Press Release  November Revenue Collections Total $2.124 Billion

(Boston, MA) — Massachusetts Department of Revenue (DOR) Commissioner Geoffrey Snyder today announced that November revenue collections totaled $2.124 billion, $31 million or 1.5% more than the actual collections in November 2019.

FY2021 year-to-date collections totaled approximately $11.464 billion, which is $142 million or 1.3% more than collections in the same period of FY2020. Not reflected in the total is approximately $2.334 billion in deferred personal income tax payments and refunds processed in July and August. As indicated in our October revenue release, these payments and refunds have been recorded as FY2020 collections pursuant to legislation and are not shown in FY2021 year-to-date collections.

“November revenue performance was driven mostly by increases in withholding, regular sales tax, and corporate and business taxes. These increases were partly offset by decreases in non-withheld income tax, meals tax, and ‘all other’ tax,” said Commissioner Snyder. The increase in withholding reflects unemployment insurance benefits and timing factors. DOR will continue to monitor these revenue categories closely in the coming months.”

Like October, November is among the lower months for revenue collection, because neither individual nor business taxpayers make significant estimated payments during the month. Historically, roughly 6.5% of annual revenue is received on average during November.

Collections in this month reflected the impact of filing and payment due date extensions for regular sales, meals, and room occupancy taxes. The due date for these tax types has been extended several times this year for certain businesses.¹The most recent extension was announced on September 15, 2020. With this extension, returns and payments of these taxes for certain small businesses originally due during the period beginning March 2020 through April 2021 will instead be due in May 2021.²

Note that November revenues continued to reflect the impact of COVID-19 on the tax base. Consequently, the November monthly and year-to-date figures should be used with caution.

Details:

Preliminary October Revenue Collections

• Income tax collections for November were $1.270 billion, $72 million or 6.0% more than November 2019.
• Withholding tax collections for November totaled $1.255 billion, $86 million more than November 2019.
• Income tax estimated payments totaled $36 million for November, $7 million more than November 2019.
• Income tax returns and bills totaled $48 million for November, virtually equal to the same period last year.
• Income tax cash refunds in October totaled $69 million in outflows, $21 million more outflow than November 2019.
• Sales and use tax collections for November totaled $590 million, $4 million less than November 2019.
• Corporate and business tax collections, including corporate estimated payments, for November totaled $51 million, $8 million more than November 2019.
• “Other tax” collections for November totaled $213 million, $44 million less than November 2019.

November 2020 Tax Collections Summary (in $ millions) Preliminary as of December 03, 2020

¹TIR 20-7: Extension of Late-File and Late- Pay Penalty Relief for Certain Business Taxpayers Affected by the COVID-19 State of Emergency

²Massachusetts Announces Extension of Administrative Tax Relief for Local Businesses

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