Fiscal Year 2022 Revenue Collections Total $41.105 Billion

Massachusetts Department of Revenue (DOR) Commissioner Geoffrey Snyder announced that preliminary revenue collections for June 2022 totaled $4.143 billion as of August 4, 2022, which is $470 million or 12.8% more than actual collections in June 2021 and $780 million or 23.2% more than benchmark.

June 2022 revenue collections were impacted by the recently enacted elective pass-through entity (PTE) excise. After adjusting for PTE excise, June 2022 collections are $213 million or 5.8% above actual collections in June 2021, and $710 million or 22.3% more than benchmark. 

Revenue collections for FY2022 were $41.105 billion, which is $6.982 billion or 20.5% more than collections in FY2021, and $3.438 billion or 9.1% more than the benchmark. After adjusting for PTE excise, FY2022 collections are $4.932 billion or 14.5% more than collections in FY2021 and $2.668 billion or 7.3% more than benchmark.

Since FY21, when sales tax acceleration was implemented, entities subject to sales tax acceleration make estimated payments in June for which returns are due in late July, and only once those returns are filed can DOR assess the split between taxes that are collected on behalf of the state, versus local option taxes that go to municipalities and taxes owed to the convention center fund.

“Fiscal Year 2022 revenue collections reflect unprecedented capital gains tax revenue, the temporary impact of PTE excise payments, current labor market conditions, and strength in retail sales”, said Commissioner Snyder.

In general, June is a significant month for revenues because many individuals and corporations are required to make estimated payments. In most years, the month of June has ranked second (behind only April) in the proportion of annual revenue received during the month.

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.