Press Release  September Revenue Collections Total $4.187 Billion

Boston, MA — Massachusetts Department of Revenue (DOR) Commissioner Geoffrey Snyder today announced that preliminary revenue collections for September totaled $4.187 billion, $12 million or 0.3% less than actual collections in September 2022, and $150 million or 3.5% below benchmark.^[1]

FY2024 year-to-date collections totaled approximately $9.284 billion, which is $78 million or 0.9% more than collections in the same period of FY2023, but $170 million or 1.8% less than the year-to-date benchmark.

“September collections decreased in non-withheld income, sales and use tax, corporate and business tax, and ‘all other’ tax in comparison to September 2022,” said Commissioner Snyder. “These decreases were partially offset by an increase in withholding income tax. The decrease in non-withheld income tax was driven by decreases in income estimated payments and income return payments. The decrease in sales and use tax was due, in part, to typical timing factors in collections. The decrease in corporate and business tax was primarily due to an increase in corporate refunds and a decrease in corporate return payments. The decrease in ‘all other’ tax is mostly attributable to decreases in deeds excise and estate tax, categories that tend to fluctuate.”

DOR estimates that roughly $36 million of the year-over-year decrease in September reflects a shift in sales and use collections between months because of timing, without which September 2023 revenue would be about $24 million or 0.6% more than actual collections in September 2022.

In general, September is a significant month for revenues because many individuals and corporations are required to make estimated payments. Historically, roughly 10% of annual revenue, on average, has been received during September.

Given the brief period covered in the report, September and year-to-date results should not be used as a predictor for the rest of the fiscal year.

Details:

• Income tax collections for September totaled $2.281 billion, $60 million or 2.6% below benchmark, but $69 million or 3.1% more than September 2022.
• Withholding tax collections for September totaled $1.420 billion, $67 million or 4.9% above benchmark, and $145 million or 11.4% more than September 2022.
• Income tax estimated payments for September totaled $819 million, $75 million or 8.4% below benchmark, and $53 million or 6.0% less than September 2022.
• Income tax returns and bills for September totaled $136 million, $48 million or 26.0% below benchmark, and $53 million or 28.1% less than September 2022.
• Income tax cash refunds for September totaled $94 million in outflows, $5 million or 5.1% above benchmark, but $30 million or 24.2% less than September 2022.
• Sales and use tax collections for September totaled $710 million, $41 million or 5.4% below benchmark, and $44 million or 5.8% less than September 2022.
• Meals tax, a sub-set of sales and use tax, for September totaled $126 million, $4 million or 2.8% below benchmark, and $5 million or 4.1% less than September 2022.
• Corporate and business tax collections for September totaled $957 million, $37 million or 3.7% below benchmark, and $26 million or 2.7% less than September 2022.
• “All other” tax collections for September totaled $239 million, $13 million or 5.0% below benchmark, and $11 million or 4.4% less than September 2022.

September 2023 Tax Collections Summary (in $ millions) Preliminary as of October 4, 2023

Footnotes

[1]

With the recent enactment of the FY2024 budget, monthly revenue benchmarks were developed for the August 2023 through June 2024 period. The benchmarks included in this press release do not include the impact of the tax relief bill enacted on October 4, 2023.

###