Massachusetts Department of Revenue (DOR) Commissioner Geoffrey Snyder last week announced that October revenue collections totaled $2.089 billion, $62 million or 3.1-percent more than the actual collections in October 2019.
FY2021 year-to-date collections total approximately $9.347 billion, which is $118 million or 1.3-percent 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. Such payments and refunds have been recorded in FY2020 pursuant to legislation and are not shown in FY2021 year-to-date collections.
“October revenue was driven mostly by increases in withholding, non-withheld income tax, and regular sales tax. These increases were partly offset by decreases in meals tax, and ‘All Other’ tax,” said Commissioner Snyder. “An increase in individual return payments, combined with a decrease in refunds, resulted in growth in non-withheld income tax in October. The moderate withholding increase reflects unemployment insurance benefits, one-time events, and timing factors. DOR will continue to monitor these revenue categories closely.”
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 percent of annual revenue is received during October, on average.
Collections in this month reflected the impact of the 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. The most recent extension was announced on Sept. 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. Note that October revenues continued to reflect the impact of COVID-19 on the tax base.
Consequently, the October monthly and year-to-date figures should be used with caution.
Preliminary October Revenue Collections
•Income tax collections for October were $1.175 billion, $66 million or 5.9-percent more than October 2019.
•Withholding tax collections for October totaled $1.071 billion, $22 million more than October 2019.
•Income tax estimated payments totaled $61 million for October, $1 million less than October 2019.
•Income tax returns and bills totaled $144 million for October, $6 million more than October 2019.
•Income tax cash refunds in October totaled $101 million in outflows, $39 million less outflow than October 2019.
•Sales and use tax collections for October totaled $612 million, $9 million more than October 2019.
•Corporate and business tax collections, including corporate estimated payments, for October totaled $77 million, $1 million more than October2019.
•“Other tax” collections for October totaled $225 million, $14 million less than October 2019.