- Massachusetts Department of Revenue
Thursday, July 15, 2010
Robert R. Bliss
June collections exceed monthly benchmark by $149 million; full year collections exceed FY10 estimate by $78 million
Revenue Commissioner Navjeet K. Bal today announced that preliminary revenue collections for June 2010 were $2.031 billion, an increase of $240 million, or 13.4% from June 2009, $149 million above the monthly benchmark. Preliminary revenues for all of FY10 were $18.538 billion, an increase of $279 million or 1.5 percent from FY09 collections. FY10 collections were $78 million above the January 7, 2010 Executive Office for Administration and Finance FY10 estimate of $18.460 billion.
"After posting the steepest percentage decline in recent history in FY09 due to the global economic crisis, tax revenues began to recover in FY10, especially in the last quarter of the fiscal year, when revenues grew by 5.7% (baseline) compared to the last quarter of FY09, reflecting an improvement in current economic conditions here in Massachusetts," said Commissioner Bal.
Income tax collections for June were $1.020 billion, up $130 million or 14.6 percent from a year ago, $85 million above benchmark. Income tax estimated payments of $311 million were up $32 million or 11.6 percent from a year ago, $52 million above benchmark. Withholding tax collections of $726 million were up $44 million or 6.5 percent above a year ago, $21 million above benchmark.
June sales and use tax collections of $424 million were up $92 million or 27.6 percent from June 2009, $28 million above the monthly benchmark, as regular sales, meals tax, and motor vehicle sales tax all exceeded monthly forecasts. DOR estimates that the sales tax rate increase implemented last August generated approximately $79 million in additional June sales tax revenue and that removing the alcoholic beverages sales tax exemption generated approximately $10.7 million in additional June sales tax revenue.
June corporate and business tax collections of $418 million were down $1 million or 0.3 percent from a year ago and were $12 million above the monthly benchmark. Corporate excise totaled $309 million, down $1 million, $41 million above the monthly benchmark, with the decline from last year resulting from $49 million in non-recurring settlement payments received in June 2009 and corporate tax rate cuts effective January 1, 2010, which reduced June 2010 revenues by an estimated $14 million. Insurance excise totaled $90 million, up $9 million, or 11.4 percent from the last year, $11 million above the monthly benchmark, and financial institutions excise totaled $17 million, down $11 million, or 39.1 percent from last year, $39 million below the monthly benchmark, with about $4 million of the financial institutions excise decline resulting from tax rate cuts that were effective January 1, 2010.
For FY10 as a whole, personal income tax collection totaled $10.110 billion, a decrease of $474 million or 4.5 percent, and was $160 million below the full year estimate. Withholding declined $46 million or 0.5 percent and was $194 million above the yearly benchmark, while income tax estimated payments which include capital gains, dividends and interest declined $292 million or 16.5 percent, $9 million below estimate. Refunds were $1.506 billion, down $44 million or 2.8 percent and $5 million above estimate. Income tax payments with returns and bills declined by $179 million, or 12.4 percent, $344 million below estimate.
FY10 sales tax receipts totaled $4.612 billion, up $743 million, or 19.2 percent, $111 million above the FY10 full year estimate. Regular sales tax totaled $3.283 billion, up $483 million, or 17.3 percent, $56 million above the full year estimate, meals tax totaled $760 million, up $130 million, or 20.6 percent, $17 million above the full year estimate, and motor vehicle sales tax totaled $569 million, up $130 million, or 29.6 percent, $37 million above the full year estimate. Over the 10 collection months since sales tax was increased in August 2009, DOR estimates that the higher rate generated approximately $739 million in additional sales tax revenue for the Commonwealth, after adjusting for the behavioral impacts of the rate change. DOR estimates that over the same 10 month period, removal of the alcoholic beverage sales tax exemption generated approximately $97 million in additional sales tax revenue, about $19 million above the estimate upon which the original FY10 budget was based. The volume of alcoholic beverages sold has declined by 1% since last August.
FY10 full year corporate and business tax collections totaled $2.119 billion, up $20 million, or 1.0 percent, $88 million above the full year estimate. Corporate excise tax collections totaled $1.600 billion, up $51 million or 3.3% from last year, $96 million above the full year estimate, financial institutions excise tax collections totaled $235 million, down $8 million or 3.2 percent from the previous year, $18 million above the full year estimate, and insurance premiums taxes totaled $285 million, down $24 million or 7.8% from last year, $2 million above the full year estimate.