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News October Revenue Collections Total $1.787 Billion

Income & corporate above benchmark, sales tax below revised benchmark - Total FY17 year-to-date collections up $79 million (1.0%) over benchmark
11/03/2016
  • Massachusetts Department of Revenue

Nicole St. Peter Mac Dermott
(617) 626-2805
stpetermacdn@dor.state.ma.us

(Boston, MA) – Michael J. Heffernan, Commissioner of the Massachusetts Department of Revenue, announced today that preliminary revenue collections for October totaled $1.787 billion, bringing the Fiscal Year 2017 (FY17) total to $7.971 billion, which is 1.0% above revised benchmark.

“October collections are in line with the Commonwealth’s recently-adjusted state tax revenue outlook. While income and corporate collections were ahead of benchmark, sales tax came in slightly below the recently-revised benchmark,” said Commissioner Heffernan. 

On October 14, 2016, Administration and Finance Secretary Kristen Lepore revised the outlook for FY17 sales & use tax revenues downward by $175 million. In October, total sales tax revenues were $536 million, which is $2 million or 0.4% below the revised benchmark.  Without that revision, the shortfall would have been larger, approximately $16 million, or 2.8% below the original benchmark.

  • October 2016 revenues were $1.787 billion, which is $79 million or 4.6% more than the revised monthly benchmark and $123 million more than October 2015
  • Fiscal year-to-date revenues are 1.0% over revised benchmark, and $356 million or 4.7% above the same period in 2015
  • Income tax collections were $43 million or 4.5% above the monthly benchmark  
  • Sales and use tax collections of $536 million were slightly ($2 million or 0.4%) below the revised monthly benchmark
  • Corporate and business taxes were $47 million above the monthly benchmark
  • Other taxes, which include motor fuels, cigarette, estate, and other categories, were $9 million or 4.5% below the monthly benchmark

 

October is one of the smaller tax collection months, with no quarterly estimated payments due for individuals. 

  • Income tax collections for October were $1.003 billion, which is $43 million or 4.5% above the monthly benchmark and $71 million more than October 2015.
  • Withholding collections of $960 million for the month are $62 million or 6.9% above benchmark and $129 million more than October 2015. For the fiscal year-to-date, withholding is 1.7% above benchmark.
  • Income tax estimated payments totaled $41 million, which are $11 million or 21.2% less than the monthly benchmark and $12 million below October 2015.
  • Payments with returns & bills for October totaled $92 million, which are $5 million less than the monthly benchmark and $11 million less than October 2015.
  • Income cash refunds in October totaled $90 million in outflows, which are $3 million more than the monthly benchmark and $35 million more than October 2015. Taxpayers who file extensions for the April deadline are required to complete their returns in October, which can result in increased refund activity.
  • Sales and use tax collections for October totaled $536 million, which are $2 million or 0.4% below the monthly benchmark.  They also represent an increase of $15 million or 2.9% from October 2015. A portion of this increase is attributable to the absence of a sales tax holiday in 2016, which shifted more taxable transactions to September versus the prior year. The resulting revenues are reflected in October.
  • Corporate and business tax collections for the month totaled $59 million, up $43 million from last October and $47 million above the monthly benchmark. The year-to-date revenues for corporate and business taxes are expected to trend closer to the benchmark over time.
  • Other tax collections for October totaled $189 million, down $6 million versus last October and $9 million below the monthly benchmark.

 

October 2016 Tax Collection Summary (preliminary as of November 3, 2016)

Massachusetts Department of Revenue  

The Massachusetts Department of Revenue manages state taxes and child support. We also help cities and towns manage their finances.

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