State Tax Revenues See Small Dip

Massachusetts Department of Revenue (DOR) Commissioner Geoffrey Snyder today announced that preliminary revenue collections for July totaled $2.648 billion, $18 million or 0.7% less than actual collections in July 2023.

“July revenue included decreases relative to July 2023 collections in withholding, non-withheld income tax, and ‘all other’ tax,” said Commissioner Snyder. “These decreases were partially offset by increases in sales and use tax, and corporate and business tax. The decrease in withholding reflects current labor market conditions as well as periodic fluctuations. The decrease in ‘all other’ tax is due, in part, to estate tax, a category that tends to fluctuate.”

DOR estimates that roughly $60 million in July revenue reflects a shift in collections between months because of timing, without which July 2024 revenue would be about $78 million or 2.9% less than actual collections in July 2023.

The reported collections are not being measured against fiscal year 2025 benchmarks, which are expected to be established later this month.

July is one of the smaller tax collection months because no quarterly estimated payments are due for most individuals and businesses. Historically, roughly 6.7% of annual revenue, on average, has been received during July.

Given the brief period covered in the report, July results should not be used as a predictor for the rest of the fiscal year.

Note: June 2024 and full Fiscal Year 2024 revenue collections will be available once DOR completes the processing of June revenue.

Details:

· Income tax collections for July totaled $1.453 billion, $41 million or 2.7% less than July 2023.

· Withholding tax collections for July totaled $1.379 billion, $14 million or 1.0% less than July 2023.

· Income tax estimated payments for July totaled $43 million, $2 million or 5.6% more than July 2023.

· Income tax returns and bills for July totaled $70 million, $16 million or 18.9% less than July 2023.

· Income tax cash refunds for July totaled $39 million in outflows, $12 million or 46.3% more than July 2023.

· Sales and use tax collections for July totaled $839 million, $50 million or 6.4% more than July 2023.

· Corporate and business tax collections for July totaled $143 million, $6 million or 4.1% more than July 2023.

· “All other” tax collections for July totaled $213 million, $33 million or 13.5% less than July 2023.