DOR) Commissioner Geoffrey Snyder today announced that preliminary revenue collections for January totaled $3.834 billion, $192 million or 4.8% less than actual collections in January 2022, and $185 million or 4.6% below benchmark.

FY2023 year-to-date collections totaled approximately $21.643 billion, which is $229 million or 1.0% less than collections in the same period of FY2022, but $922 million or 4.4% above the year-to-date benchmark.

The January and fiscal-year-to-date revenue benchmarks have not been updated to reflect the revised FY2023 revenue collections forecast of $39.768 billion announced by Secretary of Administration and Finance Matthew J. Gorzkowicz on January 30, 2023. They are still based on the FY2023 budget signed on July 28, 2022, which assumed FY2023 revenue collections of $39.618 billion.

“January collections decreased in withholding, non-withholding income tax, and ‘all other tax’ in comparison to January 2022,” Commissioner Snyder said. “These decreases were partially offset by increases in sales and use tax and corporate and business tax. The decrease in withholding was mostly driven by corporate restructuring events that positively impacted January 2022 withholding collections. Although withholding declined in January, year-to-date withholding is 3.3% higher than the same period of FY2022. The decrease in non-withholding income tax is most likely the result of pass-through entity members utilizing credits to reduce income tax payments and weakness in financial markets in calendar year 2022. The increase in sales and use tax reflects, in part, continued strength in retail sales and the increase in corporate and business tax is primarily due to an increase in estimated payments and a favorable decrease in refunds.”

January is a significant month for revenues because many personal income taxpayers are required to make quarterly estimated payments. Historically, roughly 10.2% of annual revenue, on average, has been received during January.

Details:

• Income tax collections for January totaled $2.568 billion, $327 million or 11.3% below benchmark, and $347 million or 11.9% less than January 2022.
• Withholding tax collections for January totaled $1.564 billion, $173 million or 10.0% below benchmark, and $65 million or 4.0% less than January 2022.
• Income tax estimated payments for January totaled $936 million, $103 million or 9.9% less than benchmark, and $221 million or 19.1% less than January 2022.
• Income tax returns and bills for January totaled $111 million, $19 million or 14.9% less than benchmark, and $36 million or 24.4% less than January 2022.
• Income tax cash refunds for January totaled $42 million in outflows, $31 million or 295.7% above benchmark, and $24 million or 138.7% more than January 2022.
• Sales and use tax collections for January totaled $887 million, $96 million or 12.1% above benchmark, and $95 million or 12.0% more than January 2022.
• Meals tax, a sub-set of sales and use tax, collections for January totaled $122 million, $26 million or 26.6% above benchmark, and $23 million or 23.8% more than January 2022.
• Corporate and business tax collections for January totaled $156 million, $78 million or 99.7% above benchmark, and $69 million or 79.7% more than January 2022.
• “All other tax” collections for January totaled $223 million, $31 million or 12.0% below benchmark, and $9 million or 3.9% less than January 2022.

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

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