Press Release  July Revenue Collections Total $2.367 Billion

Boston, MA — Massachusetts Department of Revenue (DOR) Commissioner Geoffrey Snyder today announced that preliminary revenue collections for July totaled $2.367 billion, $101 million or 4.5% more than the actual collections in July 2021. July 2022 revenue collections were impacted by the recently enacted elective pass-through entity (PTE) excise. After adjusting for PTE excise, July 2022 collections are $92 million or 4.1% above actual collections in July 2021.

“July revenue included increases relative to July 2021 collections in withholding, non-withheld income tax, sales tax, and decreases in corporate and business tax and the ‘all other taxes’ category” said Commissioner Snyder. “The increase in withholding reflects current labor market conditions, while the decrease in corporate and business tax was the result of typical periodic fluctuations.”

July is one of the smaller tax collection months because no quarterly estimated payments are due for most individuals and businesses. Historically, roughly 6.7% of annual revenue, on average, has been received during July.

Given the brief period covered in the report, July results should not be used as a predictor for the rest of the fiscal year. With the recent enactment of the Fiscal Year 2023 budget, monthly revenue benchmarks are currently under development and will be incorporated into future revenue reports.

Note: June 2022 and full Fiscal Year 2022 revenue collections will be available once DOR completes the processing of June revenue, including certain estimated payments for which returns are due at the end of July given a change in sales tax processing enacted in Fiscal Year 2021. These revenue collection figures will be available this week.

Details:

• Income tax collections totaled $1.318 billion, $153 million or 13.2% more than July 2020.
• Withholding tax collections for July totaled $1.223 billion, $127 million or 11.6% more than July 2021.
• Income tax estimated payments for July totaled $54 million, $12 million or 28.0% more than July 2021.
• Income tax returns and bills for July totaled $60 million, $14 million or 30.6% more than July 2021.
• Income tax cash refunds for July totaled $19 million in outflows, $1 million or 2.9% less (favorable) than July 2021.
• Sales and use tax collections for July totaled $748 million, $10 million or 1.4% more than July 2021.
• Corporate and business tax collections for July totaled $94 million, $55 million or 36.7% less than July 2021.
• “All other” tax collections for July totaled $207 million, $8 million or 3.7% less than July 2021.

July 2022 Tax Collections Summary (in $ millions) Preliminary as of August 03, 2022

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