Press Release  October Revenue Collections Total $2.359 Billion

Boston, MA — Massachusetts Department of Revenue (DOR) Commissioner Geoffrey Snyder today announced that preliminary revenue collections for October totaled $2.359 billion, $85 million or 3.5% less than actual collections in October 2021, but $293 million or 14.2% more than benchmark.[1]

FY2023 year-to-date collections totaled approximately $11.565 billion, which is $369 million or 3.3% more than collections in the same period of FY2022 and $529 million or 4.8% more than the year-to-date benchmark.

“October collections decreased in non-withholding income tax, corporate and business tax, and ‘all other tax’ in comparison to October 2021” said Commissioner Snyder. “These decreases were partially offset by increases in withholding and sales and use tax. The decrease in non-withholding is primarily driven by two offsetting factors: an increase in income tax refunds (outflows) related to passthrough entity (“PTE”) member credits and a partially offsetting increase in income tax return payments. The decrease in ’all other tax’ is primarily attributable to estate tax, a category that tends to fluctuate. The increase in withholding is mostly due to the timing of the receipt of withholding payments: certain payments received in October 2022 were captured in November in 2021. The increase in sales and use tax reflects, in part, continued strength in retail sales.”

In general, October 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, on average, has been received during October.

Details:

• Income tax collections for October totaled $1.230 billion, $248 million or 25.3% above benchmark, but $99 million or 7.5% less than October 2021.
• Withholding tax collections for October totaled $1.360 billion, $22 million or 1.6% below benchmark, but $172 million or 14.4% more than October 2021.
• Income tax estimated payments for October totaled $77 million, $5 million or 6.4% less than benchmark, but $4 million or 5.7% more than October 2021.
• Income tax returns and bills for October totaled $302 million, $195 million or 182.1% more than benchmark, and $119 million or 64.8% more than October 2021.
• Income tax cash refunds for October totaled $508 million in outflows, $81 million or 13.7% below benchmark, but $394 million or 343.8% more than October 2021.
• Sales and use tax collections for October totaled $816 million, $108 million or 15.3% above benchmark, and $130 million or 19.0% more than October 2021.
• Meals tax collections, a sub-set of sales and use tax, for October totaled $131 million, $18 million or 15.8% above benchmark, and $22 million or 20.7% more than October 2021.
• Corporate and business tax collections for October totaled $57 million, $27 million or 32.3% below benchmark, and $42 million or 42.6% less than October 2021.  
• “All other tax” collections for October totaled $257 million, $36 million or 12.3% below benchmark, and $74 million or 22.3% less than October 2021.

October 2022 Tax Collections Summary (in $ millions) Preliminary as of November 3, 2022

Footnotes

[1]

With the recent enactment of the FY2023 budget, monthly revenue benchmarks were developed for the September 2022 through June 2023 period only.

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